Hero Ecotech Focusing on Export Markets
FRIEDRICHSHAFEN, Germany – Hero Ecotech debuted at last week’s Eurobike in Hall A2. It’s part of the company strategy to focus more on export markets. Hero Ecotech is more and more looking for international distribution partners, as the company’s MD Gaurav Munjal explains.
“The domestic market has been stable last year but we see a major increase of new suppliers putting a heavy pressure on existing price levels. However, our growth rate in volume hovers around 10 percent and we still distribute our products via 700 dealers,” said Gaurav Munjal.
The Ludhiana based bicycle producer is investing in its Mangli site. “Currently the Mangli facility has capacity of one million units annually. Our current production for both domestic and export markets is approximately 600,000 bicycles, which would likely increase by another 500,000 units in 2020. This is being met with our planned investment of about 1.2 million euro over the next year,” stated Gaurav Munjal. “The expansion primarily comes from our export.”
Rapidly growing export
Hero Ecotech has no plans to build another site and continues to focus on the existing Mangli facility. The bike maker is open to expand in neighbouring countries. “We are exploring investment opportunities in South East Asia as well,” Gaurav Munjal confirms. The Indian manufacturer is one of the India’s biggest bicycle exporters to the European Union. “We exported some 150,000 bicycles to Europe in the last fiscal year. We are targeting for this year to increase this volume to 300,000 bicycles for Europe and about 100,000 units to the US market.”
Hero Ecotech expanded its footprints overseas significantly into new markets in Scandinavia & Eastern Europe. “We have entered markets in European countries like Denmark, Sweden and Latvia while we found new customers in existing markets like the UK and the Netherlands as well.”
International social certification standard
A major reason for Hero Ecotech’s success in Europe is the compliance with certain standards at the Mangli site. “Our compliance with SA8000 has been a major gamechanger. We are the only bicycle factory in our country who achieved that,” claimed Munjal. SA8000 is a leading social certification standard for factories and organizations across the globe. Hero Ecotech showcased its range of bicycles at Eurobike. “The Indian bicycle and components manufacturers have made substantial investments in technology and machinery and are now ready to serve the European markets. The show provided a good platform to update customers on ‘India made products’.”