Hero scouts for acquisition for electric vehicle venture

Written by Agencies | New Delhi, April 30: | Updated: Apr 30 2008, 21:48pm hrs
After parting ways with UK-based Ultra Motors, the Hero Group is scouting for acquisition besides expanding its capabilities to manufacture critical components in its electric vehicle venture entailing an investment of about Rs 80 crore.

"The idea is to have our own capability of manufacturing critical components like the motor controller. While the short and medium-term requirements have been taken care of through contracts, we are looking at either acquisitions or setting up our own capacity to make these parts," Hero Electric Managing Director Naveen Munjal said.

He said the company is in talks with a couple of firms while some options are still being evaluated.

"In the next 3-4 months we will have a concrete idea as to whether we decide to go for a greenfield or settle for acquisition. If we decide for acquisitions, it will not be big ones but the size will be in the range of Rs 15-20 crore," he said, adding talks were also on for technical cooperation with some overseas firms.

The Hero Group had recently fallen apart with its erstwhile JV partner Ultra Motors following differences on technical cooperation and product strategies.

Munjal said as Hero Electric moves ahead on its own, the company would be expanding production capacity at its Ludhiana plant and also strengthen its R&D activities.