Addresses media on his plans to bolster the bicycle Industry

Ludhiana, 24th February 2012: Mr. Pankaj Munjal, Co-Chairman and Managing Director, Hero Cycles, today addressed the media on the occasion of his joining as the president of All India Cycle Manufacturers’ Association (AICMA). He replaced Mr. Arun Alagappan as the president of AICMA and took over his responsibilities on Thursday 23rd February 2012. His presidential tenure at AICMA is for one year.

Speaking on the occasion Mr. Munjal said, “It is a great honour to take over as the president of AICMA. Since its inception in 1984, AICMA has been instrumental in bringing in lot of positive changes for the Indian bicycle industry. As president, my endeavor would be to bring about sustained growth of the bicycle industry both in domestic as well as in export sectors.”

He spoke to the media in the city regarding his plans ahead to accomplish his mission of having sustained growth of the bicycle industry and his outlook on the industry; its trends, challenges along with some probable solutions “The bicycle business is about 130 million units in size and $ 30 billion in value in terms of market worldwide. However, In India we are merely a $ 1.2 billion market only which is just 4% in terms of value in the world trade. There seems to be some fundamental fallacy which needs to be addressed here, the tax structure. There is 12% tax on bicycle which is an item of basic necessity for economic class and that too a medium which brings him economic progress” he further added stressing on the point that as a president of AICMA he will stress on the reform of the tax structure.

Mr. Munjal also spoke about a host of other issues. He said that the waiver could foster the expansion of the cycle market that stands at about 15 million units annually now as compared to 80 million units in China.  Additionally, by making the sector duty-free and equalizing the freight charges across India; the exports of premium cycles could also increase up to $ 5 billion every year from about $ 200 million at present. He also said that there is a need to match the duty drawback norm and freight subsidization in line with China. The aim would be to nurture a $ 2 billion export market. Moreover, like the automobile cluster there is a call for to work together, to upgrade the technology of suppliers with the help of Institutions like QCFI. Realizing that India still has 500 million people who cannot afford a cycle, it was suggested that the bicycle industry should be excluded from the GST.

About AICMA:

All India cycles manufactures association established in the year of 1984 represents around 95% of bicycle production in the country. The primary objective of the association is to bring about sustains growth of the bicycle industry especially with the reference to the vital contribution it made by the registered integrated units. The association has been instrumental in promoting phenomenal growth of Indians bicycle industry both in domestic as well as in export sectors. It acts as liasioning body with the government to highlight industry's problem and also provides a forum for its members to discuss ways and means to improve upon its functions. AICMA keeps track of development in the industry and shares information with its members it helps the industry in sharpening its focus on R&D efforts and technological up gradation. Export promotion is one of its major thrust areas.

About Hero Cycles:

Established in 1944, Hero Cycles’ success saga contains the element of courage, determination, entrepreneurship and perseverance coupled with vision and meticulous planning. A familiar name in every Indian’s story Hero Cycles is among the oldest entities of the Indian bicycle market.

From a modest beginning of mere 639 bicycles in 1956, Hero Cycles now produces over 18500 cycles a day and has an annual turnover of Rs. 1700 crores. With the 48% share of the Indian market, this volume has catapulted Hero in the ‘Guinness Books of World Records’ in 1986 and edge over global players is being maintained since then. Hero Cycles manufacturing plant in Ludhiana is the largest bicycle manufacturing plant in the world. Hero Cycles is the World's largest manufacturer of bicycles with annual sales volume of over 4.8 million cycles. Hero Cycles is headed by Mr. Pankaj Munjal, MD, Hero Motors. Mr. Munjal plans to take forward the company to a higher summit by harmonizing the old and reliability with the contemporary, modern and exposing it to new unaccustomed market.

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