Indian 2-wheeler giant Hero MotoCorp enters BD

India’s largest two-wheeler maker Hero MotoCorp Monday signed a joint venture deal with Bangladesh’s Nitol Niloy Group to invest around US$ 40 million (over Rs 2.40 billion) in the next five years.
Both the companies have planned to set up a manufacturing plant in Bangladesh, which will be the first full-fledged manufacturing facility for the Indian two-wheeler giant outside India, according to a news agency.
Hero MotoCorp Managing Director and CEO Pawan Munjal and Nitol Niloy Group Chairman Abdul Matlub Ahmad signed the deal on their respective sides at Ruposhi Bangla Hotel.
 Industries Minister Amir Hossain Amu and Indian Deputy High Commissioner Sandeep Chakravorty spoke at the signing ceremony.
 Hero MotoCorp will hold 55 per cent stake and Nitol Niloy Group to hold rest in the joint venture to have a new manufacturing facility with an annual production capacity of 1.5 lakh units when it will become fully functional by the second quarter of 2015-16.
 The Indian company has a target to have around 20 per cent of market share in Bangladesh in the first year of their operation.
 Both the companies think the joint venture will help provide technologically advanced, innovative and fuel efficient two-wheelers for customers in Bangladesh.