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Hero group to enter into super bikes segment
Hero Honda Motors, the flagship company and the No.1 two wheeler maker of the country, will be owned and managed by Brijmohan Lall Munjal family with all the 26% stake in the company. His sons Pawan Kant, Sunil Kant, Suman Kant and late Raman Kant"s family will have a combined ownership.
Hero Motors owned by Pankaj Munjal and who is the chief auto component supplier to Hero Motors, is the nephew of group-chief Brijmohan Lall. Pankag is on the urge of manufacturing high-powered bikes in India and in talks with global bike giants like Harley Davidson. This means that along with Hero Honda, we will have another company with the Hero tag producing motorbikes.
India has got super bikes as CBU say, Suzuki Hayabusa and Honda CB1000RR. And Bajaj has been a key player with already in tie up with Kawaski, rolled out Ninja 250cc super bike. And now, some of the global super bike makers have been watching the country's potential market and are eager to open up shops here. And the result, Harley Davidson came up with 12 models and distributes it across the country with a handful of dealers in major cities.
According to Pankaj Munjal, the company aims to become a integrated solution provider for the global auto industry. Also, Hero Motors is in talks with a transmission company in Germany and has appointed NM Rothschild bank for the proposed transaction. After the split, Hero Motors are now free to have alliance with auto giants besides Honda in order to take their business to newer and higher planes.
Hero Motors is expert in the transmission of recreation products and has got $ 1.5 billion addressable market. It has also got Hero Cycles which had been backing the company during its early days.
Hero Motors is likely to put in a capital of above Rs.500 crore which will be backed up either by the Hero Cycles, the sister concern of Hero Motors, or through public offering and also NM Rothschild, the investment bank taking care of Hero Motors deals, may likely suggest plans for funding.
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