New Delhi, 06 January 2023: Hero Motors Limited, the flagship auto-components company of the HMC (Hero Motors Company) Group, with a focus on Gears, Transmissions, and Bike Powertrains, having multiple manufacturing facilities around the world, has raised growth equity capital from private equity firm GEF Capital Partners and its LPs for a minority stake. The automaker will use these funds to further augment its growth with a significant focus on serving the original equipment manufacturers in the electric mobility sector by setting up additional technology centers for Research & Development along with expanding its presence globally by opening new facilities to cater to its customers’ growing demands.
Commenting on the development, Mr. Pankaj Munjal, Chairman of HMC, said, “We are extremely excited to have GEF Capital Partners, a marquee investor, partner with us in our endeavour to be amongst the leading cutting-edge technology players in global Electric Vehicle components value chain. This fundraise is testimony to the brilliant platform we have built over the last years having deep relationships with the OEMs from across the world.”
GEF Capital’s Managing Partner, Mr. Sridhar Narayan, said, “Hero Motors is the largest manufacturer of e-bike components in India and is actively transitioning its Gears & Transmission business towards electric vehicles by acquiring capabilities across product engineering and process engineering. We are excited to partner with Hero Motors in its next phase of organic and inorganic growth”
Commenting on the partnership, Mr. Amit Gupta, MD & CEO of Hero Motors Ltd., shared, “This fundraise will help the company further augment its growth trajectory by enabling it to expand its network of facilities and allocate more capital towards R&D to be able to provide innovative products and solutions to our customers. The company has been consistently growing at over 50 percent CAGR in the last few years and the capital will be used to invest in further strengthening the company’s market position in its relevant markets and especially the fast-growing electric vehicle components space.”