As I have mentioned in my last post that no day can pass without there being any news from Hero Honda or Honda, today is no exception. Hero Honda lead by the Munjal group is all set to rock overseas markets up by displaying their competencies in the markets abroad. The company is all set to set up factories and lay operational lines in the overseas markets. Hero Honda is also keen and is in the process of developing unique products for the foreign markets as well.
After the break up of Hero and Honda last year, Munjals have got a free hand and can now operate freely in the overseas markets. The group is of the opinion that overseas markets have got great potential for new products and are good in terms of revenue and brand growth. The Hero Honda group is therefore looking to take on world markets like Latin America, Africa and South East Asia. Mr. Anil Dua (Sr. VP, Marketing & Sales) said that the company is looking to grow their share in overseas markets and thus they are in the process of setting up assembly units and manufacturing plants abroad.
Hero Honda is lacking behind many of their peers as far as sales from exports are concerned, Bajaj for instance gets 30% of their revenue share from exports and Hero Honda got only 2% last fiscal. Dua also said that the company has got drastic expansion plans to increase their brand value and revenue share. Hero Honda is looking to widen up their operations overseas just to reduce the dependence on domestic markets. It is also evident that company is looking to create its unique brand identity and as a result the company is changing its name to Hero MotoCorp Ltd from present Hero Honda Motors Ltd.
Speaking on the long term prospects Mr. Dua said that the company is looking to set up manufacturing facilities across the globe. He also said that the company is in process of evaluating various overseas markets based on which they will decide whether to export products from India or to set up separate facilities in those countries. He lastly said that the company will have to also look to produce new products for new markets apart from importing the products from India. All in all, the company is studying overseas markets and wants to take on its peers in terms of exports and global revenues.