This is courtesy of TomThorp. Aprilia use OEC technology on...

This is courtesy of TomThorp. Aprilia use OEC technology on their Ditech motorscooters. This is evidence that at least one Indian bike maker is going with OEC tech.

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Share sale to fund Hero Motors unit
SRINJOY SHARMA
New Delhi, Jan. 11: Moped maker Hero Motors plans to raise Rs 125-
150 crore through private placement of around 15-20 per cent equity
to fund its new 4,50,000-unit-a-year motoscooter producing plant.

Hero Motors, owned by the Munjal family which controls Hero Honda
Motors as well, will use technology from Italy's Aprilia to make
these motoscooters — hybrids of scooters and motorbikes — in the 75-
125 cc range.

The issue price for the private placement would be between Rs 40 and
Rs 50 and the firm is holding discussions with several foreign
investors, including IFC Washington, UK-based CDC Capital Partners
and Citibank Private Equity Fund.

ICICI Securities, the investment banking arm of the country's
largest private bank, ICICI Bank, is the lead manager to the
issue. "The deal will be finalised by the end of the current
fiscal," sources said, adding the firm is not ready to divest more
than 20 per cent of its equity.

Hero, now being spun off from another group, Majestic Auto, has tied
up with Aprilia, Europe's second-biggest maker of scooters and
motorcycle, for the buyback of part of the production and supply of
technology.

The first of these motoscooters will be launched in October.

The Italian firm will also buy back around 20-30 per cent of output
for sale in Europe and other Asian markets which would help lower
its production cost and improve competitiveness.

Hero is also aiming for a 10 per cent share of the domestic scooter
market on the back of these models and is expecting to post annual
sales of Rs 322 crore, including exports, from these products.