Hero MotoCorp enters Bangladesh; to set up manufacturing plant

The home-grown two-wheeler giant, Hero MotoCorp has commenced its operations in Bangladesh under a joint venture with the Nitol Niloy Group. The company aims to mark its global presence across 50 countries by 2020. Though, the company already has its presence in different countries, this is the first overseas JV to establish a manufacturing unit outside India, since the company's separation from Honda three years back.

Hero bikes will be sold through 50 retail outlets, and the manufacturing unit will be operational by the second quarter of FY 2015-16. The company will open more outlets across the nation, and offer models such as entry-level 100 bikes - Splendor+, Splendor iSmart, Splendor Pro, HF Dawn & HF Deluxe, Passion Pro, the deluxe range - 125cc Super Splendor and Glamour and the premium segment 150cc Xtreme and Hunk along with the 100cc scooter Pleasure.

In the joint venture, Hero will be the major stake holder with 55 percent shares, while the Nitol Niloy Group will hold 45 percent 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 collaboration will have a CAPEX of US$ 23.2 million in its first financial year (2014-2015), and a total investment of US$ 40 million in next five years.