Sunday, August 30, 2015

HERO buys 49.2% stakes in Erik Buell Racing


Hero MotoCorp had already joined hand with EBR last year for a joint venture, but now Hero had gone a step ahead and bought 49.2% stakes in EBR for Rs 150.45 crore.
          Trying to to capture more market in the future days,Hero announced a couple of days before that it had bought 49.2% stakes in Erik Buell Racing for $25 Million i.e approx Rs 150.45 crore.
Hero will have its owns people on the EBR board which includes two directors and one observer.
                 "The equity partnership with EBR is reflective of our long-term vision of transforming Hero MotoCorp to a truly global two-wheeler major with footprints spread across continents, offering a wide range of technologically advanced two-wheelers," said Pawan Munjal, Hero MotoCorp CEO while talking to the Economic Times.
 The largest 2 wheeler manufacturer of the country joined hands with EBR to step foot in the 250cc segment for the Indian market & it could be possible that their combined concept 250cc Bike be unveiled at the 2014 Auto Expo in Delhi.

With this deal, Hero has become the third Indian motorcycle manufacturer to posses an alliance with foreign two-wheeler manufacturer after Bajaj-KTM and TVS-BMW but is the only company to boast an alliance with an American brand. This deal is vital for Hero as EBR is the firm from its other tie-ups which holds the most experience in terms of designing and manufacturing. 

Hero has started to expand its brand reach around the world and has started operations in Latin America and Africa to boost its sales but the need of the hour for it is to introduce new models for the Indian market to maintain its crown. Whether or not it can maintain its supremacy in the coming years and how far would this deal prove beneficial only time will tell but for the moment it seems to be a good move by Hero. 
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