Naveen Munjal (left) in New Delhi on Wednesday. Picture by Rajesh Kumar

New Delhi, Dec. 28: Vijay Munjal-led Hero Eco has acquired British company Ultra Motor for an undisclosed amount to strengthen its presence in the global electric vehicle segment.

Hero Eco, the newly-formed umbrella entity by Vijay Munjal-led companies that include Hero Electric, Hero Exports, Hero Cycles, Mediva, Winn and Hero Ecotech, also plans to invest Rs 450 crore in the next five years, across its businesses.

The company is planning to set up an electric vehicle facility in Canada within the next 18 months.

“Hero Eco has acquired Ultra Motor in the UK. This will give us an exposure to all the markets where Ultra Motor is present and will strengthen Hero’s brand globally,” said Naveen Munjal, managing director, Hero Eco.

He, however, declined to share the value of this acquisition, citing confidentiality of agreement.

“Ultra Motor has three plants and is present in six countries with sales networks in 22 nations across the globe. This all will come under Hero Eco now,” said Munjal.

In 2006, Hero Electric had a tie-up with Ultra Motor for bringing out electric two-wheelers, but it fell apart later. The foreign firm had closed shop here about two years ago.

At present, Ultra Motor has its main manufacturing plant in Taiwan and has two contract assembly plants in China. It operates in countries such as the UK, Germany, China, Japan and Australia.

“Eventually, the contract manufacturing activities of the two Chinese plants will shift to India. However, it will take at least six to eight months to proceed in that direction,” said Sohinder Gill, chief executive officer of Hero Eco.

On the new group entity, Hero Eco chairman Vijay Munjal said the new brand identity would integrate all its different verticals.

“With the new identity, we will be foraying into high-end bicycles in India under a new brand Winn. We will also expand our medical equipment business under Mediva brand in a big way,” he said.

Hero Eco is aiming for a group turnover of Rs 1,500 crore in the next five years, Naveen Munjal said.

“To expand all our businesses, we will be investing Rs 450 crore in the next five years. We will be setting up a new electric vehicle plant in North America in the next 18 months,” he said.

The group will also set up a bicycle unit in India in the next 18 months.

At present, Hero Eco has all its manufacturing facilities in Ludhiana.