HeroMoto announces joint venture with Magneti Marelli
The country's largest motorcycle maker HeroMoto Corp today announced a joint venture with Milan-based Magneti Marelli for manufacture of new generation powertrains.
Both partners will be investing a total of $8.5 million in the joint venture (JV) firm - HMC-MM Auto Ltd - in the next three years and around $27 million over the next ten years.
"We have decided to form a JV with Magneti Marelli for next generation fuel injection systems...a total equity injection of $8.5 million in ratio of 60:40 will be injected in the JV over a period of three years," Hero MotoCorp managing director and CEO Pawan Munjal told reporters here.
He added the JV company would start manufacturing by the end of 2014 and is targeting $200 million in turnover in the next ten years.
Hero MotoCorp will hold 60 per cent in the JV while the Italian firm will have 40 per cent stake.
The JV would also be open to supplying components to other manufactures as well, Mr Munjal said.
HeroMotoCorp has already forged alliances with US based Erik Buell Racing (EBR) and Austria's AVL to enhance its R&D capabilities.
