Why Hero MotoCorp Becomes The First To Shutdown In India

Last updated on April 23rd, 2021 at 08:54 am

Amidst the country surging under pressure from an evolving mutant of Covid-19, the Indian company Hero MotoCorp has become the first one to shut down its operations. 

The company has taken a sensible and bold step as India’s first major Indian manufacturer to announce a temporary suspension of production as a precautionary measure. This is when the government continues to maintain a stand that there won’t be a nationwide lockdown.

The company made a public statement stating that, “it had decided to proactively halt operations temporarily at all of its manufacturing facilities across the country, including its Global Parts Center (GPC), in view of the ongoing escalation in the spread of Covid-19 across the country.”

The new Covid-19 Indian mutation is air borne and catching onto the population quickly. Closure of its plants will not throw its manufacturing schedules out of rhythm.  The company has devised a phase wise method of shutting itself down. 

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In an official statement, the company representative has stated that they will start with each of its plants and GPC remaining shut off for a span of four days in a staggered manner between April 22 and May 1, 2021. It is confident that the shutdown will not impact the company’s ability to meet the demand and that the production loss will be compensated during the remainder of the quarter.

The company has a massive manufacturing capacity divided between six of its plants with a total manufacturing capacity of 11.6 million units. Its plants are located in Haridwar, Dharuhera, Gurgaon, Neemrana, Vadodara and Chittoor.

Hero MotoCorp is one of the biggest two-wheeler manufacturers in the world. The company’s move could be seen as a sensible decision to save the lives of more than 20,000 solid workforce. According to the company’s annual report for the year ended March 2020, Hero MotoCorp has 8,599 permanent employees and 21,091 employees hired on temporary/contractual or casual basis.

The company is planning to utilize the shutdown time to carry out maintenance work in its manufacturing plants.