Hero MotoCorp Ltd (HMCL) today commenced its operations in Bangladesh through a Joint Venture (JV) with the Nitol Niloy Group.
The historic Joint Venture was announced here today by Mr. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp Ltd, and Mr. Abdul Matlub Ahmad, Chairman, Nitol Niloy Group of Companies, in the presence of the Industry Minister of Bangladesh H.E. Mr. Amir Hossain Amu and the Acting High Commissioner of India in Dhaka, Mr. Sandeep Chakravorty, and Group Managing Director of Nitol Niloy Group, Mr. Abdul Musabbir Ahmad.
This is the company’s first overseas joint venture to set up a two-wheeler manufacturing plant outside of India, since it commenced its solo journey almost three years ago. Hero will hold majority stake of 55 per cent in the new JV while the Nitol Niloy Group will hold the rest 45 per cent stake. There will be a total equity injection of US$ 12.6 million in a ratio of 55:45 over a period of two years. The new venture will have a CAPEX of US$ 23.2 million in the first year of its operation (Financial Year 2014-15) and a total investment of US$40 million over the next five years.
While the manufacturing plant will be operational by the second quarter of FY 2015-16, the Hero range of two-wheelers are already being made available in Bangladesh through the initial 50 retail outlets. Mr. Munjal today inaugurated the first of the flagship Hero showrooms in Dhaka. More outlets are also being rapidly added in markets across the country.
The range of Hero two-wheelers being made available in the country include HF Dawn & HF Deluxe, Splendor+, Splendor Pro, Splendor iSmart, Passion Pro, Super Splendor, Glamour, Xtreme, Hunk, and the Pleasure.
Hero is providing a 5-year warranty on all these models in Bangladesh