Mr Pankaj Munjal, CMD, Hero Group said, "This definitely is a big leap for us and we are quite excited about this new development. With this win we are not only forging a strong relationship with a global two wheeler leader but also reaffirming Hero's proficiency and expertise in specialized manufacturing We look forward to a long term association with our patrons."
Incidentally, Hero Motors is already the supplier for high-end transmission components to motorcycle brands like BMW and Harley-Davidson as well. The company says to follow the best quality system with zero ppm and high end products. This has helped the component maker win over several European manufacturers as a preferred supplier in the transmission business.
In order to keep up with the high standards of quality, Hero has invested Rs. 150 crore in establishing world class infrastructure, while a similar amount is expected to be invested in the international market, where it plans to scale up operations.
Furthermore, Hero Motors is looking to establish its footprint in Europe and has an office setup in Vienna-Austria that has been operational for over a year. The company's next move includes moving into a strategic joint venture with a European technocrat in order to have a designing, development, prototyping and testing back up and eventually mass market manufacturing done in India.
The JV will help the Indian manufacturer offer the best of technology on its components to different OEMs, apart from its own products. Manufacturing in India also means, Hero can offer a more competitive pricing over their European rivals.
Interestingly, almost 80 per cent of the Hero Group's business is with global market leaders in the bike business.
