Rising domestic market for bicycle manufacturers

For the cycle and cycle part manufacturers, the wheels keep rolling even as they continue to struggle for a formidable position in the exports arena, courtesy some measures by the federal government.

With around 12 million to 13 million bicycles manufactured in India last year, around 1.8 million to 2 million bicycles were utilised by various state governments, which distributed the cycles amongst the masses under various schemes. The states mainly comprised of Tamil Nadu, Karnataka, Gujarat, Jharkhand and Uttar Pradesh. Least concerned with the scheme under which bicycles are distributed, the cycle and component manufacturers in Ludhiana are elated. Last year, the Punjab government had expressed a similar intention to distribute free bicycles to the girl students . This year, the cycle and cycle part manufacturers are looking to gain business from the Punjab government as well.

According to the estimates of the United Cycle Part Manufacturers Association (UCPMA), the bicycle industry in India is pegged at Rs 5,000 crore with Ludhiana comprising 90 per cent of the total bicycle industry of India. “This indeed is silver lining for us,” asserts Gurpreet Singh, vice-president, UCPMA. With cycle-part manufacturers finding it tough to compete in the export market owing to variable reasons, orders placed by the government keeps the cycle pedaling for bicycle manufacturers in Ludhiana.

A senior official from the Hero Cycles Limited maintained, the orders from federal government constituted 18 per cent to 20 per cent share of the overall sales for bicycle manufacturers. With cycle manufacturers struggling to compete on global scenario, the domestic push indeed was an impetus for the industry.