Hero MotoCorp, the country’s largest two-wheeler maker has launched its operations in Bangladesh through a Joint Venture (JV) with the reputed Nitol Niloy Group. Hero MotoCorp has rapidly expanded its global footprint, this is the company's first overseas joint venture to set up a two-wheeler manufacturing plant outside of India, since it commenced its solo journey almost three years ago.
Hero will hold majority stake of 55% in the new JV while the Nitol Niloy Group will hold the rest 45% stake. There will be a total equity injection of $12.6 million in a ratio of 55:45 over a period of two years. The new venture will have a CAPEX of $ 23.2 million in the first year of its operation (Financial Year 2014-15) and a total investment of $40 million over the next five years.
Hero MotoCorp is the World’s single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors in 1984. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.
