Riding on a strong global demand for bicycles, e-bikes and automotive components, HMC Group is set to cross Rs.1000 crore in exports and international revenue by FY22, an increase of 92 per cent over FY 21. The Group has set a target for further trebling this figure to Rs.3000 crore by FY 24, banking on high growth in the European and American markets.
The projections come at a time when HMC Group, the world’s largest integrated bicycle manufacturer, marks its 65th Founder’s Day, celebrating a remarkable journey that has propelled India to a central role in the global bicycle industry. In the 65th year, the company further consolidated its place as a reliable supplier in the global market while bringing suppliers and manufacturers under one umbrella at the ‘Atmanirbhar’ manufacturing hub in the form of 100-acre Hero Industrial Park.
Gathering virtually on account of COVID-19, the Hero family paid rich tributes to its visionary founder O P Munjal, an astute businessman, a poet and a philanthropist who revolutionised mobility for the masses in the post-Independence India. An expert in turning obstacles into opportunities and outsmarting competitors by creating value for the consumer, Munjal set the stone rolling for a humble component manufacturing firm that has become a market leader with about 43 per cent share of the organised bicycle market in India. O P Munjal was one of the first to explore the idea of manufacturing electric bicycles in India as early as the 1990s.
“From starting in 1956 with a loan of Rs.50,000 and producing 25 cycles a day to achieving the feat of the world’s largest integrated bicycle manufacturer with an asset base of USD 1.2 billion, the journey of Hero Cycles has been that of love, passion, grit and above all, a deep connection to our roots. These are and will remain our guiding star in the years to come – we feel privileged and honoured to expand the dream of Munjal brothers and transform their vision into a reality. With the first batch of ‘made in India’ HNF e-bikes to the European market and the launch of Hero E Cycle Valley, we are looking forward for robust global expansion and mark a major leap for indigenous manufacturing. We are confident of crossing Rs. 1000 crore of exports and international revenue and meeting another ambitious target of Rs. 3000 crore by FY 24,” said Pankaj M Munjal, Chairman and Managing Director, HMC, a Hero Motors Company.
During the pandemic, Hero Cycles has retained its market-leading share of about 43 per cent in the organised industry and led what is termed by CRISIL as the decadal-high growth in demand for cycles. With the plan to expand the business, this year on the day of Baisakhi, Hero Motors Company unveiled its new hi-end export-oriented manufacturing plant at the ambitious Hero E Cycle Valley, giving the company an edge in production of premium bicycles and E Cycles.
Envisaged as a manufacturing hub for the global market, the new plant ‘Hero E Cycles Ltd’ marks a major leap for the ‘Make in India’ initiative and prompts the company’s e-cycles arm to become a key supplier to the world market, curbing its overdependence on China. Operationalising the first phase of the Hero E Cycle Valley (Hero Industrial Park) will augment HMC’s annual production capacity to 10 million units, with a production of 4 million premium bicycles and e-cycles, majorly for global consumption. The Park aims to achieve complete localisation of component production by housing a series of international suppliers.
On the international front, Hero International – the European bike and e-bike arm of Hero Motors Company (HMC) established in March 2021– aims to achieve organic revenue of up to €300 million by 2025, while adding € 200 million from inorganic growth. The company has made major strides towards establishing a global presence through a series of strategic alliances and acquisitions. Acquisition of UK brands Avocet Sports and Insync, setting up of a global design centre in Manchester and acquisition of German high-end e-cycles manufacturer HNF are some notable initiatives in the direction of gaining a strong global foothold.