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One of India's leading bicycle makers - Hero Cycles, has cancelled an upcoming Rs 900 crore deal with China as part of its commitment to boycott Chinese products and stated that Cycle Valley can definitely compete with Chinese companies.
Pankaj Munjal, the Chairman and Managing Director of Hero cycles has said that the company has cancelled its upcoming Rs. 900 crore business deal with China. This decision has come after the effects of the Boycott Chinese Products that have taken momentum in the country.
The Government of India had 59 Chinese products and the people are advocating towards the Boycott China movement for the past few weeks. This movement got its required momentum after the incident that happened at the Line of Action Control of Galwan Valley in Eastern Ladakh. Chinese PLA troops killed 20 India soldiers in the clash and thus began the India china clash and the tension among the two nations.
Hero Cycles have also offered technical help to members of United Cycles Parts and Manufacturers Association (UCPMA) to reduce dependency on China. Pankaj Munjal announced the cancellation of the 900 crore business dealon Friday with China.
The business deal was scheduled for the next 3 months and China was going to invest in Indi’s own cycle manufacturing unit. But Hero Cycles cancelled it to show commitment towards their nation and the anti-China movement.
Hero cycles has also been importing parts of high-end bicycles and even complete high-end bicycles as well which are purchased by professional bikers or even by persons for recreational activities. Meanwhile, the price of high-end bicycles in the market is from Rs 15,000 to more than 7 lakh as well.
Munjal stated that they have cancelled trade ties with Chinese companies and are searching for new markets now. Germany is the top market which Munjal is looking as a substitute to China. He said that Hero Cycles is planning to set up their plant in Germany. Germany plant implies that Indian Hero Cyclec can enter and cater the European Markets as well.
The demand of bicycles has increased worldwide in the past few months and Hero Cycles is also increasing its capacity to cater to this increasing demand. However, he admitted that small companies have suffered losses during lockdown period. Hero Cycles is coming forward to help the small businesses and provide them with technical help to help them and push them to start making high end bicycle parts which were earlier imported from China.
Once Cycle Valley at Dhanansu village of Ludhiana comes up, Hero Cycles can easily compete with China, said Munjal. If India can make the latest computers, why can’t it make hi-tech bicycles?
He claimed that every type of bicycle manufacturing is possible in India. He stated that he had discussed losses suffered by small units with Punjab’s Industry Minister.Meanwhile late on Friday evening; he also visited the site of Cycle Valley along with Ludhiana DC Varinder Kumar Sharma. Chinese companies had plans to invest in this valley which will focus only on high-end bicycles. The planned Cycle Valley is to come up in 100 acres of land at a cost of Rs 400 crores.
By Deepika Agarwal
