The current average annual powerful history and an envious record, Hero is
domestic demand for bicycles also India's largest exporter of cycles. It has a
Market
The Indian bicycle industry has become the
second largest in the world with an annual
production of more than 12 million bicycles –
defying the conventional market wisdom that
predicted the bicycle to be the dodo of the
21st century. According to figures from the
Engineering Export Promotion Council, India's
bicycle and components exports were valued at
Rs. 856.30 crore (US$ 178.40 million) in
2005/06 and rose to Rs. 890.02 crore
(US$ 185.40 million) in 2007/08.
The numbers for the industry
continue to be robust in spite of
the global slowdown. Much of
this is attributed to domestic
demand generated by several
state governments who
have, under various social
welfare schemes, placed
orders for 1.5 million
bicycles in 2009
(Source: Medium
Industry Development
Board, Punjab).
According to the
board, in the course of
the present year, the
orders are expected to
increase to 2.5 million units.
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in India is about 10 million. This
largesse translates into a 25%
increase in annual off take.
Hero Cycles is the industry
leader commanding a whopping
48% market share of the Indian
bicycle market collectively
across all segments (Source:
Nielsen). With a turnover of
Rs. 1450 crore (US$ 302.10
million) and an expanding
product repertoire, the
company is all set to maintain
its position of being not just
India's largest bicycle company
but as also the world's single
largest manufacturer of bicycles.
Achievements
Hero Cycles greatest
achievement is that the
company put the Indian bicycle
industry on steroids when it
muscled its way to the top of
the world's pyramid, more than
20 years ago. It has never
relinquished that spot and
continues to be listed in the
Guinness Book of World
Records.
Anticipating the emerging
sophistication in Indian markets,
Hero Cycles launched a
number of high-end models.
These included a specialised
range of fitness bikes as also
the first Mountain Terrain Bike
(MTB), the first City Bike and the first Racer
Bike in India.
In keeping with its aggressive marketing
strategy Hero Cycles set another landmark: it
became the first manufacturer in the world to
cross the magical production figure of 100
million bicycles in 2006, its Golden Jubilee
year. In the same year it achieved the
proud distinction of becoming the
first company to manufacture
5 million bicycles. With a
strong presence in 56 countries, including the
highly evolved and competitive markets of the
US, the UK, Germany, Spain and several other
countries in the European Continent.
Not surprisingly the company has won the
Engineering Export Promotion Council Best
Exporter Award continuously for the last
28 years.
History
In every crisis, says a Chinese proverb, there is
an opportunity. Forced to abandon their lives in
Pakistan by the traumatic fall out of the
partition in 1947, four brothers Dayanand
Munjal, Brijmohan Lall Munjal, Satyanand Munjal
and Om Prakash Munjal did not dwell on the
crisis but looked for the opportunity. They
surmised accurately that people in newly
independent India were in need of a cheap and
convenient means of personal transport. In
1956, they established a modest manufacturing
unit and made an even more modest beginning.
That year they manufactured 639 bicycles. By
1963 – in seven eventful years – they had
become a household name.
To ramp up capacity, the company acquired
Gujarat Cycles Limited in 1987. Renamed Munjal
Auto Industries Limited, the unit was ear-
marked to manufacture and export state-of-the-
art bicycles and allied products from its fully
automated plant at Waghodia. The company
further scaled up capacity by establishing a
second unit at Sahibabad, Uttar Pradesh
in 1988.
However, with markets growing rapidly and
the high net worth family looking at the bicycle
with renewed interest, Hero Cycles tied up with
National Bicycle Industries – a part of the
Matsushita Group of Japan – in 2002. The
collaboration was designed to bring together
Hero's distribution and manufacturing might and
National's technical competency to manufacture
the most high-end bicycles in India.
Today, Hero Cycles manufactures more than
18,500 bicycles each day, employs 4800 people
at its three state-of-the-art manufacturing plants
and has a dealer network of 3000 spread across
the country.
Product
Hero Cycles' greatest achievement has been
to put the 'wow' factor into bicycles, long
perceived as machines that were basic, black -
and boring. Hero has changed all that.
The range it has on offer is truly
breathtaking, cutting across all
socio-economic segments.
Remarkably, within each
such grouping, Hero comes
off making a lifestyle
statement.
Each model serves a
particular customer profile
touching it at a price point
that is at once attractive
and reasonable. It is this
that has allowed Hero the
 Recent of this wonderful and healthy sport. The launch
Developments of innovative products and their value as style
Environment and statements happened simultaneously. Hero
fitness consciousness Cycles was quick off the block and signed up
are the new market celebrities to position each product in the
mantras and the market. Film stars such as Sanjay Dutt, Rani
bicycle happily fulfils Mukherjee, Hrithik Roshan and Ameesha
both demands. This Patel have all appeared in advertisements
new twist to for this brand.
modern, urban living Working subliminally are associations that
is gradually filtering people either see or experience. To cash in on
through to all – this proven belief, the company has strategically
including town placed its products in feature films, where the
planners; there is protagonist is seen riding the bicycle. Of special
now talk of cycle mileage has been the Mani Ratnam blockbuster,
tracks becoming an Guru, in which the stunning Aishwarya Rai is
essential part of shown riding a Hero cycle.
cityscapes. In keeping In tune with its corporate philosophy and
with the changing focus on fitness, Hero Cycles has also been
aspirations of the promoting and patronising various games and
high-end Indian sporting events, including football's prestigious
consumer, Hero Federation Cup.
Cycles has geared
itself to launch an Brand Values
luxury of being able to cut through a massively enhanced range of top-end fun machines. A brand is built when it delivers on its promises.
cluttered market. But it is at the premium end Four new models targeted at the urban adult, In the case of Hero Cycles one part of that
of its collection where Hero has made the including the radical Thunder and Octane – the promise was commitment to quality, corporate
most difference. all-aluminum alloy light-weight all-terrain bikes integrity and customer-centricity. The other part
The men's range includes X Sport Zylo, DTB, have already been unveiled. To establish a was defined by the level of social responsibility a
Nitro, Sundancer, Sapphire, Platinum, Razorback, greater connect with
Cyclone and Street Race – all guaranteed to set the high spending
the pulse of every red-blooded male racing. All urban adult customer,
these variants are equipped with several special Hero has reoriented
features such as wider tyres for stunt riding, its market strategy.
special safety caliper brakes and extra rigid The brand has added
design to cope with hard and often rough a quotient of glamour
riding. For a less vigorous experience there are to the business of
the roadsters, racers and the latest all-terrain biking by opening
and city bicycles such as Hero Devil Dx, Hero stores at high footfall
Neon, Ranger Swing 21, Hero Buzz, Hero locations such as
Missile, Hero Terminator, Hero Salsa, Hero malls. Due for launch
Limbo, Hero Lambada, Hero Jet Gold, Hero are six premium
Royal Gold and Powerbike. The Ranger Swing bicycles developed
21 is India's most advanced high-performance to cater to the high
MTB, offering a 21-speed gear system. Hero demand in the
Buzz is India's first Y-frame bike. Technologically fancy children's
advanced, all-aluminium high-end bikes from bike segment.
Hero under the Octane Range have opened a In a landmark
new category in the premium segment. technological initiative,
The women's range consists of the recently Hero has set up
launched Miss India Platinum and Miss India India's first German
Sapphire, an upgraded Miss India Gold, Emerald paint plant with the revolutionary extra durable company shoulders and discharges. What has
and Ruby, while Hero bikes for kids include and shining (EDS) technology. This programme emerged from the meeting of these personal
attractively designed, colourful bicycles such as will ensure that every Hero cycle retains its philosophies is true success.
Sundancer, Blaze, Swirl, Boss, Fairy, Bang, Cherish, lustre and colour brilliance for up to five years. Hero's brand values are embodied in its
Tango and Chase which incorporate special In the very recent past the company has corporate vision of providing an inexpensive,
safety features for young riders. Brat, another entered into a strategic tie-up with ADIDAS to durable vehicle of transport at affordable prices.
cycle for kids, is designed with an international manufacture bicycles and bicycle components 'Engineering Satisfaction' is the catchphrase
high rise saddle. especially branded for them. that drives the company, today. Now fully
integrated into its work culture, this slogan is
Promotion responsible for the company's environment-
Until 1986, Hero friendly manufacturing processes and to the
was mainly brands' initiatives for benefitting the common
perceived as a man. In every one of these functions – and
manufacturer of the everything else in between – Hero Cycles has
basic black bicycle. demonstrated its willingness to go that extra
But evolving market mile – just like a true Hero.
needs mandated an
image change for www.herocycles.com
the company so
that it could get Things you didn’t know about
customers out
of the real and
Hero Cycles
metaphorical Hero Cycles manufactured 25 bicycles a day in
boxes of life and 1956
experience the
romantic abandon Today the company turns out one bicycle every
of cycling. 5.4 seconds, around-the-clock, around the year
The resulting
promotional One in every ten Indians has owned a Hero
campaigns were cycle at sometime in their lives
designed to sensitise Hero Cycles manufactures the widest range of
people to the bicycles including multi-speed variants
recreational aspects

SUPERBRANDS 95