Chennai-based TI Cycles of India has set up a new manufacturing facility at Rajpura in Punjab, with an investment of Rs 105 crore, and will cater to growing demand for cycles in north and eastern parts of the country.
The new facility, the company's largest, will have manufacturing capacity of 2.50 lakh per month. The plant will be inaugurated tomorrow.
"Being in Punjab it means a lot to us. Punjab being the home for bicycle industry, we are pleased to be here," said TI Cycles Chairman and Murugappa Group Vice Chairman MM Murugappan.
"The plant has been built with an investment of Rs 105 crore and it will cater to the demand of bicycles in north and eastern parts of India," he said.
"Initially, we will make 10 lakh cycles and we will build capacity progressively," Murugappa said.
TI Cycles, part of Rs 29,700 crore Murugappa Group, has three other manufacturing facilities at Noida, Nashik and Chennai.
The new facility will provide direct and indirect employment of around 3,000 people.
"We had to look for additional capacity, there is more market here, Ludhiana is nearby and a lot of ancillary industries are here and we decided to set up plant here," said TI Cycles MD, L Ramkumar.
The company decided to set up plant in Punjab after Deputy Chief Minister Sukhbir Badal, who visited Chennai in December 2014, invited companies to set up facilities in the state, TI Cycles President Arun Alagappan said.
TI Cycles sold 45 lakh bicycles including 65,000 exports last year and clocked turnover of Rs 1,488 crore in 2015-16.
