Hero Group company Hero Eco on Wednesday said it was in the process of acquiring U.K.-based Ultra Motors, a move aimed at strengthening its presence globally in the electric vehicle (EV) segment. Hero Eco, the newly formed umbrella entity that will include Hero Electric, Hero Exports, Mediva, Winn and Hero Ecotech, also plans to invest Rs.450 crore in the next five years across businesses to cross a turnover of Rs.1,500 crore. Ultra Motors has operations in the U.K., the U.S., Germany, Taiwan and China and a distribution network in 22 countries, including Switzerland, Benelux, Japan and Australia. The acquisition entails taking over the operations and products, including Pedelecs, folding bikes, e-bikes and e-scooters, under the popular A2B and F4W brands. With this acquisition, Hero Eco hopes to become a company with the largest range of two-wheeler electric vehicles (EV) in the world.
“The acquisition of Ultra Motors is a giant step forward in setting global footprints for the group. This will give us an exposure to all the markets where Ultra Motors were present and will strengthen Hero's brand globally,” Hero Eco Managing Director Naveen Munjal told journalists here. The company also unveiled its new brand identity.
Stating that they were also planning to set up an electric vehicle facility in North America within the next 18 months, Mr. Munjal said: “Ultra Motors has three plants and is present in six countries…all this will come under Hero Eco now.” Earlier, Hero Electric had a tie-up with Ultra Motors for Indian operations, which later fell apart.
Explaining the strategy behind the Ultra Motors deal, Hero Eco Chief Executive Officer Sohinder Gill said the acquisition would not only help the existing businesses of the group to take advantage of the common sourcing and common markets, but would also create a seamless flow of technologies developed in-house and the ones acquired abroad to flow into the each other's products.