December 02, 2008

Hero Group inks 40:60 JV with Daimler AG for truck unit

It is reported that Hero Group has signed 40:60 JV with Daimler AG to form new company called Daimler Hero Corporation Limited with an investment of INR 4,400 crore and is scouting for locations for this Greenfield venture.

Mr Sunil Kant Munjal chairman of Daimler Hero Corporation Limited said that "It could be Chennai, Pune or Haryana. A decision will be taken within the next 2 months."

He added that it plans to manufacture light and medium CVs initially, and heavy duty vehicles by 2012. Mr Munjal said that "There are multiple drivers for the truck industry in India now, like the economy growing fast, better roads connectivity ensuring that large volumes can be transported, modernization of supply chains, improvement in logistics and specialized application needs in the pre mixed cement and mining industries."

Mr Andreas Renschler member of Daimler AG board of management and also head of Daimler trucks said that "Our strategy in India is two pronged. First, we plan to target the country, which is a key high growth market. Next is to make India a production base for the export market."