Hero MotoCorp, Nitol Niloy to set up bike plant in BD

Indian Hero MotoCorp Limited is set to join hands with Bangladesh’s Nitol Niloy Group to build its first overseas manufacturing plant here with an initial joint investment of $ 40 million. 

“This is an effort to provide modern and quality motorcycles here at an affordable cost,” Abdul Matlub Ahmad, Chairman of Nitol Niloy Group, told UNB on Sunday. 

Both the groups will sign a joint investment agreement in the city on Monday. Brijmohan Lall Munjal, Chairman of the Hero MotoCorp and Abdul Matlub Ahmad, will sign the deal on behalf of their respective sides. 

The Company plans to introduce 11 popular Hero motorcycles and scooters models in Bangladesh which will be marketed through 50 outlets initially, said another official adding that it has a plan to increase the number of outlets gradually. 

Matlub, when asked, did not elaborate the investment and manufacturing plan. He, however, hoped that the joint venture would contribute to the overall development of the country with consequent growth of local ancillary industry and suppliers and generation of sustainable direct and indirect employment. 

Responding to a question, he said the buyers for the first time in Bangladesh will get a five-year warranty on all products.

Sources said Hero MotoCorp will hold majority stake of 55% in the joint venture. Hero MotoCorp Ltd, formerly known as Hero Honda Motors Limited, is the world’s largest manufacturer of two-wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the ‘World No.1’ two-wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.