The country’s largest bicycle maker, Hero Cycles, which is part of Pankaj Munjal-led Hero Motors Group, on Thursday said it has bought Delhi-based Firefox Bikes for an undisclosed sum to expand its presence in the premium cycle market. The company said that the deal includes Firefox Bikes’ brands, accessories and spares along with exclusive distribution rights.
However, Firefox Bikes will be a distinct brand and will continue as a separate business entity post-acquisition. Bicycle manufacturers are increasingly betting on the country’s young and affluent urbanites to help establish a leisure riding culture.
Firefox Bikes is the largest brand in the country’s premium cycles segment.
“Through this acquisition, Hero Cycles will further expand its presence in all major categories of bicycles in India through its various brands such as Hero Cycles, UT, Firefox and UT Edge,” Hero Cycles chairman and managing director Pankaj Munjal said in a statement.
Firefox Bikes’ founder and managing director Shiv Inder Singh said that the acquisition will help Firefox to penetrate further into the Indian market.
“This deal will also help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our prospective customers,” he said. Singh will continue as the chief executive officer of Firefox Bikes under the new arrangement.
Hero has committed to investing in expanding and upgrading Firefox’s product range, which will hit the markets soon, Singh said. The aim is to provide customers with world-class products at every price range as per their fast evolving tastes and requirements, he added.
Hero Cycles, which produced 6 million cycles last year, will also be expanding the number of Firefox stores in India at a rate of 25 per cent from the existing 160 stores.
The premium cycle segment in India has been growing at 25 per cent compound annual growth rate (CAGR) over the past many years. FE