HeroMoto Corp inks JV with Magneti Marelli for powertrains

Country's largest motorcycle maker HeroMoto Corp on Tuesday announced a joint venture with Milan-based Magneti Marelli for manufacture of new generation powertrains.

Both partners will invest $8.5 million in the JV firm - HMC-MM Auto Ltd - in the next three years and around $27 million over the next ten years.

"We have decided to form a JV with Magneti Marelli for next geneation fuel injection systems...a total equity injection of $8.5 million in ratio of 60:40 will be injected in the JV over a period of three years," Hero MotoCorp MD and CEO Pawan Munjal told reporters in New Delhi.

He added the JV firm would start manufacturing by the end of 2014 and is targeting $200 million in turnover in the next ten years.

Hero MotoCorp will hold 60 per cent in the JV while the Italian firm will have 40 per cent stake. The JV would also be open to supplying components to other manufactures as well, Munjal said. HeroMotoCorp has already forged alliances with US based Erik Buell Racing (EBR) and Austria's AVL to enhance its R&D capabilities.