Hero Cycles Limited, based in Ludhiana Punjab, India, is the largest bicycle and related products manufacturing company of India. Hero group was started by the four Munjal brothers, hailing from a small town called Kamalia, now in Pakistan in the year 1944 by establishing bicycle spare parts business in Amritsar. After independence and partition of India, they moved to Ludhiana and started a bicycle unit called Hero Cycles in 1956. By 1975, Hero cycles became the largest bicycle manufacturer in India. In 1984, Hero group joined Honda Motors of Japan to create Hero Honda Motors Limited which soon became one of the market leader in motor-cycle sales in India. In 1986 Hero Cycles Limited entered the Guinness Books of World Records as the largest bicycle manufacturer in the world. It has a 48% market share in the Indian bicycle industry. Annual sales volumes of over 4.8 million makes it the largest bicycle manufacturer in the world. Hero Cycles rolls out around 18,500 units every day.
India is the second largest bicycle producer of the world. It has seen a tremendous increase in the number of bicycle manufacturers and bicycle exporters in the recent past. Today, Indian bicycle manufacturing and bicycle spares industry is well accepted and is also widely recognized for its quality standards in the international market. There is a significant scope for export of Indian bicycles, bicycle spare parts and bicycle accessories. The approximate export and import figures of bicycle for the year 2006-07 were Rs.133.7 crore and Rs. 31.7 crore, respectively. The total production of all kinds of bicycles in the organized sector has been 105.98 lakh numbers during the same year. During 2007-08 (upto December 2007), it was reported at 81.13 lakh numbers. The industry has been delicensed and is allowed 100 per cent FDI under automatic approval
The Indian bicycle industry is facing some challenges....