Hero MotoCorp to Open Manufacturing Plants in Africa

Indian two-wheeler maker Hero MotoCorp said it has identified growth markets in Africa to set up manufacturing and assembly plants there.

"We have identified some of the countries which have potential to be high growth markets. We will probably set up assembly plants in some. In some, there may be manufacturing and in others it will probably be exports," said Sunil Kant Munjal, chairman, Hero Corporate Service.

"This will depend on each market, its legislation, and what the economics of business requires. We have seen some truly outstanding opportunities there."

Munjal said Hero MotoCorp had sent teams to the continent to find out potential markets for two-wheelers.

Mujal said that although many foreign firms were operating there, the company's operational capability and production capacity would work in its favor.

"Many of our Indian friends have gone there. There are also many Chinese and Thai companies present there, even older and larger Japanese players are there. But because of the way we operate, our scale and volume, we feel Africa offers a great promise."

The company is currently eying new markets such as Africa, Southeast Asia and Latin America, and expects to generate 10 percent of total revenue from exports in the next five years.