Hero MotoCorp is planning to setup fully-fledged manufacturing facility in Bangladesh and Columbia- a way with which the company can ease its international operation. Currently, the company sells its two-wheelers through completely-knocked down (CKD) units with the help of its distributors.
"Hero MotoCorp already has distribution partners in these two countries. The company is looking at expanding operations and setting up fully fledged manufacturing units in Colombia and Bangladesh by the end of the current financial year. There are plans to explore opportunities for assembly facilities in African countries such as Kenya and Nigeria later." said a person known to the development to Business-Standard.
It makes sense setting up manufacturing facility in these markets. Exporting a product to these markets will include additional freight charges and taxes which will be added over and above to the actual product price. So it becomes difficult for the company to price their product competitively, considering the fact that there are already well established competitions there.