NEW DELHI: The country’s largest two-wheeler maker Hero MotoCorp on Friday said it will invest up to Rs 600 crore over two years to set up a Global Parts Center in Tirupati, Andhra Pradesh.
Currently, the company’s Global Parts Center 1.0 is situated at Neemrana, Rajasthan, with a storage capacity of up to 26,000 stock keeping units (SKUs). The capacity of this facility is fully utilised.
The upcoming facility in Tirupati will have a capacity of up to 36,700 SKUs. Hero said the new unit will help it to cater the future growth in the parts, accessories and merchandise (PAM) business as its focus here has led to the PAM business crossing annualised revenue of Rs 5,000 crore. Hero on Friday reported a 51% YoY jump in standalone net profit to Rs 1,073.38 crore for Q3FY24. The company’s turnover for Q3 of this fiscal grew by 21% to Rs 9,723.73 crore. Hero’s PAT and turnover for Q3FY24 is higher than analysts’ expectations.
Niranjan Gupta, CEO, Hero MotoCorp, said, “Our recent launches in premium segment have met with early success, and we are ramping up capacity of our upper premium models. We will keep fortifying our premium portfolio backed by strong brand building and best in class ‘phygital’ customer experience. Moving forward, our Margin shape will allow us to fuel our growth even more.”