New Delhi: Atlas Products Pvt Ltd has tied-up with Taiwan-based Merida to sell their high-end bicycles in India and plans to open 25 exclusive stores across the country at an investment of Rs20 crore.
The national capital-based company has entered into an exclusive distribution agreement with Merida, through which it plans to sell about 3,000 bicycles a month in two-year time.
“We have tied-up with Merida to distribute their bicycles in India,” company’s director Ashwath Kapoor said.
Kapoor said the high-end bicycle have an average price at Rs15,000 while most expensive one is of Rs29,000.
The company plans to open 25 Merida stores in the next two years at an investment of Rs20 crore,“ he said, adding its first ‘Merida Bikes and Fitness´ store has been already opened in South Delhi and planning another in Gurgaon.
“Atlas Products Pvt Ltd has been allowed by the Supreme court to use the corporate name on its letter head with respect to correspondence with statutory and other authorities including sales tax, income tax and billings,” Kapoor said.
However, the Supreme Court dismissed Atlas Products’ plea challenging a Delhi High Court order that restrained it from using the trade name ‘House of Atlas´. “The Supreme Court restrained to use the name ‘Atlas´ on bicycles and bicycle parts,” Kapoor said.
Initially, the company plans to sell about 120-150 bicycles a month, he said, adding that the company would also use its own distribution channel to sell Merida bicycles.
Merida bikes is one of the biggest manufacturers of the high-quality bicycles in the world covering 55 countries, he said. Atlas Products, which sells ‘Premium Gold´ bicycle brand and has a turnover of Rs100 crore.