Hero Cycles Ltd. to Double Manufacturing Capacity in Sri Lanka
In a major move to consolidate and power its continued surge in the premium and performance bicycle category in India and Europe, Hero Cycles Ltd is sprucing up its manufacturing facility in Sri Lanka.
Acquired over a year ago, this modern state-of-the-art plant has been the iron horse of growth for Hero’s recent and rapid rise in the premium category in India and Europe.
Designed and led by a feisty team, this facility is the manufacturing hub for the world leading range of products which are redefining Hero Cycle Ltd.’s credence and imagery as a world class cycle manufacturer in the domestic and international markets.
The product range developed in Sri Lanka and understandably so is now also being brought into the Indian markets as well which as we all know is going through a transformation of sorts with the awareness and expectation of having a world class range in the plum MTB segment. Leading from the fore is the Sprint Range of Bicycles which has been spearheading the premium, MTB segment numbers in India. The other range which includes the likes of Coyote, Viking, Riddick, Denovo are all very popular and strong brands which are the mainstay of Hero’s recent success in Europe.
What has also proved to be an added advantage is that the market in India primarily in Western and Southern regions are best logistically serviced from Sri Lanka factory, and to add to this Hero’s world class design centre in Manchester, Hero Global Design Centre helps create the world’s best and latest designs, coupled with the best premium components from Spur (In House Hero Brand) creating an ecosystem which continues to fuel and feed both international and domestic demands.
“At Hero Cycle Ltd., we truly believe in unlocking the potential of any business opportunity and the acquisition of BSH has been an ocean of opportunity. With the Indian Market, particularly the South, graduating to higher value vehicles and GSP+ benefit, we expect a substantial demand shift to Sri Lanka. Keeping the perennial demand of both the domestic and international markets, we plan to further strengthen this facility and more than double its output from 250,000 bicycles to 500,000 plus capacity by 2018.”, opined Pankaj M Munjal – Chairman, Hero Motors Company (HMC).
Interestingly, Hero Cycles Ltd. has been aggressively driving growth by clocking a robust 23% growth in the Indian market. Hero Cycles Ltd had posted turnover of Rs 3000 crores during the financial year 2016-17 with a production of 5.5 million cycles. With its entry in the European market and acquisition of Firefox in India and Avocet Sports in UK, Hero Cycles Ltd. aims to grow toRs 8000 crore by 2020. BSH too is keeping up the pace, by growing 60% YOY. The projection for the coming year is a 100% increase.