Hero MotoCorp Incorporates Wholly Owned Subsidiary in Brazil

Hero MotoCorp Limited has incorporated a wholly owned subsidiary in Brazil under the name Hero MotoCorp do Brasil Ltda. This development follows the earlier decision taken by the company’s Board of Directors on May 8, 2024.

The new subsidiary is yet to commence operations and currently has no turnover. It has been established to manufacture and distribute two-wheeler vehicles along with parts and accessories. The move aligns with Hero MotoCorp's strategic goals and is within the company’s core line of business.

As this is a wholly owned subsidiary, it will be treated as a related party post-incorporation. Other than this, there is no interest from the promoter, promoter group, or group companies in the transaction.

No acquisition is involved in the formation of this entity. It is being set up subject to necessary governmental and regulatory approvals in Brazil. The investment in the new subsidiary will be carried out in phases. The company will hold 100% ownership and control.

This expansion into Brazil is part of Hero MotoCorp's international growth strategy. The company had disclosed its intention to set up this subsidiary during its Board meeting held on May 8, 2024, which also covered other key resolutions.

At the same meeting, the Board approved the audited standalone and consolidated financial results for the financial year ended March 31, 2024. A final dividend of ₹40 per equity share (2,000%) was recommended, subject to shareholder approval at the upcoming 41st Annual General Meeting (AGM). The dividend, if approved, will be dispatched within 30 days of declaration at the AGM.

For this purpose, the Register of Members and Share Transfer Books will remain closed from August 2 to August 12, 2024 (both days inclusive).

The Board meeting commenced at 11:20 a.m. and concluded at 2:35 p.m. on May 8, 2024.

Incorporating a subsidiary means formally setting up a new company that is legally separate from the parent company, but owned and controlled by it—usually fully or majority owned.

Key characteristics:

• The subsidiary has its own name, legal identity, and is registered under the laws of the country it's set up in.
• The parent company holds the majority (or full) ownership, so it controls operations and decisions.
• Any profits, losses, or liabilities of the subsidiary are recorded separately, although they may be consolidated in the parent’s financial statements.