Mumbai: Riding on strong global demand for bicycles, e-bikes and automotive components, Hero Motors Company (HMC) Group is set to cross Rs 1000 crore in exports and international revenue by FY22, an increase of 92 per cent over FY 21. The company has set a target for further trebling this figure to Rs 3000 crore by FY 24, banking on high growth in the European and American markets.
The projections come at a time when the integrated bicycle manufacturer HMC Group marks its 65th Founder’s Day.
“With the first batch of ‘made in India’ HNF e-bikes to the European market and the launch of Hero E-cycle Valley, we are looking forward to robust global expansion and marking a major leap for indigenous manufacturing," said HMC, chairman and MD, Pankaj M Munjal. "We are confident of crossing Rs 1000 crore of exports and international revenue and meeting another ambitious target of Rs 3000 crore by FY 24."
During the pandemic, Hero Cycles has retained its market-leading share of about 43 per cent in the organised industry and led what is termed by CRISIL as the decadal-high growth in demand for cycles. With the plan to expand the business, this year, Hero Motors Company unveiled its new hi-end export-oriented manufacturing plant at the ambitious Hero E Cycle Valley, giving the company an edge in production of premium bicycles and e-cycles.
Operationalising the first phase of the Hero E Cycle Valley (Hero Industrial Park) will augment HMC’s annual production capacity to 10 million units, with a production of four million premium bicycles and e-cycles, majorly for global consumption. The Park aims to achieve complete localisation of component production by housing a series of international suppliers.
On the international front, Hero International – the European bike and e-bike arm of HMC established in March– aims to achieve organic revenue of up to €300 million by 2025, while adding €200 million from inorganic growth. Acquisition of UK brands Avocet Sports and Insync, setting up of a Global Design Centre in Manchester and acquisition of German high-end e-cycles manufacturer HNF are some notable initiatives in the direction of gaining a strong global foothold.
