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Hero Cycles to Grow 60% by 2022 and UK Will Help It

Sreeram said the UK operations would not only go a long way to help the company grow at a robust pace but would also transform the way it caters to the Indian market.

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Sreeram said it was natural for Hero Cycles to
Hero Cycle to grow by expanding in uk, wikimedia commons

As India’s iconic Hero Cycles makes inroads into the UK and European markets with the launch of 75 bikes under its new “Insync” brand, the worlds biggest bicycle manufacturer aims to grow by over 60 per cent over the next four years, says Sreeram Venkateswaran, head of the companys UK operations.

He said that from a $800-850 million company (across all its businesses, including automotive), it is poised to become $1.3 billion to $1.4 billion company by 2022, with Europe and bicycles being an “extremely important component” of that growth story.

Sreeram told IANS in an interview that with the launch of the Insync brand, the company not only aims to penetrate the mid-premium segment of the European market but also transform the way it caters to the Indian market.

In 2015, Hero Cycles had acquired the UK’s Avocet Sports to expand its footprint into Europe and Sreeram was appointed Avocet CEO. Last year, the company opened a global design centre in Manchester to design bicycles of global standards. The 75 new cycles are the first of the lot designed at the $2.7 million Hero Cycles Global Design Centre.

Sreeram said it was natural for Hero Cycles to “get out of the well called India” if it had to transform itself into a strong global player from “value perspective” from being one of the largest manufacturers from a “volume perspective”.

The 75 new cycles are the first of the lot designed at the $2.7 million Hero Cycles Global Design Centre.
Cycling, Representational image- Pexels

“Just from the figures perspective, India does about 17 million bicycles a year and the total value is $1 billion. UK does about 2.75 million bicycles a year and the business is worth about $2 billion to $2.1 billion. Europe does about 21 million bicycles and the business is about $12 billion,” he said.

At the same time, the company’s Europe and UK plans are in sync with its growth plans in India, Sreeram said.

With India’s medium- to high-end cycling segment growing at about 25-27 per cent over the last one-and-a-half years, Hero Cycles plans to optimise the Insync brand models for the Indian market and then take them back home.

“Also, having the ownership of Firefox in India, which is clearly the market leader in the mid to high-end bikes, we are well poised to garner a disproportionate share of the growth as the market starts to grow,” he said.

Sreeram said the UK operations would not only go a long way to help the company grow at a robust pace but would also transform the way it caters to the Indian market.

“UK happens to be in a very nice cusp of market development. It’s about three to four years behind mainland Europe and it’s about three to four or five ahead of the Indian development cycle.

As Indias iconic Hero Cycles makes inroads into the UK and European markets with the launch of 75 bikes under its new "Insync" brand
Hero Cycles to expand in UK, pexels

“What it does from a business perspective is that while usually a bike range has shelf life of one year, a facility in Manchester gives me an opportunity to extend that shelf life to three to four years,” Sreeram said.

“So any investment I make into design and development of bicycles here in this facility has actually four times the value that can be extracted compared to any other company which is solely based out of Europe or the UK and selling only in this market. That’s a huge advantage,” Sreeram said.

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The facility in the UK and designing bikes for the European market make it necessary for the company to also keep updating the design and manufacturing team back home in India to bring it at par with what is required by a European customer, he added.

“So they start looking at quality from not what a guy in Latur would want but as what a guy in Luxemburg will want. That’s the difference we have to create even from a quality perspective.

“These are the kinds of things that are slowly getting imbibed in the entire manufacturing chain which makes us a much more robust and stronger company,” he added. (IANS)

Next Story

Air Pollution ‘Largest Environmental Risk to Public Health in UK’: Report

Cosford said a key challenge was the commonly held view that actions to reduce air pollution run counter to economic growth and development

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China
Chinese censors have erased online debate over US-China trade negotiations as the two countries appeared to back away from a trade war.

Public Health England (PHE) has put forward a series of recommendations aimed at reducing the 28,000 to 36,000 deaths a year in Britain attributed to long-term exposure to polluted air.

One recommendation in the 250-page PHE report published here on Monday was for town and city councils to be given powers to implement no-idling zones to stop people leaving their car engines running while waiting outside schools, hospitals and care homes.

Another proposal would see low-emission or clean air zones to discourage the most highly polluting vehicles from entering populated areas, Xinhua news agency reported.

The report said that air pollution was the biggest environmental threat to health in Britain with strong evidence that air pollution causes the development of coronary heart disease, stroke, respiratory disease, lung cancer and exacerbates asthma.

“The evidence is clear on the scale of harm from air pollution. It is the largest environmental risk to the public’s health in the UK,” warned the report.

Delhi. air pollution
A man rides his bicycle in front of the India Gate shrouded in smog in New Delhi, Dec. 26, 2018 (Representational image). VOA

“People are exposed to outdoor air pollution in the places where they live, work and spend their leisure time. Whilst there are opportunities for individuals to reduce their personal exposure, or that of their children, these are limited,” it said.

The document said that public spaces should be redesigned so people aren’t so close to highly polluting roads by making streets wider or using green hedges to screen against pollutants. There should also be more investment in clean public transport, footpaths and cycle paths.

Professor Paul Cosford, PHE’s Medical Director, said: “Action is needed at all levels to address this unacceptable, serious and avoidable source of harm to our health. We all have a role to play in helping to make sure that the air that we, and future generations, breathe is clean air.”

Also Read- Researchers Develop Novel Method to Predict Mortality in Elderly

Cosford said a key challenge was the commonly held view that actions to reduce air pollution run counter to economic growth and development.

In January, the British government announced a “Clean Air Strategy” setting out plans to meet ambitious legally binding international targets to reduce emission of the five most damaging air pollutants by 2030. It will be followed by a wider Environment Bill. (IANS)