TI Cycles Enters into Licensing Deal with Ridley
FRIEDRICHSHAFEN, Germany – TI Cycles from India, a subsidiary of the Murugappa Group, announced at last week’s Eurobike that it has inked a licensing deal with Belgian Ridley Bikes. The deal presents brand Licensing rights for Ridley for India and the South East Asian countries of Sri Lanka, Bangladesh, Nepal, Bhutan and Myanmarfor a period of 33 years.
“We are confident that Ridley will infuse fresh dynamism to our commitment to India and the Indian consumers,” said Arun Alagappan, President, TI Cycles of India in a statement.
After signing the deal Jochim Aerts, Chief Executive Officer, Ridley Bikes said, “Our focus will be to grow this segment in line with the needs of the Indian consumers. We are sure Ridley Bikes will establish itself as one of the leading brands in India”
The two companies declined to comment on the amounts involved in the deal and said that the licensing fee agreement is based on confidentiality.
Innovator in bike technology
Ridley Bikes Belgium was established in 1990 and is considered one of the innovators in bicycle technology in carbon and alloy for key market segments like Road, Cyclocross and MTB. The company holds numerous patents for aerodynamic design of frames and forks, and have their products tested in Wind tunnels and universities throughout the world.
Cannibalization of other international brands
When asked if adding one more brand to the TI Cycles kitty, that already holds numerous renowned brand names, would lead to cannibalization of other international brands the company markets in India; KC Ramamurthy, Vice President of TI Cycles said, “The other brands will not get affected as the Indian market is growing rapidly and Ridley will spur further growth.” TI also sells bike brands like Bianchi, Cannondale, GT, Schwinn, Mongoose & Montra in the Indian market.”
“The move would likely strengthen the market share for TI Cycles in the premium segment and will also establish Ridley as one of the key global brands in India. “It’s an agreement based on exploring the potential and both sides will maximize the deal,” said Ramamurthy.
Promote professional cycling
With the introduction of Ridley Bicycles in India, both the companies plan to undertake programs in India to promote the culture of professional cycling and also provide a platform for Indian riders to get global exposure. “Ridley bikes will be available at Premium Track & Trail and Ciclo Café retail outlets and key multi brand outlets across cities,” said Ramamurthy.
TI Cycles plans to expand its reach of Premium Track and Trail and Ciclo Café stores up to 50 outlets by 2017 from its present 12 outlets.