Hero Motors Company unveiled its new hi-end export-oriented manufacturing plant at the ambitious Hero E Cycle Valley, giving the company an edge in production of premium bicycles and E Cycles. Envisaged as a manufacturing hub for the global market, the new plant ‘Hero E Cycles Ltd’ marks a major leap for the ‘Make in India’ initiative.
The opening of the new plant marks the first phase of operationalization of the Hero E Cycle Valley (Hero Industrial Park). The plant will augment HMC’s annual production capacity to 10 million units even as the overall E Cycle Valley will achieve complete localisation of component production by housing a series of international component suppliers.
The new export-oriented plant is crucial for HMC’s ambitious global expansion plans and is expected to manufacture over 70 per cent of production for the global market.
The Hero E Cycle Valley which houses the new plant is a significant milestone in HMC’s global journey and is a critical link towards establishing the company’s global engineering & manufacturing chain. While 50 acres of the Valley houses the Hero E Cycles Factory, another 50 acres has been marked for a dedicated Suppliers Park. With HMC’s global design, engineering and R&D facilities centred in Europe (Germany and UK), Hero E Cycle Valley has been envisaged as the manufacturing hub to meet the rising demand for global exports.
Over Rs, 1,000 crore is being undertaken over two years in total outlay to operationalise the E Cycle Valley and grow Hero International in EU & UK. While HMC is spending Rs 350 crore in operationalising the E Cycle Valley, the vendors are bringing in an estimated Rs 400 crore. Additionally, HMC plans to further invest Rs. 300 Crore over the next couple of years to fortify its brands, R&D and distribution across EU & UK. which becomes a pivot for its global ambitions.
“While Hero E Cycles Factory augments our production capacity of premium bicycles and E Cycles for the global market, the Suppliers’ Park at Hero E Cycle Valley will localise production of premium components to enable production of hi-end bikes in India. With bicycle manufacturing shifting base globally and many brands looking for alternatives to China, a vibrant ecosystem at the Valley gives India a huge potential to be on the global map of production. As HMC looks to expand its global footprint, we have envisaged an engineering and manufacturing chain spread across continents. With our design and R&D facilities centered in Europe, our strengthened manufacturing base in India will help provide us greater cost benefit. The E Cycle Valley gives HMC a major leap towards realizing our goal of becoming a prominent global player by 2025,” said Mr Pankaj M Munjal, Chairman and Managing Director, HMC, a Hero Motors Company.
Spread across a sprawling 100 acres, the Valley is expected to employ over 9,000 people when fully operational. The Park is establishing a complete ecosystem for international component suppliers to localise production and help India eliminate its dependence on premium component imports.
HMC is already in advanced talks to finalise a Joint Venture with an international player for Electric Motor localization and another JV for manufacturing international quality Alloy frames, suspension and CVT in India. Premium bicycle parts maker Spur Technologies, a subsidiary of Hero Motors Company, has already set up a manufacturing unit at the Valley.
With hi end component localization and innovation center, the ecosystem is expected to upgrade HMC’s manufacturing capability to make bicycles priced at USD 150-500, and e-bikes USD 1000 to 5000 against USD 60 today. The best in class ecosystem and a ‘Make in India’ hub will enable India to become a global hub of manufacturing international quality bicycles, E Bikes and Auto components.