Nitol Niloy Group and India’s largest two-wheeler maker Hero MotoCorp on Monday signed a joint venture agreement to set up a motor cycle plant in Bangladesh.
The plant will go for full commercial production by the second quarter of the fiscal year of 2015-2016 with an annual production capacity of 1.5 lakh units.The companies will invest $40 million in the plant in next five years.
Hero MotoCorp will hold 55 per cent share in the joint venture while 45 per cent will lie with Nitol Niloy Group.
Nitol Niloy Group chairman Abdul Matlub Ahmad and Hero MotoCorp managing director Pawan Munjal signed the agreement at a ceremony held in Dhaka on the day. The factory will be set up in Jessore.
At the programme, industries minister Amir Hossain Amu welcomed the investment of the Indian company and said that the initiative would bring latest technology into Bangladesh in automobile industry.
He also urged Indian investors to come up with their investment in other sectors in Bangladesh.
Matlub said that the aim of the joint venture is to provide technologically advanced, innovative and fuel efficient two-wheelers for customers in Bangladesh.
According to the agreement, 11 models of Hero motorcycle will be marketed in the country through 50 outlets and the company will offer 5-year warranty on all products.
Munjal said that the JV aimed to capture around 20 per cent of market share in Bangladesh in the first year of its operation.
He said that with the setting up of the world class plant in Bangladesh, Hero MotoCorp would bring the latest modern technology into the country and this would generate direct and indirect employment opportunities in the country.
Already, Hero MotoCorp is selling a range of motorcycles in Bangladesh.
At the programme, acting Indian high commissioner to Dhaka Sandeep Chakravorty and Nitol Niloy Group managing director Abdul Musabbir Ahmad, among others, were present.
-With New Age input
