Hero Cycles to bring 1 million production capacity manufacturing plant in Mega Industrial Park in Bihta

Hero Cycles Ltd, the world's largest cycle manufacturer has laid the foundation of a new manufacturing plant in Bihar's Bihta Industrial Park that is set to extend the company's production capacity by a million units per annum.

The ground breaking ceremony for the new plant was presided over today by Hero Cycles Chairman Mr O P Munjal and Co-chairman and Managing Director Mr Pankaj Munjal in Bihar Government's ambitious Logistic and Industrial Park in Bihta, 37 km from Patna.

The new manufacturing unit in Bihta is expected to become operational in 2014 and will be Hero Cycles Ltd's third such production facility in the country and the first outside Punjab.

"This plant is part of our strategy to not only expand production but also look for a manufacturing presence outside our traditional ground in Ludhiana. This new plant will add to our production capacity by a million and will produce for the region," said Mr O P Munjal.

The company currently produces from its manufacturing plant in Ludhiana and by 2014 a second manufacturing plant is set to become operational in Mangli, Punjab.

"It is with great pride that we are establishing our new manufacturing plant in Bihta and we thank the government of Bihar for extending all support to us. Going forward we plan to dedicate this manufacturing plant to cater to the supply needs of the eastern Indian market. This plant will primarily meet the demands of the domestic market," said Mr Munjal, while addressing the gathering after the Bhoomi Poojan ceremony.

The Bihta plant, also likely to start operations by next year, is being built at a project outlay of Rs 40 crore and is expected to produce largely for the eastern Indian market.

"The mega industrial part in Bihta is a lucrative location and we are thankful to the government of Bihar for supporting and enabling our endeavor to establish a major plant here," said Mr Sanjay Singh, Vice President, Corporate Planning, Hero Cycles Ltd.

The ceremony was held in the presence of Mr. S.K. Rai, M D Works, Mr. G D Kapoor, Director Marketing and Sales, and Mr. Ankur Thakur, Vice President, Marketing, among others. Hero Cycles has a production capacity of 5.60 million and a turnover of Rs 1450 crore.

Source : Equity Bulls

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