Both partners will be investing a total of USD 8.5 million in the JV firm, HMC-MM Auto Ltd, in the next three years and around USD 27 million over the next ten years.
"We have decided to form a JV with Magneti Marelli for next generation fuel injection systems,  a total equity injection of USD 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 said.
He added that the JV company would start manufacturing by the end of 2014 and is targeting USD 200 million turnover in the next ten years.
Hero MotoCorp will hold 60 percent in the JV, while the Italian firm will have 40 percent stake. The JV would also be open to supplying components to other manufactures as well, Munjal said.
Hero MotoCorp has already forged alliances with US-based Erik Buell Racing (EBR) and Austria's AVL to enhance its R&D capabilities.


Latest News  from Business News Desk