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Exclusive: Maxus adds Hero Electric to its kitty; account size Rs 20 crore

Exclusive: Maxus adds Hero Electric to its kitty; account size Rs 20 crore

Author | Noor Fathima Warsia | Tuesday, Jun 03,2008 8:45 AM

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Exclusive: Maxus adds Hero Electric to its kitty; account size Rs 20 crore

Maxus India is continuing with its new business acquisitions. Soon after scooping the Essar business, Maxus has now added more from the Hero Group. In addition to Hero Honda and Hero Cycles, Maxus has been appointed the media AoR on Hero Electric. The move wasn’t preceded by any pitch process. Industry sources peg the business to be in the vicinity of Rs 20 crore.

Sources familiar with the situation informed that one reason why Maxus won the business was because the agency had been successfully handling the other Hero Group brands that include Hero Honda and Hero Cycles. Sources also informed that Naveen Munjal, CEO, Hero Electric, took the decision to assign the mandate of Hero Electric to Maxus.

Hero Electric, a part of Ludhiana-based Hero Group, was in the news recently for its spat with UK-based Ultra Motors. Hero is present in the geared and non-geared scooters segment. Hero Electric and Ultra Motors have been collaborating since September 2006, where the latter supplied the motor kits for the two-wheelers that Hero Electric manufactured. A year later, the companies had announced their intention to enter into a joint venture.

Under the collaboration, the companies had sale and purchase agreements and would have had a common dealership network, whereas under the joint venture, the activities would be carried out by a single company formed as a partnership. The joint venture ended following disagreements between the two companies.

Tags: e4m

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