Hero Honda is on the verge of break up and Hero group is already preparing for its consequences. News has it that Hero Group is now busy in searching new technology partner. Hero group intends to begin operations with the new partner after the dissolution of their long relationship with Honda. According to company’s officials, Hero group is planning to set up a team of officials and send them to Europe to scout a technology partner.
According to the news, Hero group is forming a team of top executives which will be dispatched to Europe.
Hero group picked Europe because there are lots of bike manufacturers in Europe capable enough to produce bikes according to the Indian perception. Also the bike manufacturers from Europe are keen to enter sprawling Indian market. Hero Group feels that partnership deal with Europe’s manufacturers is easier to crack as they are keen to set their units in India.
PTI reported that Honda is going to sell its stake of 26% as early as March 2011. However the technology patch up will be available till 2014. A company official said that Hero group is left with fewer options as regards research and development and thus the group is looking for a technology partner to support their R&D functions. Whatever the case may be, we are surely going to see either the rise or fall of the Hero Group. Well, one can just hope that they continue making great bikes despite of the dissolution.
