The young scion of the Munjal family, who owns Hero and all its subsidiaries, further stated: “This acquisition brings us fast-moving electric bike brands such as A2B and F4W (FastForward).” However, he declined to disclose the size of the deal. “We are bound by legal constraints and cannot disclose the transaction amount,” he said. Prior to this, the two companies had jointly entered the Indian e-bike market but later went their separate ways. Ultra Motor also attempted to break into the Indian market on its own but achieved little success, shutting down its local factory several years ago.
The newly formed umbrella organization, Hero Electric, includes Hero Electric, Hero Export, Mediva (medical equipment), Winn, and Hero Ecotech. The group also plans to invest around $90 million over the next five years in certain niche markets. The company has an annual turnover of about $100 million, with a target to triple that figure within the next five years.
Through importers, Ultra Motor has a distribution network in 22 countries. This acquisition provides Hero with the means to enter these markets. “Ultra Motor has a distribution network in markets such as Canada, Switzerland, Benelux, Spain, Russia, and Japan. Moreover, it holds significant market share in Benelux, Germany, the US, and Canada,” said Naveen. The deal also brings Ultra Motor’s R&D center in Taiwan and its design center in Berlin under the Hero Electric umbrella.
Ultra Motor Ltd. filed for insolvency similar to Chapter 11 bankruptcy in the UK on November 7. The company announced that it had sold its Taiwanese subsidiary to a group of European private equity investors.
After selling its Taiwanese subsidiary, Ultra Motor Ltd. still retains two distribution companies, one in Germany and one in the US. Additionally, there is a subsidiary managing Ultra’s E2W business, including the A2B series. “We have taken over everything, including the entire team, inventory, IT, molds, brand, and R&D,” said Naveen Munjal.
After selling its Taiwan subsidiary, UltraMotor Ltd. still owns two distribution companies, one in Germany and one in the United States. In addition, another subsidiary manages Ultra's E2W business, including the A2B series. "We took over everything, including the entire team, inventory, IT, molds, brand, and R&D," said Naveen Mu・njal.