Hero Motors Ltd, part of the Hero Group, has bagged a $250-million order from a Canadian manufacturer of recreational vehicles, the company announced on Tuesday.
The order from Bombardier Recreational Products (BRP) is for supplying transmissions for the Canadian company's vehicle range that includes all-terrain vehicles, motorcycles and snow-mobiles.
Hero Motors managing director Pankaj Munjal described the offer as a sign of India's manufacturing sector stepping uto provide cheaper alternatives to the west.
"The global recession is putting pressure on large companies. Under (these) extreme conditions, the big companies are looking at sourcing from India," Munjal told reporters.
The companies have signed a five-year memorandum of understanding (MoU) for making transmissions at Hero's Ghaziabad facility.
Hero Motors will invest Rs.100 crore in the facility in the next five years. "This MoU is a significant step in expanding the existing long-term strategic alliance with BRP Powertrain. We will invest Rs.100 crore to execute the contract," Munjal said.
Hero Motors has already invested Rs.45 crore for setting upad unit in the last two years, he added.