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India’s Hero MotoCorp Ltd (HMCL) has bought a 49.2 per cent stake in US-based Erik Buell Racing (EBR).
Pawan Munjal, the Director and CEO of Hero MotoCorp said the $25 million deal means the company is ready for international markets.
“As we go on spreading our footprint in new international markets, we will look at having extended centres of our own R&D at multiple locations around the world, developing two-wheelers for our global customers. Our evolving relationship with EBR is an initiative in that direction,” Munjal told reporters in New Delhi.
The initial amount of $15 million has already been paid to EBR and the rest will be invested within the next nine months.
“This is the first time that Hero MotoCorp (HMC) is buying a stake in a company outside India. This is the first step in globalisation of the HMC brand,” said Munjal.
The company is looking to set up two assembly plants in Africa – in Kenya and Nigeria.
Hero Motocorp Ltd is the world’s largest two-wheeler maker.