 "Punjab for China alliance to revive bicycle industry")
The bicycle and bicycle component hub of India at Ludhiana had been mired in stagnation for the past few years due to lack of innovation and the state government has pitched in to facilitate collaborations between Chinese and Indian companies to manufacture state-of-the-art bicycles in Ludhiana.
The state government has decided to set up the world's largest, high-end, electric bicycle manufacturing facility with a capacity of 15 million cycles per year, on an area of 300 acres, in Ludhiana. Deputy chief minister Sukhbir Singh Badal led a delegation of Indian bicycle manufacturers to Shanghai last week to explore the possibilities of joint ventures with Chinese companies. President of China Bicycle Association, Ma Zhaoyang Wang, has shown interest on behalf of the Chinese industry to forge partnerships with the Indian bicycle industry.
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According to United Cycle Parts Manufacturing Association (UCPMA) of Ludhiana, cycle exports from India declined from an estimated Rs 1,500 crore to Rs 1,200 cr over the past five years and imports surged from Rs 300 cr to Rs 2,000 cr during the same period. Charanjit Singh Vishwakarma, president of UCPMA, said there was a big room for manufacturing of high-end bicycles and affordable technologies were needed to beat imported bicycles.
Dwindling exports and stagnating production shows the deteriorating health of the Ludhiana cycle cluster and technological tie-ups are imperative to revive the industry, he added.
Ludhiana, with 4,000 bicycle and bicycle part manufacturers, produces nine million bicycles per year. With 90 per cent of bicycles in India manufactured in Ludhiana, the cluster in the city recently has been thriving only on the government purchases of cycles.
| CYCLING AROUND LUDHIANA |
| 15 mn bicycles Per year will be made by the world's largest, high-end, bicycle manufacturing facility, to be set up by the Punjab government, in an area of 300 acres, in Ludhiana 9 mn bicycles Per year made in Ludhiana 4,000 Bicycles and bicycle part manufacturers in Ludhiana 90% bicycles In India manufactured in Ludhiana |
Gaurav Munjal, managing director of Hero Ecotech, Ludhiana said the demand for high-end bicycles is growing annually at 15 per cent against four-five per cent for traditional bicycles. "Though the market share of traditional bicycles is 60 per cent, but it is shrinking gradually, so we need to focus on high-end bicycles. India is not a member of GSP (Generalized System of Preferences), a US trade preference programme that provides opportunities to the poor countries to grow trade, so we have to compete with GSP countries and this makes us uncompetitive," he said.
We also pay 14 per cent export duty in the European market. So, growth of infrastructure for high-end bicycles will help us manufacture low-cost bicycles and compete in the international market," he said.
The facility, which will be known as Cycle Valley, will initially provide employment to 150,000 persons and go up to 450,000 once it reaches its full potential, informed a Punjab government official, who was a part of the delegation to Shanghai. He also said the project would revolutionise bicycle production. "We expect Punjab to become a hub for the export of high-end bicycles as the creation of a unique eco-system will result in reduction of cost by up to 20 per cent. The industry will benefit by the housing of manufacturing units and ancillaries in one location," he said.
He said Hero Cycles will be the anchor client and strategy partner for the venture, for which best manufacturers and ancillaries in India and abroad will be invited to set up facilities. "We are offering pre-cleared sites to all investors, along with quick clearances," he said. The Chinese delegation will visit Punjab shortly.