The legendry Indian business family- the Munjal's - has sold 50% of its stake in the auto component company Hero Chassis Systems. Hero Chassis Systems is a subsidiary of the parent company Hero Motors.

The German auto component player ZF-Lemforder has bought this stake in Hero Chassis. The rest 50% stake is still held by the Munjal family. However, the amount of the deal remains undisclosed. Hero Chassis is now renamed as ZF Hero Chassis Systems.

Hero Chassis, currently, has two manufacturing facilities operational, one at Halol (in Gujarat) and another at Talegaon (in Maharashtra). Pankaj Munjal, MD, Hero Motors confirmed that by the year 2012, the company is looking at opening two new manufacturing units, one in the NCR region and another in Chennai. The plan is to expand the current manufacturing capacity of 1.6 lakh units per year to 4 lakh units annually.

As of now, Hero Chassis manufactures chassis systems for the American auto major General Motors, but keeping in mind the promising growth in the Indian auto industry, the company is hopeful of becoming a major supplier to all the small car brands in India.

The Munjal's who are the promoters of Hero Motors, are planning to invest additional Rs. 150 crore in the group. Hero Motors is into various business areas including manufacturing of auto component, fitness equipment and engines for motorcycles, boats and other vehicles. The company is also considering coming up with an IPO in the next two to three years time span.