Hero looks for a new technology partner

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Hero looks for a new technology partner
Last December, after the Munjals promoted Hero Group and Honda decided to separate ways, the Hero group has been looking for partners globally to source technology and design expertise. Honda's 26% stake in the company was brought by an Indian partner for Rs 3,841.83 crore. However, the group has entered into a licensing agreement with Honda till 2014. This would enable it to source new products from the Japanese counterpart.

Hero is keen to produce an indigenous motor cycle in the coming years. It has created strong R&D facility in the country and is looking to invest Rs 250 crore in 2010-11. This spent matches the industry norms of a minimum spent of 1.2-1.5% of net sales on R&D.

As always, the company will focus more on the mass computing segment and will continue launching seven to eight models in a year. However, the premium segment has seen a considerable rise over the years for the company with a 30% growth in the last fiscal.

The company plans to come up with one more plant with an investment of Rs 500 crore, in addition to three plants already present in Dehradun, Haridwar and Gurgaon. This is in lines with the growth of estimation of sales in this financial year.

After the group ended ties with Honda, it is now exploring the international market. Previously, the agreement with Honda prevented it from scaling up exports globally.

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