Hero Sets Up Shop in China

MUMBAY, India (June 14) - Hero Exports, the international trading arm of Hero group, opened a subsidiary in China to source cheap bicycle components for exporting it to developing countries, a senior executive of the company said. "We have opened our first trading office in China for exporting bicycles and bicycle components to African countries," Vijay Munjal, managing director (international marketing), Hero Cycles, who also manages Hero Exports, said. The company hopes to take advantage of the "low prices of Chinese bicycles and its components", even as several cheap Chinese goods have started flooding the Indian market. With Chinese bicycle and bicycle components costing as much as 40% cheaper than Indian bicycles and parts, Hero Exports would procure certain material from the Chinese market for export to African countries like Uganda and Nigeria. "The company has a strong brand image in African countries and we wish to maintain that," Munjal said. Besides, Hero Exports plans to export its range of bicycles to European and American markets. "The potential in Europe and US is quite huge for our products," he said. Hero Exports, which is recognised by the Indian government as a trading house, would also concentrate on export of non-Hero group products like food grains, iron ore, auto parts, hospital equipments and steel.