Asiabike Sets Up News Facility for Kids Bikes
COLOGNE, Germany Sri Lankas largest bicycle maker Asiabike Industrial Ltd recently floated a new children bicycle making subsidiary Colombo Cycle Company (CCC). The new company is a joint venture between Asiabike Industrial Ltd and two Taiwan companies called Active Cycles & Y S Paints, confirmed Isthiark Farook, Asiabikes Managing Director. The children bikes will be manufactured with Taiwanese technology. The Sri Lankan bike maker is importing a Taiwanese plant for the new venture.
On equity participation among the various partners, Farook said, “Asiabike is holding 40% of the shares, while the remaining 60% is equally shared among the Taiwanese partners.” The venture will be completely funded by the three partners. When asked about the objective of entering into the kids bike market, Farook clarified, “There’s a huge potential in this segment, which is among the fastest growing sub-segments. Because of that we are planning to begin with good production volumes right from the opening of the new facility which is scheduled for the end of this year. Production planning for 2007 stands at 200,000 units.” The new subsidiary will manufacture value for money mid-end children bikes without gears and derailleurs in price ranges between US$ 20 to 30. Colombo Cycle will exclusively cater the international market. “Duty free exports to the EU market would further leverage advantage in our favor,” believes Asiabike’s MD Isthiark Farook.