Hero Motor in $40m BD joint venture deal23 April 2014 bdnews24.com
Indian motorcycle manufacturer Hero Motor Corporation and Bangladesh's Nitol-Niloy Group will jointly set up a plant in Bangladesh.
The two companies inked the deal of the joint venture project in Dhaka on Monday.
Industries Minister Amir Hossain Amu said at the signing ceremony that he hoped to see one day the people of Bangladesh using locally manufactured automobiles.
"We want the people to use vehicles marked 'Made in Bangladesh'."
Hero Motor Corp will invest $40 million in the joint venture.
The minister assured all sorts of policy supports for foreign investment.
"We want to realise th dream of manufacturing automobiles of homegrown Bangladeshi brands. And we will lend all out cooperation to those entrepreneurs who will come forward in this journey."
Nitol-Niloy Group's Chairman Abdul Matlub Ahmed, Hero Motor Corp CEO Pawam Munjal and Deputy High Commissioner of India Sandwip Chakravarty were present in the signing ceremony.
This will be the first plant of Hero outside India, which would start operating in the second quarter of 2015-16 financial year, said Hero Moror's CEO Munjal.
The plant will manufacture 150,000 motorcycles a year, he added.
Hero Motor now manufactures 750,000 motorcycles a year from its three plants in India. "The people of Bangladesh will now get Hero (motorcycles) manufactured in Bangladesh," said Ahmed at the signing ceremony.