Hero MotoCorp looking for fresh technology, acquisitions: report

Hero MotoCorp Ltd (HMCL), the world's largest two-wheeler manufacturer, which early in September commenced the construction of a Rs450-crore innovation centre in Rajasthan, is looking for acquisitions to expand its technology inventory.

The company, which announced the commencement of construction of the `Hero Centre of Global Innovation and Research & Design (R&D)' at Kukas, near Jaipur in Rajasthan after signing a series of technology partnerships, is still open to acquiring technology and two-wheeler makers, as part of its global expansion strategy, according to media reports.

The centre, being set up in Rajasthan, marks a significant milestone in the journey towards next-generation technological excellence, according to Hero MotoCorp CEO Pawan Munjal.

Hero MotoCorp has also significantly scaled up its in-house research and design capabilities with over 400 highly-skilled engineers working on future product line-up.

The company, which entered into a technology sourcing pact with US-based Erik Buell Racing (EBR) last year and picked up 49.2-per cent stake in the company, for $25 million, in July this year, said it is still looking for technology all around.

Last year, Hero had also entered into an alliance with Austria-based engine developer AVL to enhance capability across various segments in addition to tying up with Italian two-wheeler design firm Engines Engineering as a partner for developing next-generation product line-up.

With cash reserves of about Rs3,500 crore, Hero MotoCorp has been strengthening both its production capacity and R&D set-up ever since its promoter, the B M Munjal family, agreed to buy out the entire 26-per cent stake of Honda in their erstwhile joint venture Hero Honda for Rs3,841.83 crore in December 2010.

The two-wheeler maker has also set ambitious targets to expand in global markets.

In August this year, the company announced plans to enter 50 new markets by 2020 with a target of 20 manufacturing facilities across the globe and an overall annual turnover of Rs60,000 crore.

The company in July announced its foray into the African continent with the launch of its brand and products in Kenya where it has also set up an assembly unit.

A month later, it entered Peru with the launch of the 'Hero' brand and its range of two-wheelers in the Latin American nation.