Premium bicycle parts maker Spur Technologies on Wednesday announced setting up of a manufacturing unit at the upcoming Hero Industrial Park at Ludhiana, in Punjab, that is expected to scale up its production capacity by 300 per cent.
To be managed by Hero Motors Ltd, Spur is eyeing a major share in the USD 250 million global business by 2023, through the facility, which will help India become a strong components hub and significantly reduce imports of premium components, Spur Technologies Pvt Ltd said.
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Spur Technologies is a subsidiary of Hero Motors Company.
At present, Premium bicycle parts maker's product-line consists of the front suspension forks, double wall alloy rims, BB cartridges, alloy stems and freewheels (single-speed).
However, the new unit will enable it to increase suspension forks, alloy rims and alloy handlebars cumulative production to nearly six million units from existing two million unit capacity, it said.
Manufacturing hi-end aluminium components for both domestic and global markets will be a key focus of the new plant, it said, adding the production will also help Hero Cycles accomplish back-end integration and significantly reduce imports of premium components.
"The new venture is set to revolutionise the Indian bicycle components segment and will help Indian bicycle sector achieve greater self-reliance throughout the entire manufacturing chain.
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"A key 'Make in India' initiative, the facility will enable Hero Cycles and the Indian bicycle industry at large to significantly reduce its imports of hi-end parts," said Pankaj M Munjal, Chairman and Managing Director, HMC.
The company looks forward to making India an exports hub for a wide array of hi-end bicycle components whose demand is surging globally, Munjal added.
Apart from helping existing vendors to gain from advanced technology development at Spur, the company will also support development of premium products and opening up of new markets, said the release.
Currently, some of the components are also exported to Sri Lanka, the UK as well as Germany, the company said.
Hero Industrial Park (HIP) is expected to boost Hero Cycles manufacturing capacity to eight million units in the first phase from the current six million units.
In phase one itself, HIP will add a production capacity of two million SKD (semi-knocked down) bikes, according to the release.
This story has been published from a wire agency feed without modifications to the text.