The newly formed Hero MotoCorp stated on Tuesday that it is considering investing as much as $1 billion in its operations over a period of next five years. Hero MotoCorp has been formed by the Munjals, the Indian promoters of Hero Honda.
While speaking to reporters in London, Pawan Munjal, MD and CEO of Hero MotoCorp said that the amount of the currently planned investment is equal to the amount invested by the firm over a period of last 27 years. The firm has recently parted ways with Japanese Honda group, buying Honda’s 26 percent stake in Hero Honda.
According to Mr. Munjal, the company will aim to 10 million units annually, over a period of next five years. The firm is now eying to generate an annual turnover of around $10 billion with exports accounting for 10 percent of total turnover.
While further elaborating on company’s strategy in the Indian market, Mr. Munjal said, "The company has already identified 30 countries as 'low hanging fruits' in Latin America, Africa and South East Asia." He added that the company is looking at all kind of options in these overseas markets that include acquisition or acquiring minority stakes in the existing companies or setting up new manufacturing facilities.
Earlier, the joint venture with Honda was barring firm’s expansion in the major foreign markets as it was only allowed to sell bikes in neighboring countries like Bangladesh and Sri Lanka.
