NEW DELHI: Two-wheeler maker Hero MotoCorp Tuesday said it has identified growth markets in Africa to set up manufacturing and assembly plants there.

"We have identified some of the countries which have potential to be high growth markets. We will probably set up assembly plants in some. In some, there may be manufacturing and in others it will probably be exports," said Sunil Kant Munjal, chairman, Hero Corporate Service.

"This will depend on each market, its legislation, and what the economics of business requires. We have seen some truly outstanding opportunities there."

Munjal was addressing the eighth India-Africa Project Partnership Summit here. Munjal said Hero MotoCorp had sent teams to the continent to find out potential markets for two-wheelers.

"We believe their is a unique opportunity for us to go and do business in two-wheeler segment there. Many of the African countries have shown rapid growth in the two-wheeler segment. Our teams have been visiting almost all of Africa."

Mujal said that although many foreign firms were operating there, the company's operational capability and production capacity would work in its favour.

"Many of our Indian friends have gone there. There are also many Chinese and Thai companies present there, even older and larger Japanese players are there. But because of the way we operate, our scale and volume, we feel Africa offers a great promise."

The company is currently eying new markets such as Africa, Southeast Asia and Latin America, and expects to generate 10 per cent of total revenue from exports in the next five years.

The company production capacity will reach more than 6.5 million units per annum from its three plants, up from 6.15 million in April 2010. Munjal added that his company would find unique solutions for each and every market it enters.

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Source: Hero MotoCorp to set up manufacturing plants in Africa - The Economic Times