Hero MotoCorp launches 11 motorcycles in Bangladesh

Hero enters its first overseas joint venture for retailing with Nitol Niloy Group of Companies of Bangladesh, a firm that started off as a trading company and is better know now to market Tata commercial vehicles along with assembly and building bodies for these vehicles. This marks a concrete step for Hero MotoCorp’s expansion plans of expanding to as many as 50 countries by 2020.

The JV will have Hero holding 55 per cent stake in the company while Nitol Niloy Group will hold the remaining 45 per cent stake. A total equity injection of $12.6 million will happen over a period of two years and the venture will have a $23.2 million CAPEX in its first year of operation with a total investment of $40 million over the next five years.

Hero’s first manufacturing unit outside India will be operational by the second quarter of FY 2015–16 and their products will be made available in Bangladesh through 50 dealerships. Managing Director & Chief Executive Officer, Hero MotoCorp Ltd, Mr. Pawan Munjal inaugurated the first flagship Hero showroom in Dhaka. 100cc and 125cc bikes like the successful HF Dawn & Deluxe, Splendor range, Super Splendor, Glamour along with the 150cc Xtreme and Hunk will be sold in Bangladesh. The 100cc scooter Pleasure too will be sold in the country. All products will be available with a 5-year warranty.

Speaking on the occasion Mr. Munjal said, “The commencement of our operations in Bangladesh is a significant milestone in our strategic global expansion plans. In addition to being our first overseas joint venture, this is also where our first manufacturing plant outside of India will come up. Once operational by the second quarter of Financial Year 2015–16, the plant will have an annual capacity of 150,000 units. We are aiming to have around 20 per cent of market share here in the first year of our operation.”