Hero’s high-end plant to start ops at Ludhiana Cycle Valley today
LUDHIANA : Five years after the ambitious Cycle Valley project in Dhanansu village was first mooted and less than two years after the Punjab government allotted 100 acre to Hero Group, the company announced launch of its highend export-oriented manufacturing plant at the Hero E-Cycle Valley. In the Valley, the Hero E Cycles Factory is housed on 50 acre, with another 50 acre earmarked for a Suppliers’ Park.
“With Hero Motor Company’s Research and Development (R&D) facilities in Europe (Germany and UK), Hero E-Cycle Valley has been envisaged as a manufacturing hub to meet rising demand for global exports,” said chairman and managing director, Hero Cycles, Pankaj Munjal. He added that the factory will augment production capacity to 10 million (one crore) units a year, with a production of four million (40 lakh) premium bicycles and E-Cycles, mostly for global sales.
“It is a great moment for us that we are launching this plant on Baisakhi,” said Munjal. An investment of over ₹ 1,000 crore has been made, over two years, in total outlay to operationalise the E-Cycle Valley and grow Hero International in the EU and UK.
The Hero Motor Company (HMC) is spending Rs 350 crore on operationalising the E-Cycle Valley, vendors are bringing Rs 400 crore. The HMC plans to invest Rs 300 crore in R&D and distribution across the EU and the UK.The Suppliers’ Park will localise production of premium components.
Premium bicycle parts maker, Spur Technologies, a subsidiary of Hero Motors Company, has set up a manufacturing unit at the Valley.
Hero Cycles is in talks for joint ventures with international players for electric motor localisation and for manufacturing international quality alloy frames and suspension in India.
The project was first mooted in 2016 and was created as part of the government’s strategy to bolster industrial sector in Punjab and create jobs. In January 2019, Punjab government allotted 100 acre to Hero to develop its own anchor unit.