Vijay Munjal-led Hero Eco today said it has acquired UK-based Ultra Motors for an undisclosed amount, aiming to strengthen its presence globally in the electric vehicle segment.
Hero Eco, the newly-formed umbrella entity that will include Hero Electric, Hero Exports, Mediva, Winn and Hero Ecotech, plans to invest Rs 450 crore in the next five years across businesses.
The company is also planning to set up an electric vehicle facility in North America within the next 18 months.
"Hero Eco has acquired Ultra Motors in UK. This will give us an exposure to all the markets where Ultra Motors were present and will strengthen Hero's brand globally," Hero Eco Managing Director Naveen Munjal told reporters here.
He, however, declined to share the value of this acquisition, citing confidentiality of agreement.
"Ultra Motors has 3 plants and is present in 6 countries with sales networks in 22 nations across the globe. This all will come under Hero Eco now," Munjal said.
Earlier, Hero Electric had a tie-up with Ultra Motors for Indian operations, but it fell apart later. The foreign firm had closed shop here about two years ago.
Ultra Motors currently has its main manufacturing plant in Taiwan and has two contract assembly plants in China.
"Eventually, the contract manufacturing activities of the two Chinese plants will shift to India. However, it will take at least 6-8 months to proceed in that direction," Hero Eco Chief Executive Officer Sohinder Gill said.
On the new group entity, Hero Eco Chairman Vijay Munjal said the new brand identity will integrate all its different verticals.
"With the new identity, we will be foraying into high-end bicycles in India under a new brand Winn. We will also expand our medical equipment business under Mediva brand in a big way," he added.
The Rs 450 crore Hero Eco is aiming for a group turnover of Rs 1,500 crore in the next five years, Naveen Munjal said.
"To expand our all businesses, we will be investing Rs 450 crore in the next five years. We will be setting up a new electric vehicle plant in North America in the next 18 months," he added.
Besides, the group will also set up a bicycle unit in India within next 18 months, he said.
Currently, Hero Eco has all its manufacturing facilities in Ludhiana. While it produces 65,000 units of electric 2-wheelers, 9 lakh bicycles are rolled out every year.