Hero Cycles: Huge Investments for Increased Export to EU

LUDHIANA, India (August 1) - Hero Cycles is investing US$18 million (Euro 21 mn) in a series of initiatives to give a thrust to its export markets. The biggest bicycle maker of India is especially targeting the EU market where it wants to increase its presence. Currently, Hero is in the final stage of establishing a joint venture with a foreign partner to manufacture hi-end bicycles in India. The Indian maker will build a new facility for the production of high-end bicycles. Mr. Om Prakash Munjal, Co-Chairman and Managing Director of Hero Cycles Ltd. told Bike Europe, "In our new unit we will produce 3,000 high-end bicycles per day and ultimately around 1 million units a year." To promote the company's image for the western European market, Hero is considering country-specific acquisition of brands apart from the proposed joint venture. "We are looking at all options, a joint venture with majority stakes, a technical tie-up and definitely a few major brand buyouts in western Europe", explains Mr Vijay Munjal, Managing Director, International Marketing, "we are negotiating with four major European brands", think about Dutch, German or Italian strong names." Hero Cycles Ltd, one of the greatest manufacturers worldwide believes that it is the right time to act and acquire a place on the international bicycle market compatible to its sheer size. Hero believes that their exports with some 400.000 units was rather small in comparison with its 5.5 million unit annual production. A complete report about Hero's increased export activities will be published in Bike Europe's August edition. (SH)