3 September, 2011

Mint report says that Hero MotoCorp Ltd (HMCL) (earlier Hero Honda) plans to set up its manufacturing facility in Gujarat as per a report by a Mumbai-based brokerage quoting the company’s chairman Brijmohan Lall Munjal.

“The Gujarat plant will mostly serve export markets. The company will start exporting two-wheelers to new markets from the next quarter. ” analysts Jinesh Gandhi and Mansi Varma wrote in the report quoting Munjal. HMCL is looking for financial and infrastructure incentives for the new plants.

“It (Hero) has identified Africa, South-East Asia and Latin America as key markets for exports, and expects to start exporting to some countries in Africa by 3QFY12 (third quarter of fiscal year 2012). It targets export volume contribution of 10% (of its total sales) over the next 5-6 years…,” the Motilal analysts wrote. “HMCL’s teams have visited these potential markets and are getting encouraging response from the local distributors.”