Indian two-wheeler manufacturer Hero Electric has received a big boost to it’s expansion plans.
Hero Electric has raised a Rs.220 crore fund in part one of the series B round. The round was led by Gulf Islamic Investments(GII) along with OAKS. The initial investment of Rs.220 crore will aid in Rs.700 crore investment earmarked that till the year 2025. The core focus remains on the expansion of company’s business and also includes setting up a new manufacturing plant.
Naveen Munjal, Managing Director, Hero Electric said “The EV market has undergone tremendous change over the last few years since we raised our first round of funding. The policies are extremely conducive for the growth of the segment and despite the pandemic, the company is poised to grow at over 2X from the last fiscal.” “Hero aims to sell over 1 million units per year in the next couple of years. This round of investments, which is a first of a larger scheme, will help expand our manufacturing capacities and increased R&D spends that will enable us to continue to launch innovative products to disrupt the category. Hero is committed to its mission of – no emissions and build a sustainable future that is electric,” he explained.
Resource allocation
The expansion will help the manufacturer multiply its output three folds at its existing plant in Ludhiana, an expectation of pushing the output of 100,000 units to 300,000 units and set up a plant that can roll out a million units in a year. The company targets to sell a million units by the year 2026. The funding will be put to good use in form of strengthening market leadership, invest in advanced technology and expanding production capacity. The plan falls in line with making India the EV hub of the world along with focusing on increasing the electric infrastructure across the country and abroad. The company has managed to achieve a milestone of selling 350,000 EVs in the last 14 years, about 6000 mechanics have been re-skilled and has over 700 customers and service touch points across the country.
Vishal Ootam, founder and CEO of OAKS said, “We have been tracking this sector in India and globally are very excited to have partnered with Hero Electric who are the clear market leaders in this space. We believe that over the next few years, the EV market is going to grow exponentially.” “Our belief is that this investment round will put the brand Hero firmly in a leadership position. Hero is poised to grow multi-fold over the next few years, and we are only happy to be part of this growth story,” he concluded.
