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Hero MotoCorp enters Bangladesh

Hero MotoCorp enters Bangladesh

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Hero MotoCorp has entered the Bangladesh market by inking a joint venture with Nitol Niloy Group to locally manufacture two-wheelers. The joint venture company, in which Hero will hold a 55 per cent stake, will erect a manufacturing facility to locally manufacture two-wheelers. First overseas joint venture to set up a two wheeler manufacturing plant outside of India, since Hero MotoCorp commenced its solo journey three years ago, after ending its long standing association with Honda Motor Company, Hero’s wholly-owned subsidiary HMCL Netherlands BV will hold the majority stake of 55 per cent in the new JV to be precise. 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 (FY 2014-15) and a total investment of US $40 million over the next five years. The debut of Hero in Bangladesh is driven by 11 two-wheeler models including HF, Splendor, Passion, Glamour, Xtreme, Hunk and Pleasure. Backed by a five-year warranty, the models will be initially marketed through 50 outlets.
Hero two-wheelers already sell in as many as 18 countries including Peru and Ecuador in South America; Guatemala, Honduras, El Salvador in Central America; Kenya, Mozambique, Tanzania and Uganda in East Africa; Burkina Faso, Ivory Coast, Congo and Angola in West Africa and most recently, Turkey and Egypt. The company has also established its international assembly units in Kenya, Tanzania and Uganda in East Africa through its distributors. The company sold a record 6.25 million two-wheelers in the Financial Year 2013-14.

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