- Group’s turnover projected to scale Rs 2,600 crore this fiscal.
- Auto business sums up to about Rs 1,000 core in sales, a 10 percent growth from last year and the profits too being very healthy at 45 percent
New Delhi, 29th December 2017: Hero Cycles, part of Hero Motors Company (HMC) Group, has recorded 10 percent growth in revenues in the current financial year. Hero Cycles continues to dominate and surprise industry analysts with a steadfast growth curve reflecting the cycle business as a lucrative and strong focus area for the group. The growth in revenue is on account of some radical moves like the manufacturing hub in Sri Lanka and the coveted design centre HGD (Hero Global Design) in Manchester UK. Such a set-up has not only ensured top notch innovation but also a world class product pipeline which is being manufactured at a very competitive cost.
The other verticals comprising of the Auto OEM and Auto Components business too have been mirroring the cycle business with dynamic growth and new business acquisitions. The auto business now sums up to about Rs 1,000 core in revenue which is a 10 percent growth from last year and the profits too being very healthy at 45 percent by the end of the current financial year.
“The international companies acquired by us have not only brought in the best talent from across the world but cutting-edge technology which has put us in a commanding position to continue being the market leader in whichever business we operate in. Hero Global Design our state of the art design centre in Manchester is the nucleus of innovation and technology and their product lune ups have ensured that all our factories go up the curve in terms of design language of our products which are much ahead of competition in India and across the world. As a matter of fact, our NPD range has been receiving a very good response and now accounts for over 30 percent of our domestic sales ensuring that we continuously keep striving hard to maintain undisputed leadership across segments and categories,” said Mr Pankaj Munjal, Chairman & Managing Director, HMC Group.
In what can be termed as a rock solid performance, the transnational corporation HMC has been quietly bucking all trends and clocking some very strong numbers.
The HMC Group with a $ 1.2 b asset base and over 10,000 people across the globe comprises of the bicycle giant Hero Cycles, Auto parts manufacturing companies-Hero Motors Ltd, ZF Hero Chassis Systems Pvt. Ltd, and Munjal Kiriu Industries Pvt. Ltd, hospitality arm Munjal Hospitality and luxury home décor products company Oma Living.
Incorporated in 1956, Hero Cycles Limited is the largest cycle manufacturer in the world. The company has a manufacturing capacity of 7.5 million bicycles per year, with its unit in Ludhiana (Punjab), Bihta (Bihar) & Ghaziabad (UP). The company has a highly integrated plant in Ludhiana Ghaziabad (UP) and Bihta (Bihar) and a state of art manufacturing facility is Sri Lanka as well. The Ghaziabad facility also manufactures automotive rims and various other auto components for global automotive giants. In addition to the aforesaid the group also owns UK-based Avocet Sports and FireFox Bikes in India. While Avocet Sports was Hero Cycles’ first overseas acquisition and marked the company’s entry into mass segment of European bicycle market, the acquisition of Firefox Bikes was a strategic move to cement its position in the fast-growing premium bicycling segment in India.
Hero Cycles is a leader in both the standard and special bicycle segments in India, with an overall market share of about 35 per cent. The company is equipped with state-of-the-art infrastructure and the most modern machinery. A nation-wide distribution network with over 3000 dealers and the favourable location of its plants near vendors support its operations and facilitate competitive pricing of its bicycles. Hero Cycles also exports to various countries in Middle East, Africa, Asia and Europe.