Hero paddles its way to premium cycle market in India
Reckoning the growing demand for premium bicycles in the country, Hero Eco set its foot in the domestic market under the brand name ‘kross’. This is the company’s maiden entry into the domestic market as earlier, it was into exports of premium bicycles under the brand name Hero, owned by the company Hero Exports Limited.
Hero Exports Limited is owned by Vijay Munjal (one of the Munjal brothers of the erstwhile Hero Group), which has interests in electric vehicles, bicycle exports, medical equipments, real estate and fitness/sports equipments.
Talking to Business Standard on the sidelines of the national launch of the bicycle, Vijay Munjal, Group Chairman, Hero Eco, said there has been an exponential growth in the demand for fancy bicycles.
"As the Indian market has reached its maturity level, we decided to foray in the domestic market with the world-class bicycles. Alloy rims, nylon tyres, butyl tubes, automotive grade paint, high-quality hardware are the features that give an edge to the Kross bicycles over the existing brands," he said.
He added the company plans to invest Rs 100 cr in the bicycle manufacturing at Ludhiana in the next five years to match the projected demand in Indian market. The company expects to sell close to 80,000 bicycles in next five years.
Munjal added there was a demand-supply mismatch in this segment and hence, there is enough room for growth.
In the introductory phase, 14 models for different age groups have been rolled out and over 25 new models would be added in the product portfolio in the next two years.
Munjal indicated the company was exploring viable proposals to put up manufacturing plants in overseas locations but declined to give the details.
Kross has been rolled out in the states in north and after a few months, it plans to expand down south and west of India.