Munjals-promoted Hero Motors today said it will invest Rs 100 crore in association with Austrian firm BRP Powertrain for manufacturing automotive transmissions in India.

The companies have signed a five-year Memorandum of Understanding for manufacturing the transmissions at Hero Motors' Gaziabad facility with an installed capacity of one lakh units per annum.

"This MoU is significant step in expanding the existing long-term strategic alliance with BRP Powertrain. We will invest Rs 100 crore to execute the contract," Hero Motors Managing Director Pankaj Munjal told reporters here.

As per the MoU, the company would manufacture transmissions worth 250 million dollars in the next five years, he added.

Hero Motors had already invested Rs 45 crore with BRP Powertrain for setting up the manufacturing base for producing transmissions in the last two years, Munjal said.