As per the restructuring plan of the group it is going to create one supra-board of directors that would oversee the activities of the four family group companies.
This would be over and above the individual boards of the various group firms. The new brand name for the group would be Hero Eco.
The latest restructuring plan comes close on the heels of the largest two-wheeler company Hero MotoCorp promoted by Brij Mohan Lal (uncle of Vijay Munjal chairman Hero Eco) getting a new brand identity after it separated from Japanese partner Honda Motors.
We are at a cusp stage of our growth and currently there are different identities associated with different brands of ours. The idea is to get every business under a common umbrella, managing director of the newly formed entity Hero Eco Naveen Munjal told FE.
When asked what would be the precise composition of the new supra-board that would oversee activities of the other family firms he said, It is still at an early stage. We would decide as we go forward.
Meanwhile, Munjal said that Hero Electric could be raising funds through an initial public offering or an overseas listing in the next five years to fund its growth plans going forward. Recently the company acquired 100% stake in UK-based Ultra Motors in an effort to increase its footprint in the overseas markets. At present, the acquired firm has three manufacturing facilities in China and Taiwan besides presence in six countries and sales distributorship in 22. Munjal also said that they are also considering setting up a separate business entity for its overseas operations under brand Hero.
In future we would want up to 50% of our sales to come from international markets, Munjal said. Though exporting barely a few hundred units at present, Hero Electric expects to start shipping over 15,000 units per year into countries such as Switzerland, Canada and parts of North America and Western Europe, Munjal added. At present, the group has one manufacturing unit in Ludhiana where it produces around 65,000 units of electric two-wheelers and 9-lakh bicycles.
The group has also identified entering the niche segment of high-end bicycles with brand name Winn apart from increasing its footprint in high-end medical equipment market under Mediva. The total investment the group would make in the next five years is R450 crore.