Hero MotoCorp forms subsidiary in Columbia, stock gains
With a project cost of US$ 70 million, HMCL will invest US$ 38 million in CAPEX, with the rest being utilised as working capital over the next three-year period.
By ET Online | Updated:
MUMBAI: Shares of two-wheeler major Hero MotoCorpBSE 1.22 % moved higher in trade after the company formed a wholly-owned subsidiary " HMCL Colombia SAS."
With a project cost of US$ 70 million, HMCL will invest US$ 38 million in CAPEX, with the rest being utilised as working capital over the next three-year period. The equity investment will be made through HMCL's wholly-owned subsidiary in the Netherlands -HMCL BV.
The manufacturing plant - spread over 17 acres of land at the Parque Sur Free Trade Zone at Villa Rica in the state of Cauca - about 500 km south-west of Bogota - is expected to go on stream by the middle of calendar year 2015 with an initial installed capacity of 78,000 units.
"Once operational towards the middle of Financial Year 2015-16, the plant will have an annual capacity of 78,000 units that will be scaled up to 150,000 units in the next 3-4 years," said Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp.
At 10:20 a.m.; the stock was at Rs 2,608.25, up 0.99 per cent, on the BSE. It touched a high of Rs 2,611.95 and a low of Rs 2,586.30 in trade today.
With a project cost of US$ 70 million, HMCL will invest US$ 38 million in CAPEX, with the rest being utilised as working capital over the next three-year period. The equity investment will be made through HMCL's wholly-owned subsidiary in the Netherlands -HMCL BV.
The manufacturing plant - spread over 17 acres of land at the Parque Sur Free Trade Zone at Villa Rica in the state of Cauca - about 500 km south-west of Bogota - is expected to go on stream by the middle of calendar year 2015 with an initial installed capacity of 78,000 units.
"Once operational towards the middle of Financial Year 2015-16, the plant will have an annual capacity of 78,000 units that will be scaled up to 150,000 units in the next 3-4 years," said Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp.
At 10:20 a.m.; the stock was at Rs 2,608.25, up 0.99 per cent, on the BSE. It touched a high of Rs 2,611.95 and a low of Rs 2,586.30 in trade today.
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