Hero to launch new hi-end export oriented unit to manufacture electric cycles1 min read . Updated: 13 Apr 2021, 08:59 AM IST
The new export-oriented plant is expected to manufacture more than 70 per cent of production for the global market.
Hero Motors Company is all set to inaugurate its new hi-end export-oriented manufacturing plant at the Hero E Cycle Valley at Dhanansu on the outskirts of Ludhiana, Punjab later today. The unit will offer backend support to Hero's ambitious international plans.
The upcoming E-Cycles Valley project is expected to add a capacity of 4 million bikes and e-bikes.
It will mark the first phase of operationalisation of the Hero E Cycle Valley. The new manufacturing unit will increase the company's overall production capacity to 10 million units every year.
Pankaj M Munjal, Chairman and Managing Director at Hero Motor Company, said, "While Hero E Cycles factory augments our production capacity of premium bicycles and E Cycles for the global market, the Suppliers' Park at Hero E Cycle Valley will localise production of premium components to enable production of hi-end bikes in India."
Earlier, Munjal had said, "E-bike sales are expected to reach an estimated 30 million in Europe by 2030 growing at a CAGR of 26 per cent between 2024 and 2030. With Europe as our key market, HMC has set its sights on capturing a greater pie of this fast-growing e-bike segment with a goal of touching a revenue of Euro 300 million by 2025."
The new export-oriented plant is expected to manufacture more than 70 per cent of production for the global market. It spans about 100 acres, with 50 acres marked for the Hero E Cycles factory, and the other 50 acres for dedicated suppliers' park. The cost of building the unit has been more than ₹1,000 crore and took about two years.
Hero plans to spend about ₹350 crore to make the E Cycle Valley operational with the vendors pulling in another ₹400 crore. Additionally, Hero Motors Company plans to invest another ₹300 crore over the next couple of years.
Hero Cycles, which is a part of the Hero Motor Company Group, has a manufacturing capacity of 6 million bicycles per year. It has a network of at least three plants across India, located in Ludhiana in Punjab, Ghaziabad in Uttar Pradesh, and Bihta in Bihar. The company also has a state of the art manufacturing facility in Sri Lanka as well as a Design Centre in the UK. It also owns UK-based Avocet Sports, Germany-based HNF, and Firefox Bikes in India.