To set up facility for the premium range.
Hero Cycles has forayed into the premium bicycle market with the launch of its new product, Red Dot. Priced at Rs 43,000, this new bike is a part of Hero Cycles new brand – Urban Trail, under which it will roll out all the luxury bicycles.
The company has entered the premium segment looking at the changing socio-economic scenario, which is moving towards luxury. With Urban Trial, the company wants to make its mark in the premium segment.
The company is going high on the luxury note as it is also setting up a dedicated unit at a cost of Rs 50 crore at Ludhiana, to manufacture the Urban Trail range. The facility will have the capacity to produce five lakh units annually.
Moreover, it is also looking for partners in the US, Germany, Japan and the UK to export the cycles under a contract manufacturing deal. The company, at present, exports a small quantity to Spain, African region and Poland.