Hero Motors Company (HMC) has set a target of more than Rs 1,000 crore international revenue by FY22. Banking on the high growth across segments like bicycles, e-bikes, automotive components in the European and American markets; the Hero Motors Company is setting a target to further increase this figure by FY24.
As Pankaj M Munjal, Chairman and MD of Hero Motors Company said, “Our vertical integration strategy has created international outposts for sales, marketing and R&D over the past few years through strategic acquisitions such as Insync Bikes in the UK and HNF GmbH in Germany, which is now bearing fruits.”
Munjal also said that the Hero Motors Company has built up additional capacities and capabilities to manufacture global quality bicycles and e-bikes in India. The international back-end is now being integrated with Indian factories to shift the manufacturing to India. Traditionally, this was outsourced to China, Taiwan, Cambodia and Eastern Europe. “Banking on this futuristic strategy and a global surge in demand, we are expected to cross Rs 1,000 crore in international revenue by FY 2022,” said Munjal.
Hero Motors Company has gained a strong international footprint. The company has set a 3-year roadmap of trebling its international revenue by FY24. Along with the high demand from American, European and British market, HMC’s Indian manufacturing capacity is set to receive a major boost with the opening of the new international cycle valley plant in Punjab. The company aims to add a capacity of 4 million units per annum to the current 6 million units through the cycle valley project.
HMC has witnessed steady growth with its components manufacturing business as well. Gears, transmission and bike drive train have been steadily performing well for the company.
As Hero Motors Company reveals, the group has a robust projects RFQ pipeline of over $1 billion spread over the next 8 years. The HMC Group is looking at further augmenting its R&D and business development activities in European Union in addition to its existing JV with Hewland Engineering, a transmission and hybrid drives supplier to formula racing and high-end cars.