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The country' largest two-wheeler maker Hero MotoCorp today said it plans to have in place 20 manufacturing/assembly facilities to expand presence to 50 countries across the world by the end of the decade. The company’s turnover per annum is targeted for increase to Rs 60,000 crore in this period.
As part of its ambitious global expansion plans, to begin with Hero MotoCorp will set up six assembly lines spread across three continents in 2014.
Pawan Munjal, managing director and chief executive officer, Hero MotoCorp said, "We will be selling in 50-plus countries by 2020. To top it all, I am talking of an annual turnover of Rs 60,000 crore.” The company's turnover was around Rs 24,000 crore in the last financial year.
The company, which had recently forayed into the African continent by launching motorcycles in Kenya, said it will be entering more new markets. Hero would launch the brand in 10 more markets by the end of the current fiscal. Earlier, its export market was restricted to Colombia in Latin America and neighbouring countries of Sri Lanka, Bangladesh and Nepal.
"Between January and March 2014, we will launch some more additional markets, some in Africa, some in the Caribbean and Central American countries," said Munjal. The company is aiming for 10 per cent of our sales to come from export markets by 2017
Hero MotoCorp, which rolled out its 50 millionth bike here today, said it is now eyeing the 100 million mark. Munjal said: "By the year 2020, we will have annual production of 12 million motorcycles and scooters every year. This will come from 20 assembly lines inside the country and outside the country."
For the year ended March 31, 2013, its total production was 6.2 million units. Currently, the company rolls out bikes from its three plants located at Gurgaon, Daruhera and Haridwar. Last year the company had announced that it will set up its fourth plant at Neemrana in Rajasthan and fifth plant in Gujarat, as part of a Rs 2,575 crore investment to enhance production and R&D capability.
The company plans to launch twelve new models in the next two quarters, starting September. "In next two quarters, we plan to offer more than a dozen new products to our customers. We are now ready, we will be up and running from September," Munjal said.
The new offerings would be across the entire product range of Hero MotoCorp, Munjal said, adding the company has also made a lot of progress in its R&D front to deliver new products. "Couple of weeks ago, we test-fired an engine first time ever at HeroMotoCorp," he said.
The company has been doing a fair amount of work on R&D at Daruhera and Gurgaon but most of the work on such as frame and chassis, he said.
Hero MotoCorp has also initiated project Leap 20 with McKinsey to gain leadership in profitability. Hero is eyeing 20 per cent EBITDA margin in the next few years.
