Hero Cycles mulls expansion via franchise route

Cycle manufacturer Hero Cycles has opened its first-ever franchise store, HeroOne, in the country at New Delhi. Spread over 1,200 sq.ft., the outlet is located at Yusuf Sarai. The brand would invest about Rs. 200 crore for setting up two new plants in the country by 2014. Hero Cycles that traditionally sells its products through dealers and multi-brand retail outlets is making a conscious effort to reach out to its customers directly through the franchise network.

Talking about the company’s expansion plans, Ankur Thakur, Vice President Marketing, Hero Cycles, says: “We are setting up a new plant in Bihar, which will be operational by January 2014. This will be followed by another plant at Mangli in Ludhiana in the same year. The two new plants will have installed capacities of one million cycles per annum each. He also added, In due course of time we will enter A and B class towns. The kind of experience a customer gets will be significantly different.  By launching our own retail franchises, we are trying to change the look of cycle retail in India, and bring it at par with other lifestyle products. Going forward, we plan to come up with multiple such stores in different cities of the country,” Thakur said.

Established in 1944, Hero Cycles produces approximately over 19,500 cycles a day. According to the company officials, its manufacturing plant in Ludhiana is the largest bicycle manufacturing plant in the world. The company has set a target of opening 200 'HeroOne' stores during this ongoing fiscal.