Hero MotoCorp Ltd (HMCL), the world’s largest two-wheeler manufacturer, has announced setting up a Global Parts Centre (GPC) at Neemrana in the northern Indian state of Rajasthan. The highly-mechanised, technologically-superior GPC will be a new industry benchmark once it becomes fully-operational,” Mr. Munjal said while addressing an audience of over 200, including more than 125 top component suppliers of HMCL.
The GPC, which is expected to be operational in the third quarter of the next financial year (2013-14), will initially employ 400 personnel. The state-of-the-art GPC will have automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, the Green Building Concept.

Our supply chain partners have over the years enhanced product competitiveness and contributed significantly to value creation in our business. They have been our Partners in Progress. Now, as we embark on our ambitious global expansion plan, they are also going to play a significant role in this strategic move,” Mr Munjal said.The company also informed its supply chain partners that it will set up the fifth plant at Halol in the western India state of Gujarat, in addition to the fourth plant at Neemrana in Rajasthan.

HMCL also rewarded some of the top-performing supply chain partners in 10 specially-instituted different awards categories at the conference.

While the “Manufacturing Excellence Award” went to Keihin Fie Pvt. Ltd., the “Indian Company – Global Vision Award” was given to Motherson Sumi Systems Ltd. Mr. Ujjwal Munjal of Rockman Industries Ltd won the “Young Entrepreneur Award” while the “Lifetime Achievement Award” was bestowed on Mr. V P Bajaj of Bajaj Motors Ltd.

The “Platinum Excellence Award (Casting Group)” went to Zhejiang Wangfeng Motorcycle Wheel Company Ltd of China and the “Gold Excellence Award (Chemical Group)” went to Classic Stripes Pvt. Ltd of Mumbai, India.

The “Gold Excellence Awards” in Electrical Group and Proprietary Group went to Denso India Ltd and Mitsui Kinzoku Components India Pvt. Ltd respectively.
Bill Forge Pvt. Ltd won the “Silver Excellence Awards” in Machining. Group while Munjal Auto Industries Ltd won the same award for Fabrication Group.

The proposed Global Parts Centre comes close on the heels of HMCL recently announcing an investment of over Rs 2500 crore in setting up two new plants, expanding capacity at existing plants and in building an integrated R&D centre (at Kukas in Rajasthan). With this expansion, total installed capacity of the company would be touching more than nine million units in two years’ time – which is in line with the stated objective of reaching 10 million units in the next five years.

The proposed new state-of-the-art integrated R&D centre at Kukas will be set-up over an area of 250-acre and the centre will be the largest two-wheeler R&D set-up in the country, and will employ over 500 engineers.

Riding on its highest-ever quarterly volume sales of 16,42,292 units, supported by two consecutive months of highest-ever sales, HMCL last week reported its best-ever turnover (Net Sales & Other Operating income) of Rs. 6247.28 crores for the first quarter (April-June 2012) of FY’13. This is a growth of 9.95 per cent over the corresponding period in the last fiscal (April-June 2011) of FY’12. The company’s profit before tax for the period stood at Rs 734.88 crore, while profit after tax (PAT) stood at Rs 615.46 crores. The Company recorded an EBIDTA margin of 15 per cent.