Hero Cycles Ltd today said it will start manufacturing aluminium frames for its sports and luxury bicycles following the setting up of a new assembly unit at Ghaziabad.
The company, which has been importing the frames since it forayed into the top-end segment earlier this year, said the new unit has been set up with an investment of Rs 21 crore in Phase I, and will go to about Rs 50 crore in Phase II. It is capable of rolling out 1.2 lakh frames per annum.
The new unit has been incorporated in the manufacturing facility of Hero Motors in Ghaziabad, the company said in a statement.
"So far Hero Cycles has been importing the aluminium frame which is required to manufacture the high-end/sports bikes. To maintain the precedence of staying ahead of competition all the time, it was imperative that we have our in-house manufacturing unit for aluminium frames as well," Hero Cycles Co-Chairman & MD Pankaj Munjal said.
With this new unit the company will not only be able to meet the domestic demand but also be able to meet export goals, he added.
So far the company has a lone factory in Ludhiana that produces only steel frame for black cycles.
"We are manufacturing over 18,500 bicycles daily and are not able to fulfil the demand. This [new] plant will not only help fill the gap but also help us respond faster to consumer demand which is ever changing in today's scenario as compared to importing the Aluminium frame," Hero Cycles MD (Works) S K Rai said.
Hero Motors' plant in Ghaziabad produces precision automotive components for their global customers such as BRP Rotax, BMW and Harley Davidson.