Hero MotoCorp Plant Shutdown: Auto companies have started getting hit by another wave of Corona virus. After Maruti Suzuki, Hero MotoCorp, the world’s leading company making two wheelers, has also decided to close all its manufacturing plants by 16 May. During this time the Global Parts Center (GPC) will also be closed. Previously, the company had talked about the temporary shutdown till May 9, but now it has been extended till May 16. Today the stock of the company is falling due to this announcement. Earlier, in view of the increasing dangers of Corona virus, the country’s largest car manufacturer Maruti Suzuki also announced the temporary shutdown of its plant by 16 May.
Share fall
Hero MotoCorp announced the closure of the manufacturing plant till May 16, the company’s stock has come down today. Hero MotoCorp shares fell nearly 1 percent today to Rs 2832.50. Earlier on Friday, the stock closed at Rs 2860.80. Today’s high has been Rs 2879.
Production is affected
Currently, the Corona virus is now impacting the production of companies as well. Hero MotoCorp’s plants will be closed for a few days across the country. Production will also be closed in the company’s GPC Global Part Center. According to the information, all the plants and GPC of the company will be closed alternately for 7 days. This decision has been taken from 9 May to 16 May. Which plant will be closed at the same time, it will be decided by looking at the situation there. During the closure of the plant, the company will do the necessary maintenance there.
What is the capacity of these plants
Hero Motocorp said in a statement that the shutdown also included the Global Parts Center (GPC) at Neemrana and the R&D plant at Jaipur – Center of Innovation and Technology (CIT). The company had last month announced temporary closure of operations at all its six manufacturing units, including Haryana-based Dharuhera and Gurugram, Chittoor in Andhra Pradesh, Haridwar in Uttarakhand, Neemrana in Rajasthan, and Halol in Gujarat. The total annual production capacity of these plants is 90 lakh units.
Watch the situation
The statement issued by the company said that the company is constantly monitoring the situation and is ready with the plan to maintain the continuity of the business. With the situation improving, it can start operating as soon as possible. All facilities can resume on May 16. Regarding corporate office, the company said that a very small number of employees have been allowed in offices on rotation basis for continuation of essential services. Most employees are work from home.
865 crore profit in the March quarter.
Hero MotoCorp has reported a profit of Rs 865 crore in the fourth quarter. The revenue from the operation has been Rs 8,686 crore. The company has announced an interim dividend of Rs 25 per share for the entire financial year. A dividend of Rs 10 per share will also be given as a special dividend. The company said that this special dividend two wheeler has been given after the total production crossed 10 crores. The market share of the company has increased in the scooter and motorcycle segment in the Corona era.
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