Hero Motors forms JV with Briggs Stratton

The project has envisaged an investment of Rs 100 crore over the three years period. The amount would be brought in partly by the way of equity and partly by borrowings, he said.

The engines would be produced at Ghaziabad (Uttar Pradesh) plant of Hero Motors where the company has separated its existing engine manufacturing facility into another unit to execute the project.

The engines would be used mainly by Hero Motors which produces scooters and mopeds in India but the company would also explore possibilities of supplying the engines to Indian two-wheeler manufacturers, Jinsi said.

"We are in talks with several Indian two-wheelers but have not finalised anything yet," Jinsi said but declined to divulge further details and name of the companies.

All the four-stroke engines would conform to the emission standards applicable at the time of the commercial launch, Jinsi said. The company would utilise these engines for its existing range of products including mopeds, scooteratte and scooter.

Present engines requirement of the company is about 1.10 lakh units per annum which is expected to go up significantly in the next three years as it is planning to launch new models and varients.

Hero Motors had hired services of an agency to study the shortcomings of its existing two-wheelers and suggest the ways to improve their performance and looks.

Based on the survey report, the company has planned to introduce several varients of its Hero Puch moped and Hero Winner scooter in the near future.

Hero Motors has targeted to sell one lakh two-wheelers during the current financial year against 77,000 units sold in the last fiscal. It has also aimed to export 20,000 vehicles to European and South American market during the current financial year. During the first quarter of the fiscal 1999-2000, it has exported 3000 vehicles.