Mr. Vijay Munjal of Hero Eco has confirmed that the company has purchased Ultra Motors of US so as to increase their share in the two wheeler electric segment in the country. Hero Eco consists of Hero Electric, Hero Cycles Mediva and Winn and Hero Ecotech. Munjal has further announced that they will be investing Rs.450 crores in the coming five years to boost business development. Besides this, the company will also be setting up a new electric vehicle facility in North America by early 2013.
Mr. Naveen Munjal, Managing Director of Hero Eco said that taking over Ultra Motors would ensure that Hero Eco would benefit from their markets where they had a stronghold and this would further benefit Hero Eco. He however did not mention at what price the company had taken over Ultra Motors as he said that was a confidential matter.
All Ultra Motors plants including their sales networks which are present in 22 countries of the world will be a part of Hero Eco henceforth. Besides this, Ultra Motors manufacturing activities at their two Chinese plants will also be shifting to India. The company will be concentrating on launch of high end bikes and will also look to expansion of their medical equipment business under Mediva brand.