Hero MotoCorp plans to invest 16b rupees in new plant

Hero MotoCorp Ltd, India's top maker of motorcycles and scooters, plans to invest 16 billion rupees ($262 million) to set up a new manufacturing plant in southern India, a source directly involved in the matter said.

Hero has signed a preliminary agreement with the Andhra Pradesh state government to set up the plant, to be spread across 600 acres, which can produce upto 1.8 million vehicles annually, the source said.

Hero, which has three operational plants and one under construction across India, did not have an immediate comment. The company also plans to set up a plant in the western state of Gujarat, where construction is expected to begin soon, the company's annual report showed.