Hero Electric to double capacity, to set up plant in south India

Hero Electric has decided to double capacity over the next 12 months. The company, which is one of the largest electric scooter makers in India by sales,is eyeing expansion either at its Ludhiana unit or may explore setting up a greenfield one in South India.

Speaking on the sidelines of the launch of the company’s electric scooter range, Sohinder Gill, CEO, Hero Electric, said the company will invest Rs 700 crore over the next three to four years as capex. Of this, nearly Rs 250-300 crore will go towards capacity addition.

He added: “We can look at brownfield expansion at Ludhiana or go for a greenfield unit down South. We are exploring all the five (Southern) States and a call on this will be taken soon.”

“We have a production unit at Ludhiana, Punjab.
Expansion can happen there or in other locations. We may opt for a greenfield second plant somewhere in south India,” he said.

Gill said recent tax sops announced by the government
will also come into play while making a decision on the new
plant.

Image Credit : brandequity.economictimes.indiatimes.com

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