Hero MotoCorp Ltd (HMCL), the world's largest two-wheeler manufacturer, today announced the setting up of a global parts centre (GPC) at Neemrana in Rajasthan.

''We will be setting-up a state-of-the-art global parts centre spread over 35 acres at Neemrana with an initial investment of Rs160 crore,'' Pawan Munjal, managing director and chief executive of HMCL, said at the company's Global Supply Chain Partners Conference-2012 (GSCPC) at St Petersburg, Russia, today.

''The highly-mechanised, technologically-superior GPC will be a new industry benchmark once it becomes fully-operational,'' Munjal said while addressing an audience of over 200, including more than 125 top component suppliers of HMCL.

These component suppliers of the company – drawn from India, China, Thailand, Japan and Europe – have converged at this historic Russian city to attend the three-day global conference being held at the National Congress Palace.

The GPC, which is expected to be operational in the third quarter of the next financial year (2013-14), will initially employ 400 personnel.

The state-of-the-art GPC will have automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, the Green Building Concept.

''Our supply chain partners have over the years enhanced product competitiveness and contributed significantly to value creation in our business. They have been our partners in progress. Now, as we embark on our ambitious global expansion plan, they are also going to play a significant role in this strategic move,'' Munjal said.

The company also informed its supply chain partners that it will set up the fifth plant at Halol in Gujarat, in addition to the fourth plant at Neemrana in Rajasthan.

HMCL also rewarded some of the top-performing supply chain partners in 10 specially instituted different awards categories at the conference.

While the `Manufacturing Excellence Award' went to Keihin Fie Pvt Ltd, the `Indian Company – Global Vision Award' was given to Motherson Sumi Systems Ltd. Ujjwal Munjal of Rockman Industries Ltd won the `Young Entrepreneur Award' while the `Lifetime Achievement Award' was bestowed on V P Bajaj of Bajaj Motors Ltd.

The `Platinum Excellence Award (Casting Group)' went to Zhejiang Wangfeng Motorcycle Wheel Company Ltd of China and the `Gold Excellence Award (Chemical Group)' went to Classic Stripes Pvt Ltd of Mumbai.

The `Gold Excellence Awards' in electrical group and proprietary group went to Denso India Ltd and Mitsui Kinzoku Components India Pvt Ltd, respectively.

Bill Forge Pvt Ltd won the `Silver Excellence Awards' in machining group while Munjal Auto Industries Ltd won the same award for the fabrication group.

The proposed global parts centre comes close on the heels of HMCL recently announcing an investment of over Rs2,500 crore in setting up two new plants, expanding capacity at existing plants and in building an integrated R&D centre (at Kukas in Rajasthan). With this expansion, total installed capacity of the company would be touching more than nine million units in two years – which is in line with the stated objective of reaching 10 million units in the next five years.

The proposed R&D centre at Kukas will be the largest two-wheeler R&D facility in the country, and will employ over 500 engineers.

Hero MotoCorp reported its highest-ever quarterly volume sales of 16,42,292 units and its best-ever turnover (net sales and operating income) of Rs6,247.28 crore for the first quarter (April-June 2012) of FY'13 - a growth of 9.95 per cent year-on-year.