Hero MotoCorp gains after commencing operations at Colombia plant

Hero MotoCorp rose 1.76% to Rs 2,358 at 12:10 IST on BSE after the company said that its first global manufacturing facility at Villa Rica, in Colombia became operational yesterday, 8 September 2015.

The announcement was made during market hours today, 9 September 2015.

Meanwhile, the S&P BSE Sensex was up 433.45 points or 1.71% at 25,751.32.

On BSE, so far 7,264 shares were traded in the counter as against average daily volume of 40,000 shares in the past two weeks.

The stock hit a high of Rs 2,369.80 and a low of Rs 2,328.05 so far during the day. The stock hit a record high of Rs 3,271.80 on 1 December 2014. The stock had hit a 52-week low of Rs 2,252 on 8 May 2015.

Hero MotoCorp's (HMCL) Colombia plant is the company's fifth manufacturing facility, in addition to four assembly plants in India. The Colombia plant will act as a hub for selling to the Andean countries. It can also be a strategic base for shipping to North American markets such as Mexico and the US. The plant has been built at a project cost of $70 million of which $38 million has been utilized in capital expenditure and rest will be used as working capital over the next few years. The plant will have initial production capacity of 80,000 units per annum. The capacity will be expanded to produce 1.50 lakh units per annum in the next phase. The new plant will manufacture company's best-selling and globally successful range of motorcycles and scooters. The plant will manufacture ten products from the HMCL portfolio, including the all-new scooter Dash.

Hero MotoCorp's net profit rose 33.33% to Rs 750.34 crore on 2% decline in net sales to Rs 6855.98 crore in Q1 June 2015 over Q1 June 2014.

Hero MotoCorp is the world's largest two-wheeler manufacturer in terms of production capacity.

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