Indian Sovereign Setting Up Assembly Line
NEW DEHLI, India – Indian bicycle assemblers are adopting an aggressive strategy spurred by the low exchange rate of the Indian rupee. One of them is Sovereign that has a JV with Thailand based LA Cycles. MD Rohit Kalra (photo) announced that
NEW DEHLI, India – Indian bicycle assemblers are adopting an aggressive strategy spurred by the low exchange rate of the Indian rupee. One of them is Sovereign that has a JV with Thailand based LA Cycles. MD Rohit Kalra (photo) announced that Sovereign has decided to go ahead with its plans to set up a new assembly operation in Ludhiana.
“We have already started construction of a assembly line on a 3,000 square meter site (adjoining the current facility),” confirmed Rohit Kalra of Sovereign Exports. The company has a JV with Thailand based LA Cycles and the new line is being set up under the same venture.
End of 2009
The company plans to manufacture 100,000 bikes annually on the new assembly line. However, the investment structure among the partners has not been finalized as yet. “Production will likely begin at the end of 2009,” said Kalra. When asked whether this was the right time to invest, given that bicycle companies worldwide are shelving their expansion plans owning to the financial meltdown, he quickly added, “Every time is a right time. All times are okay and no time is bad.”
Meanwhile, the company has opened another bike store, showcasing its Proline range launched along with partner LA in the Indian market, this time in the heart of country’s capital – New Delhi. Kalra has even bigger ambitions: “This is the third outlet and we have firm plans to open another showroom shortly. We plan to open bike stores in every major city in India. We strongly believe that this is the best way to reach out to customers.”