HeroEco Upgrades Facility & Adds Alloy Frame Production
LUDHIANA, India – HeroEco is expanding its capacity both in terms of infrastructure and technology. The total investment in the expansion stands at about USD 3.3 million.
“We have added another bicycle assembly line and invested in double walled alloy rim production,” says company chairman Vijay Munjal. “The focus on upgrading our technology shall continue in 2016 with further investments in the production of alloy frames.”
Production start for alloy frames
According to Munjal, the upgrading of the company’s Ludhiana facility also includes the construction of in-house testing facilities and the modernization of the paint shop.
The production start for alloy frames is planned for the end of 2016. The equipment for the separate alloy frame plant at the Mangli facility in Ludhiana is expected to arrive in September. HeroEco is focusing on sales in the domestic market for these frames, as well as export markets.
Demand for premium bikes growing
In 2015, the Indian domestic market matured further and demand for premium bikes is growing. For domestic growth HeroEco is working on establishing cooperation with an international brand. “Their introduction on the Indian market will increase our portfolio,” said Munjal. HeroEco is targeting a total turnover of USD 40 million for its domestic sales in 2016. The Mangli plant in Ludhiana has the capacity to manufacture 1.1 million bikes annually.
India’s largest exporter to EU
HeroEco is India’s largest exporter of bikes to the European market, with exports reaching 55% of the company’s total production. Though the number of exported bikes dropped in 2015 due to the political unrest in the Middle East and some other countries, HeroEco managed to increase the value of its export by about 6% to USD 22 million.
This year Hero Eco started exporting to the Eastern European countries and also developed and exported specific products to the Netherlands. The company continues to focus on export to the EU member states, CIS countries (former Soviet states) and Russia. HeroEco is also focusing on establishing itself as the preferred OEM supplier to European assemblers.