Hero MotoCorp has received approval for investment of upto Rs 600 crore (approximate), over a period of two years, for setting up a Global Parts Center (GPC) 2.0 with a storage capacity of upto 36,700 Stock Keeping Units (SKUs), at Tirupati, Andhra Pradesh, in order to cater to the future growth in the Parts, Accessories and Merchandise business.

The proposed capacity is expected to be added by FY27. The Board of Directors of the company at its meeting held on February 09, 2024, has considered and approved the same.

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 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.”