India’s bicycle and accessories market is expected to grow at a healthy pace over the next two years on the back of rural demand, shifting consumer preference towards premium products, export demand from Africa and Europe, and government welfare schemes.
In this context, the Punjab government’s announcement last December that it would set up a “Hi Tech Cycle Valley” in Dhanansu village, Ludhiana, through the Punjab Small Industries and Export Corporation (PSIEC), is timely.
The industry is clustered in Ludhiana, Punjab, and as many as 85-90 per cent of units are SMEs that cater to original equipment manufacturers (OEMs).
Of the 380 acres that the Hi Tech Cycle Valley would span, 30 acres will be for electricity generation facilities. Hero Cycles will develop clusters in 100 acres, and PSIEC in the remaining 250 acres.
The Hero Group (the largest domestic bicycle player) is expected to set up a plant with a capacity of about four million cycles per annum here. A facility to manufacture electric bicycles and an industrial park, along with ancillary units and vendor units, are also in the works.
It will help improve their current offering and give a boost to their export capability. The facility is also expected to have an underlying focus on generating more employment and increase the revenues of SMEs in the cluster.