Hero Group’s First Step into the Indian ESDM Sector Announced
This week has seen the news that the motorcycle reknowned maker Hero Group has stepped into the lucrative Indian Electronics Market with the creation of the new company Hero Electronix. The aim and objectives of this new venture is dual fold – firstly allowing the Hero Group to have a presence in the Indian market following their immense success around the globe and secondly to help the home Indian market become more self-sustaining without the reliance on foreign imports of goods and services, with a nod to the Make In India campaign running.
Hero Group has pledged to fund their new counterpart to a tune of Rs. 500 crore over the coming years with a view to tapping into the almost endless Indian electronics market in a variety of vertical areas. The first of these investments has already been announced as Hero has taken a majority shareholding said to be in the region of 65%, in the manufacturer of set top boxes, Mybox Technologies. This move grants Hero access not only to the technologies produced and owned by Mybox, but equally as importantly, access to the research, expertise, intellect and innovation of the designers and engineers currently employed in Mybox both at a hardware and software level.
Suman Kant Munjal, Chairman, Hero Electronix, said, “Hero Electronix will add associated business lines to its portfolio over the next few years and grow the vertical to help India develop a much needed sustainable electronics ecosystem. The company has lined up investments of ₹500 crore in next few years.”
The Hero Group is said to be valued at over $5 billion is best known for its two-wheeled success stories, but also has a successful presence in more than a dozen business verticals, including steel, energy, realty, corporate training and financial and consumer services.
Our view: Really great to see a home grown name with the stature, history and clout of such a big name as Hero making its foray into the ESDM market, and although as of date there are no details as to the end products or services to be made in India, we can be certain that the expertise, skill and marketing excellence that makes Hero the dominant force in the two wheeled market place will move across into electronics. A clear vindication of what we keep saying, the Indian ESDM market can reap huge rewards to companies willing to invest in this region as the consumer market is growing seemingly with no end. This also sounds out a warning shot to the existing players in the Indian electronics market – firstly that a ‘hero’ is entering their world and that they will need dig deep in their corporate pockets to keep up with this Hero…