In keeping with its aggressive plans for global expansion, Hero MotoCorp Ltd (HMCL) has set up its first-ever equity partnership in an overseas company. Targeting to achieve annual sales of 10 million units in the next few years, the company is investing US$ 25 million for a total stake of 49.2% in the share capital of US-based partner Erik Buell Racing (EBR). The first tranche of US $15 million has already been invested by HMCL. The second tranche of US $10 million is proposed to be invested within the next nine months. The investment in EBR is being done through Hero MotoCorp’s newly-incorporated wholly-owned American subsidiary, HMCL (NA). Terming the equity participation at EBR as a natural progression of the company’s stragety to turn global, Mr. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp., mentioned that the move will further extend the company’s strategic alliance. The plan also involves spreading a footprint in new international markets, and extend R&D centres at multiple locations around the world, developing two-wheelers for global markets. Stressing on growth coming through organic and inorganic channels, Mr Munjal averred that his company’s fully-owned new overseas subsidiaries such as the one in the US and in Netherlands will play important roles in our future overseas acquisitions and investments. With the equity partnership with EBR, Hero MotoCorp will now have representations on the EBR board with two directors and one observer. However, there will be no organizational changes at EBR, and Mr. Erik Buell will continue to be its Chairman and CEO. As part of the alliance, HMCL would receive support in terms of cutting-edge technology and design to develop future models from EBR, which specializes in designing and manufacturing powerful and high-speed motorcycles. Through this alliance, Hero MotoCorp has also for the first time entered the exciting world of international motorcycle racing. The company marked its foray into the racing arena last year by sponsoring two teams: Team Hero and AMSOIL Hero – a first by any Indian two-wheeler company at the AMA Pro Racing National Guard Superbikes Championship. This participation will continue this year as well.
In keeping with its aggressive plans for global expansion, Hero MotoCorp Ltd (HMCL) has set up its first-ever equity partnership in an overseas company. Targeting to achieve annual sales of 10 million units in the next few years, the company is investing US$ 25 million for a total stake of 49.2% in the share capital of US-based partner Erik Buell Racing (EBR). The first tranche of US $15 million has already been invested by HMCL. The second tranche of US $10 million is proposed to be invested within the next nine months. The investment in EBR is being done through Hero MotoCorp’s newly-incorporated wholly-owned American subsidiary, HMCL (NA). Terming the equity participation at EBR as a natural progression of the company’s stragety to turn global, Mr. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp., mentioned that the move will further extend the company’s strategic alliance. The plan also involves spreading a footprint in new international markets, and extend R&D centres at multiple locations around the world, developing two-wheelers for global markets. Stressing on growth coming through organic and inorganic channels, Mr Munjal averred that his company’s fully-owned new overseas subsidiaries such as the one in the US and in Netherlands will play important roles in our future overseas acquisitions and investments. With the equity partnership with EBR, Hero MotoCorp will now have representations on the EBR board with two directors and one observer. However, there will be no organizational changes at EBR, and Mr. Erik Buell will continue to be its Chairman and CEO. As part of the alliance, HMCL would receive support in terms of cutting-edge technology and design to develop future models from EBR, which specializes in designing and manufacturing powerful and high-speed motorcycles. Through this alliance, Hero MotoCorp has also for the first time entered the exciting world of international motorcycle racing. The company marked its foray into the racing arena last year by sponsoring two teams: Team Hero and AMSOIL Hero – a first by any Indian two-wheeler company at the AMA Pro Racing National Guard Superbikes Championship. This participation will continue this year as well.
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