As a consequent to break up of the joint venture, the Hero Group agreed to buy out Honda's 26 per cent stake in HHML for Rs 3,841.83 crore. Further, following the agreement signed, Hero would be allowed to use Honda's name till 2014. However, Hero after acquiring the new brand wants to establish its individual identity as the earliest. Thus, the company is already in the working to introduce its new brand identity in London next month.
Hero would also have to pay 45 billion yen (about Rs 2,450 crore) till 2014 to the Japanese promoter till 2014.
Commenting on the milestone achieved, Hero MotoCorp Chairman Brijmohan Lall said, “It is not just a change of name, it marks the ushering in of a new era that will unlock the immense potential of this company to build its own capabilities to grow beyond boundaries and set new benchmarks."
Meanwhile, considering the new name as the new beginning for the company, Hero MotoCorp Managing Director and CEO Pawan Munjal regards this change as an era of new innovations in every respect including technology and product development, customer satisfaction and expanding our footprint across global markets.
Keen on introducing its new global identity as soon as possible, the company already hired global brand and innovation specialist Wolff Olins to create its new brand identity. Wolff Olins was responsible to create a complete new identity that would include the brand architecture, name, logo and positioning. Further, the responsibility of launching and establishment of the new company was given to Law & Kenneth (L&K), hired as a creative partner, in May.