Chandigarh: Electronic bike maker Hero Electric plans an overseas acquisition of a motor and controller components maker in electronic vehicle segment.
“We are in talks with three or four foreign companies, which are in the field of motor and controller parts, for the purpose of acquisition. However, it will take some time to get things materialised,” Hero Electric Chairman Vijay Munjal told PTI.
Munjal, however, refused to divulge the names of the companies with which Hero Electric was negotiating.
The company, at present, is sourcing motor and controller components from China, which include battery and its charger that are the critical parts for an electronic bike.
Hero Electric, a subsidiary of Hero Exports, will also be hived off as a separate company. “We are in the process of hiving off Hero Electric Devices Private Limited as an independent company and it will be done soon,” Munjal said.
Enthused over achieving tremendous response for its products, the company has decided to infuse Rs 80 crore in capacity expansion, setting up a research and development centre at Ludhiana and ramping up dealers’ network.
“Presently our e-bike manufacturing capacity is 220 units per day per shift which is expected to reach 440 units per day per shift after next two years. Besides, we also plan to expand our dealers’ network to 300,” he said.
The company is aiming to sell 70,000 units in this year, against selling 20,000 units during first year of its operation, he said.
Considering South India as a potential market for e-bikes, the company has targeted to sell 25,000 units in the region in this year.
“Southern states have contributed 40% to our total sales and as per industry reports, e-bike market is estimated to grow by 200% in 2008-09. Based on it, we aim to sell 25,000 units in southern part of the country in this fiscal,” he said.
The company is also planning to launch new models with higher speed (45 km and above) next month.
“We have a complete line up of models to cater to the specific demands and taste of the customers and now models with higher speeds and higher ranges are on the anvil. By the end of this year, we will have 5-6 models in various styles and colours,” he said.