Munjals to present new royalty deal to Hero Group this week
The Munjal Family is likely to present a new royalty deal to the Hero group this week where the final royalty agreement is likely to be discussed. The board of Japanese automaker Honda motors is said to have approved of the royalty price. It is essential that the board’s of both companies approve of the new royalty price for the deal to go through.
The Hero Honda board comprises of Analjit Singh, M Damodaran and Anand Burman, while the Ajay Shriram, Pradeep Dinodia are on board of Hero Corporation.
CNBC-TV18 had earlier reported that Hero and Honda had agreed to the royalty term of around Rs 2,300-2,400 crore.
Currently, Hero Honda pays around Rs 500 crore per year as royalty fees which is around 2.2-3% of total sales.
According to the talks, Honda will supply three new variants at 8% royalty. It had agreed to supply these before the decision of terminating the joint venture.
Source :- Moneycontrol
