Hero Motors on Tuesday signed a MoU with BRP-Powertrain for supply of automotive transmissions worth $250 million over the next five years.
The move is viewed as an effort to strengthen its position as a global manufacturing base for BRP-Powertrain, "In the recessionary conditions, big companies are outsourcing work which they would not have done otherwise. We are poised to grow through this development," says Pankaj Munjal, managing director, Hero Motors, adding that the transmission would be manufactured at the company's unit in Ghaziabad that has an installed capacity of one lakh units.
In the last two years, Hero Motors had already invested Rs 45 crore along with BRP-Powertrain for setting up a base in the company's Ghaziabad unit for making automotive transmissions.
Hero Group would simultaneously invest Rs 100 crore in the next one year to partly scale up the transmission producing capacity at Ghaziabad and to partly augment the manufacturing capacity of automotive discs which it produces through a joint venture with Japanese auto firm Sumitomo.
The move is viewed as an effort to strengthen its position as a global manufacturing base for BRP-Powertrain, "In the recessionary conditions, big companies are outsourcing work which they would not have done otherwise. We are poised to grow through this development," says Pankaj Munjal, managing director, Hero Motors, adding that the transmission would be manufactured at the company's unit in Ghaziabad that has an installed capacity of one lakh units.
In the last two years, Hero Motors had already invested Rs 45 crore along with BRP-Powertrain for setting up a base in the company's Ghaziabad unit for making automotive transmissions.
Hero Group would simultaneously invest Rs 100 crore in the next one year to partly scale up the transmission producing capacity at Ghaziabad and to partly augment the manufacturing capacity of automotive discs which it produces through a joint venture with Japanese auto firm Sumitomo.
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