Hero MotoCorp Ltd, India's leading two-wheeler producer by sales, will spend Rs 950 crore to build its fourth production unit, a global parts centre and state-of-the-art research & development (R&D) facility in Rajasthan.

The new two-wheeler production unit would be erected on a 47-acre site at Neemrana, Rajasthan, at an investment of Rs 400 crore, while the global parts centre would be built at the same location at an investment of Rs 150 crore. The new R&D facility will come up at a 250-acre site at Kukas near Jaipur at an investment of another Rs 400 crore.

The construction of the new production plant and global parts center has already begun. Announcing the commencement of the work, Hero MotoCorp CEO & MD Pawan Munjal said, "The commencement of work on the new plant is clearly indicative of our intention and strategy for the future."

Mr. Munjal also expressed hope that the market sentiment would revive sooner than later, and the new manufacturing facility would enable the company to meet the rise in demand.

The new manufacturing unit, which is expected to become operational by the end of FY14, would have a capacity to produce an estimated of around 750,000 units per year.

Hero MotoCorp shares gained 0.60 per cent to close at Rs 1,846.35 a piece at the Bombay Stock Exchange (BSE) on Monday.