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To support its foray into the sports/luxury bicycle segment, Hero Cycles is investing Rs 71 crore in an assembly plant for aluminium frames. With a capacity of 1.2 lakh frames a year, the plant will be built at Hero Motors’ facility in Ghaziabad.
The new facility will give the world’s largest bicycle maker capability to source aluminium frames for premium cycles locally – it is currently importing these frames. Pankaj Munjal-led Hero Cycle’s facility is located at Ludhiana, Punjab and has a capacity of 20,000 cycles a day.
Pankaj Munjal, Co Chairman & Managing Director, Hero Cycles, said, “It was imperative that we have our in-house manufacturing unit for aluminium frames as well. With this new unit we will not only be able to meet the domestic demand but also be able to meet our export goals”.
In the first phase, it will invest Rs 21 crore in the new frame plant, following up with Rs 50 crore subsequent investment. The facility also has in-house R&D capabilities.
Pravin V. Patil, President - Urban Trail, Hero Cycles, said, “The general trend in the market is that consumer behaviour and lifestyle are inching towards premium products and so is the case for bicycle industry. The new plant unit will further strengthen Hero Cycles’ competitive edge in the premium segment.”
The Hero Motors’ Ghaziabad plant currently makes precision automotive components for their global customers such as BRP Rotax, BMW and Harley Davidson.
The Rs 1,700 crore turnover Hero Cycles was established in 1944 and currently claims to have a 48 per cent share of the domestic cycle market.
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