Indian cycle manufacturer Hero Cycles is outlining plans to expand its retail business with the launch of 200 franchise stores under the brand name HeroOne across the country by the end of 2014.
The company has opened the first franchise outlet at Yusuf Sarai, New Delhi, reported India Retailing.
Commenting on the new plans, Hero Cycles co-chairman Pankaj Munjal remarked that the company is gearing up to revolutionize the cycle retail in the country through its new business model.
"Going forward, we plan to come up with such multiple stores in different cities of the country. The idea of setting up a store in Yusuf
Sarai is to get closer to the consumers and also offer products to consumers from different walks of life," added Munjal.
Hero Cycles, meanwhile, is furthering its manufacturing capacity by planning to develop two plants by 2014 with an investment of INR2bn ($36.5m).
"We are setting up a new plant in Bihar, which will be operational be January 2014. This will be followed by another at Mangli in
Ludhiana in the same year. The total investment one these two new plants will be around Rs 170 crore to Rs 200 crore," revealed Munjal.
"Currently our existing plant at Ludhiana has a capacity of six million units. The two new plants will manufacture cycles to cater to our export markets."
The company is also seeking expansion in the overseas market through acquisition of stakes in two European firms.