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Plans to do business with China worth Rs 900 crore shelved, says Hero Cycles

Hero Cycles' Chairman-cum-Managing Director (CMD) Pankaj Munjal announced on Friday that the company had shelved their plans as a commitment to boycott Chinese products.

Written by Raakhi Jagga | Ludhiana | Published: July 4, 2020 1:00:25 pm
Meanwhile, Hero cycles had been importing parts of high-end bicycles and even complete high-end bicycles as well which are purchased by professional bikers or even by persons for recreational activities.

After offering technical help to members of United Cycles Parts and Manufacturers Association (UCPMA) to reduce dependency on China, Hero Cycles’ Chairman-cum-Managing Director (CMD) Pankaj Munjal on Friday announced cancellation of upcoming trade ties worth Rs 900 crore with China.

Munjal, while talking with mediapersons, said, “In the coming 3 months, we had to do business worth Rs 900 crore with China, but we have cancelled all those plans. This is our commitment to boycott Chinese products.”

Meanwhile, Hero cycles had been importing parts of high-end bicycles and even complete high-end bicycles as well which are purchased by professional bikers or even by persons for recreational activities. Meanwhile, the price of high-end bicycles in the market is from Rs 15,000 to more than 7 lakh as well.

Munjal stated that they have snapped trade ties with Chinese companies and are searching for new markets now. Germany is the top market which Munjal is looking as a substitute to China. He said that Hero Cycles is planning to set up their plant in Germany from where, they can cater to the European markets.

Munjal stated that demand of bicycles has increased worldwide in the past few months and Hero Cycles is also increasing its capacity to cater to this increasing demand. However, he admitted that small companies have suffered losses during lockdown period. He added, “This is the reason that we have come forward to help them and hence are ready to provide them technical help so that they can start making high-end bicycle parts which are being imported from China.”

‘Cycle Valley’ can compete with China

He said, “Once Cycle Valley at Dhanansu village of Ludhiana comes up, we can easily compete with China. If India can make the latest computers, why can’t we make hi-tech bicycles.”

He claimed that every type of bicycle manufacturing is possible in India. He stated that he had discussed losses suffered by small units with Punjab’s Industry Minister.

Meanwhile late on Friday evening, he also visited the site of Cycle Valley along with Ludhiana DC Varinder Kumar Sharma. Chinese companies had plans to invest in this valley which will focus only on high-end bicycles. The planned Cycle Valley is to come up in 100 acres of land at a cost of Rs 400 crores. Land acquisition has already been done.

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