Hero Motocorp sets foot in Bangladesh

India’s largest two-wheeler manufacturer Hero Motocorp Ltd (HMCL) has marked its foray in Bangladesh. The bike manufacturer has commenced its operations in the country by partnering with the Nitol Niloy Group. This is HMCL’s first overseas joint venture (JV) to set up a two-wheeler manufacturing plant outside of India, since it commenced its solo journey almost three years ago.

Pawan Munjal, Managing Director and Chief Executive Officer, HMCL, has inaugurated the first flagship Hero showroom in Dhaka. Speaking on this occasion he says, “I am delighted to have the Nitol Niloy Group come on board as our partner in this market. I am sure with their rich experience in this market we will be able to provide convenient, fuel-efficient mobility to every customer.”

The two-wheeler manufacturing plant will be operational in the second quarter of the financial year 2015-2016. HMCL will hold majority stake of 55 per cent in this new JV, while the Nitol Niloy Group will hold the rest 45 per cent stake. There will be a total equity injection of Rs 76.09 crore in a ratio of 55:45 over a period of two years. The new venture will have a CAPEX of Rs 140.10 crore in the first year of its operation (Financial Year 2014-15) and a total investment of Rs 241.15 crore over the next five years.

The Hero range of two-wheelers are currently being made available in Bangladesh through 50 outlets. The range includes models such as the entry-level segment 100cc bikes- Hero HF Dawn and Hero HF Deluxe, Hero Splendor+, Hero Splendor Pro, Hero Splendor iSmart, Hero Passion Pro, the deluxe segment Hero 125cc Super Splendor and Hero 125cc Glamour and the premium segment Hero 150cc Xtreme and Hero 150cc Hunk, and the 100-cc scooter Pleasure. Hero will also offer a five-year warranty on all of these models in Bangladesh.

As of today, Hero two-wheelers sell in 18 countries across the world. The company has also established its international assembly units in countries such as Kenya, Tanzania and Uganda through its distributors. The bike manufacturer has sold a record 60.25 lakh two-wheelers in the financial year 2013-14 – the highest-ever by any single two-wheeler manufacturer in a financial year.