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Hero Electric, one of India's largest two-wheeler EV manufacturers, has announced the set up of a mega factory in Rajasthan by investing a sum of Rs 1,200 crores.
Hero Electric is a pioneer in the Indian EV two-wheeler space with an aim to provide 'Zero Pollution' transportation. It has a pan-India presence with over 400,000 customers. It offers a range of EVs such as Eddy, Photon LP, Optima CX, Atria LX & the Electric cycle Velocity.
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The company has signed an MoU with Rajasthan Government at the ‘Invest Rajasthan summit’. The proposed factory will be set up in the Salarpur region of the Alwar District in East Rajasthan.
"Greenfield facilities of this mega-size and large budget give us the opportunity to introduce very energy efficient green manufacturing processes with a healthy blend of automation using robotic arms and the nimble-fingered skills of the local artisan workforce, using the clean solar energy that the state provides," CEO Sohinder Gill said.
The facility will be spread over an area of 170 acres and will be fully equipped with modern equipment, robotics, and innovative technologies to utilize sustainable and renewable energy like solar energy. The plant is within 100 km of Delhi Airport & close to automotive clusters in NCR. Production is expected to begin by the end of 2023.
"The demand is robust; we have a substantial waiting list and we are resolving the supply chain challenges. We want to be ready with capacity, as the adoption of EVs gains momentum. The market, I believe, is going to move much faster than anyone could imagine. The awareness is growing, and the cost of operation is lower.” said MD Naveen Munjal.
The company is in talks with PE investors to raise money. According to Munjal, there is a strain on the company's working capital and they would need money to scale up the capacity. The deal is expected to be a combination of debt and equity & the same is likely to be concluded shortly.
Hero Electric currently has 850 touch points throughout India with plans to grow by 80% within two years. The company is actively pursuing partnerships to set up charging stations and increase production, such as its alliance with Mahindra & Mahindra for production at the latter's Pithampur plant.
Article by Aman Agarwal.
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