Multi-Million Euro Investment by Avon Cycles in Plant Expansion
LUDHIANA, India – India’s Avon Cycles is expanding the production capacity at its mother plant in Ludhiana by some 50 percent. The company is investing 12.5 million euros in the hiked capacity which enables a production of some 15,000 bicycles per day.
“Currently our Ludhiana plant has the capacity to produce 10,000 units per day,” said Onkar Singh, Managing Director, Avon Cycles Ltd. at the recently held Indian bicycle show CFOSE 2018.
With the planned expansion Avon Cycles intends to meet the growing demand specifically from kids and leisure bikes. Next to these categories the company also wants to enhance its capabilities for producing e-bikes eyeing the growth of this segment in India. E-Bike awareness is increasing in India as the country’s government is pushing ownership of battery powered vehicles.
On the expansion of Avon’s Ludhiana plant MD Onkar Singh explained that it will be specifically focused on adding floors to the current buildings as there are limited possibilities to expand the floor area. He said “We will add an additional area of 240,000 sq ft to the existing structure. For that we will invest INR 1 billion (€ 12.5m) in the next fiscal year that runs from the 1st of April 2018 to 31st March 2019.”
More hi-end models
Avon experienced strong growth in its new hi-end series ‘Cyclux’, which is retail priced up to € 625. “As demand for the Cyclux range almost doubled it inspired us to expand this range to some 40 models this year,” said the Avon Cycles MD.
Avon Cycles sold about 2 million bikes in its fiscal year of 2017-18 that ended on 31st March. The company is targeting for a 10-15% growth in 2018 – 2019. The Indian bicycle major currently has a line-up of 140 different models.