Hero MotoCorp aims export of 10 lakh units in 5-6 yrs

New Delhi:Free from export restrictionsimposed by its ex-promoter Honda, India's largest two-wheelermaker Hero MotoCorp today said it aims to sell 10 lakh unitsin the overseas markets in the next 5-6 years.

The company, earlier known as Hero Honda, has alreadyshortlisted some players to expand its export markets in a bigway in the future.On the domestic front, the company is looking to investabout Rs 1,000 crore to set up two new facilities besidesexpanding the output of three existing plants.

[caption id="attachment_111837" align="alignleft" width="380" caption="The company, earlier known as Hero Honda, has alreadyshortlisted some players to expand its export markets in a bigway in the future.Reuters"][/caption]

Addressing analysts in a conference call, Hero MotoCorp Senior Vice-President (Marketing and Sales) Anil Dua said: "Weare looking at an exponential increase in export numbers ...In 5-6 years of time, we aim to sell a million bikes (every

year) in international markets, which will be 10 percent ofour total business."

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Currently, exports contribute less than 2 percent oftotal sales, he added.The company had sold a total of 54,02,444 units during2010-11 financial year."We have been approached by several partners fordistribution and assembly. We have already shortlisted somepartners," Dua said without giving further details.

The company is looking at exporting its products to LatinAmerica, Africa and South East Asian nations, he added.Asked about investment that Hero MotoCorp might put intodeveloping its export bases, Dua said the firm will invest in future, but now it will not financially support its channelpartners.

On the plans for setting up of two new factories andexpanding the existing capacities, Hero MotoCorp ChiefFinancial Officer Ravi Sud said : "When we talk of capacity,we talk in slabs of 7,50,000 units. So, 1.5 million unitscapacity plants. In a phased manner, it will cost close toaround Rs 1,000 crore."

The company will announce the location of its fourthplant within "next few weeks", he added.

PTI