Hero MotoCorp is planning to set up a manufacturing plant in a JV with Nitol Niloy Group, in Bangladesh.

Nitol Niloy Group is a Bangladesh-based company. In the JV, Hero MotoCorp will hold 55 per cent stake and the remaining 45 per cent will be held with Nitol Niloy Group. The JV will provide technologically advanced, innovative, and fuel efficient two-wheelers for customers in Bangladesh.

The manufacturing unit will have an annual capacity of 1.5 lakh units, when it will be fully functional by the second quarter of FY16. The proposed unit will be the first unit of the company in Bangladesh.

There will be a total equity injection of $12.6 million (approx Rs 76.04 crore) in a ratio of 55:45 over a period of two years. The new venture will have a capex of $23.2 million (Rs 132.96 crore) in the first year of its operation, while it will invest a total of $40 million (approx Rs 241.32 crore) over the next five years.

In 2013, Hero MotoCorp had unveiled plans to have 50 new markets by 2020, with a target of 20 manufacturing facilities across the globe. As part of its capex plan, the company intended to have six assembly lines spread across three continents, by 2014.

At present, the company has three manufacturing facilities in India and is all set to complete the fourth facility at Neemrana, Rajasthan, thereby taking its total installed capacity to over 7.5 million units.

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