Hero Group, which controls India's largest two-wheeler maker Hero MotoCorp Ltd, has agreed to acquire Delhi-based television set-top box maker Mybox Technologies Pvt Ltd, marking its foray in the electronics business, according to a statement. Financial details of the acquisition were not disclosed.
The company will be renamed as 'Hero Electronix' and the cash rich group plans to invest Rs 500 crore (around $79 million) over the next few year to add associated business lines to its portfolio, said Suman Kant Munjal, who has been named the chairman of the new company.
Mybox is designing and making indigenous set top boxes and claims to be one of the largest suppliers to marquee DTH and cable operators across India. It is currently led by its CEO Amit Kharabanda.
“Hero Electronix sees immense potential in Mybox and its management team. Using its core competence in hardware and embedded systems design, Mybox is strategically focusing on fulfilling the demand of digitisation in India, while simultaneously developing products for the world," Hero Group said in its statement.
The $5 billion Hero Group has presence in over a dozen business verticals, with its two-wheeler firm Hero MotoCorp being the flagship.
As on March 31, 2015, the Munjal family owned 34.64 per cent stake in the company, which was founded in collaboration with Japan’s Honda Motor Corporation. Honda exited the venture in December 2010 by selling entire 26 per cent stake in Hero Honda for Rs 3,841.83 crore to the Munjal family.