Hero Motorcorp launches ‘Hero’ brand in Sri Lanka
Indian automotive giant, Hero MotorCorp Ltd. announced its first foray into the international market with the launch of the brand ‘Hero’ into the Sri Lankan market yesterday.
Hero, which launched its new brand identity last year, will be partnering with the Abans group to market a wide range of products in the local market, with Abans acting as the sole distributor.
Hero’s entry into the domestic market in Sri Lanka will be facilitated through an estimated total investment of US$ 4-5 million over the near to medium term, of which Hero is expected to contribute approximately half of the total investment, according to Hero Motorcorp Senior Vice President of Sales and Marketing Anil Dua.
Speaking at the launch event, Hero Motorcorp Managing Director and Chief Executive Officer PawanMunjal said, “Sri Lanka has been a very important market for us and we have a loyal customer base in this country. The fact that we have chosen Sri Lanka as the first international market to launch our new brand identity is indicative of the significant role this market plays in our plans to expand our global footprint. It also gives me immense pleasure to announce the choice of the Abansgroup as our partner in this market. I am sure that their rich experience in this market and knowledge of the local customer will go a long way towards further strengthening our business here.”
Pawan further stated that Hero would be aiming to improve its market share in Sri Lanka, with an eventual target of reaching a market leadership position of approximately 40-55% in the mediumterm. Hero’s market share in Sri Lanka currently stands at approximately 25% as at the end of the first quarter of this year, up from 23% last year and 16% in 2009, with 6.2 million global sales being carried out over the course of the 2011-2012 financial year. Hero’s entry into Sri Lanka also marks a targeted shift in sales strategy, as the company looks towards creating new export markets in Africa and Latin America. Pawan stated that Hero would be looking to generate 10% of its total sales volumes from international business within the next five years.
At present, 97% of Hero’s total sales volumes are from domestic sales within India.