India's largest two-wheeler maker Hero MotoCorp today said it will invest Rs 160 crore to set up 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 Rs 160 crore," Hero MotoCorp (HMC) Managing Director and Chief Executive Officer Pawan Munjal said in a statement.

Munjal, who was speaking at the company's Global Supply Chain Partners Conference-2012 (GSCPC) at St Petersburg in Russia, said the GPC is expected to be operational in the third quarter of 2013-14 and will initially employ 400 personnel.

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

In June, the company had announced an investment of Rs 2,500 crore to set up two new plants, ramp up capacities of existing plants and also to increase R&D activities.

The company is setting up its fifth plant at Halol in Gujarat, in addition to the fourth plant at Neemrana in Rajasthan. With the expansion, total installed capacity of the company would touch more than nine million units in two years' time as part of its plans to reach 10 million units in the
next five years.

At present, the company produces 70 lakh units annually from its three manufacturing plants at Dharuhera and Gurgaon in Haryana, and Haridwar in Uttarakhand.

The company had said it is looking at USD 10 billion turnover in the next five years and sales of 10 million units with exports to be about 10% of its total sales.