The move is a part of the Indian two-wheeler major’s strategy to enhance technological prowess, post the break up of the erstwhile joint venture with Honda—Hero Honda
India’s largest two-wheeler maker Hero MotoCorp today said it has picked up 49.2% stake 
in US-based Erik Buell Racing (EBR) for $25 million (about Rs148 crore).
The company has incorporated a wholly-owned subsidiary in the US by the name of HMCL (NA), Inc for the purposes of investing in Erik Buell Racing, Inc, Hero MotoCorp (HMC) said in a filing to the BSE.
“HMCL(NA) has agreed to invest $25 million in EBR for a total stake of 49.2% in the share capital of EBR. The first tranche of $15 million has been invested by HMCL (NA) on 28 June 2013,” it added.
The second tranche of $10 million is proposed to be invested within the next nine months, the company added.
The company said it will work with Erik Buell Racing for selling bikes in North America and Europe, chief executive Pawan Munjal told reporters.
Last year Hero MotoCorp had entered into technology sourcing pact with EBR as it looked to strengthen its presence in the high-end bike segment.
The development is a part of the Indian two-wheeler major’s strategy to enhance technological prowess, post the break up of the erstwhile joint venture with Honda—Hero Honda.
The idea behind entering into partnership with EBR was a part of HMC’s overall strategy to have multiple technology sources for different segments and enhance its own R&D capability.
In December 2010, the Hero Group and Honda had agreed to end their 26-year-old relationship, with the Indian partner agreeing to buy out Honda’s 26% stake in Hero Honda for Rs3,841.83 crore.
The two erstwhile partners had, however, signed a new licensing agreement under which Hero will pay Honda 45 billion yen (about Rs2,450 crore) till 2014.
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