Home >Companies >Hero Cycles to enter European market

New Delhi: Hero Cycles Ltd on Tuesday said it will enter the European market by acquiring local cycle retailers and distributers in the UK by July-end.

“This year we have allocated 800 crore just for acquisitions across segments in and outside India," Pankaj Munjal, co-chairman and managing director of the company, told reporters. “Goods will be manufactured in India and assembled in east Europe. This way we can study the market as well as consumer demand before we think of manufacturing abroad."

The company on Tuesday launched Hero RX-1, its first limited edition celebrity sports cycle named after Bollywood actor Arjun Kapoor, who was also named the company’s brand ambassador. Labeled ‘AK edition’, only 3,000 such cycles will be sold across metros for a period of one month.

The company has also tied up with Sports365.in, a sports-based e-commerce firm, to sell its bicycles. “This partnership will help maximize Hero’s online presence," said Aashutosh Chaudhari, Sports365’s vice-president.

According to Munjal, the average selling price of Hero cycles had gone up by 400 last year. However, online prices will be different and will be based on customer demand, he said.

Hero Cycles has a manufacturing capacity of 7.5 million cycles per year and its plant in Ludhiana produces 19,000 cycles a day. The company, with a market share of 35%, made 5.5 million cycles last year and generated sales of 2,000 crore. Hero Cycles also exports to various countries in the Middle East, Africa, Asia and Europe.

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