In a move to expand its parts, accessories, and merchandise business, Hero MotoCorp intends to invest up to Rs 600 crore over two years to establish a Global Parts Centre in Tirupati, Andhra Pradesh. The company’s focus on the Parts Accessories and Merchandise (PAM) business has resulted in annualized revenue exceeding Rs 5,000 crore. To facilitate growth in this sector, the company plans to enhance its capacity with an investment of Rs 600 crore. The new parts center is slated to accommodate up to 36,700 SKUs.
Presently, India’s largest two-wheeler manufacturer operates one Global Parts Center in Neemrana, Rajasthan, with a storage capacity of up to 26,000 SKUs. The company noted that the capacity of the Neemrana facility is fully utilised.
The additional capacity expansion is scheduled for the financial year 2025-26, with the investment being funded through internal accruals.
The standalone net profit of India’s largest two-wheeler manufacturer surged by 51% year-on-year to Rs 1,073.38 crore, supported by robust operating performance during the quarter. Revenue from operations climbed by 21% to Rs 9,723.73 crore, driven by volume growth compared to the low base in the year-ago quarter.