[sustran] Boom Time for Indian Bike Industry

Todd Edelman, Green Idea Factory edelman at greenidea.eu
Wed Nov 19 21:35:56 JST 2008


      Boom Time for Indian Bike Industry

<http://www.bike-eu.com/news/3110/boom-time-for-indian-bike-industry.html>

NEW DELHI, India -- It's boom time in India's bike industry. Not only 
because of the Indian rupee dropping to an all-time low level against 
the US dollar which will attract more sourcing, but also because of the 
government ordering 1.5 million bikes to be handed out to school-going 
children.

The country's government has emerged as the biggest consumer of bicycles 
manufactured in the country. India has more than two dozen states, most 
of which are inviting annual tenders for the supply of bicycles, mainly 
from the big four makers: Hero Cycles, TI Cycles, Avon Cycles and Atlas 
Cycles.


        Capacities fully utilized

These tenders have revitalized the whole industry: even second tier 
suppliers and smaller vendors supplying the big four are flush with 
orders. These orders have also helped manufacturers to utilize their 
installed capacity. "The capacities have been utilized fully from the 
time the government have started procuring bicycles from bicycle 
manufacturers," said Mr Gautam Kapur, Managing Director, Atlas Cycles 
(Sahibabad) Ltd. Atlas is among the major beneficiaries of the bicycles 
ordered by various state governments.

It's estimated that over 1.5 million bicycles are being ordered by state 
governments to fulfil their annual commitments under the various 
schemes. "Of late, the government has surfaced as a large buyer in 
India. Various state governments have started Child Education 
Development Schemes, whereby the cycles are distributed to school-going 
children.

About 1.4 million bicycles were purchased by various governments last 
year. Hero Cycles Ltd. has supplied 600,000 units in the last fiscal 
year, and it has already supplied 160,000 this year with another order 
of 200,000 units yet to finalized.


        Child Education Development Schemes

The schemes are being funded by international agencies. "Aid comes from 
the World Bank which supports schemes like promoting education among the 
female children. If a girl travels to 10 miles to school, the child 
becomes entitled to a bicycle under the Child Education Development 
Schemes," said Gautam Kapur. 

Ludhiana based Avon Cycles has already supplied 200,000 units and 
another 200,000 are expected to be delivered. "Bicycles are being 
procured in sizes of 50 cms (20") and 55 cms (22") under the Sarva 
Shikha Ahiyan (Education Scheme)," stated Mr Onkar Singh, Managing 
Director, Avon Cycles Ltd.

Chennai-based TI Cycles is likely to supply 280,000 units this fiscal 
year. It has already supplied about 1.2 million bicycles. "We are 
expecting further orders of 150,000 bicycles from Karnataka," said Nambier.

Atlas is supplying around 50,000 bicycles each to the states of Tamil 
Nadu & Jharkhand annually. Tamil Nadu procured 130,000 units from Atlas 
this year and Bihar has ordered 200,000 bicycles. "We have supplied 
bicycles to our dealers in Bihar and Senior Secondary school students 
get vouchers from the state governments to buy bicycles from 
dealerships," said Gautam Kapur of Atlas Cycles.

Originally, the scheme was confined to girl students only, but it has 
now been extended to boys as well. There is another order to the tune of 
150,000 units from Andhra Pradesh. Even smaller bicycle manufacturers 
like Arpan Cycles are also among the beneficiaries of bicycle tenders. 
Indian component manufacturers are also benefiting from the governments 
tenders.

-- 
--------------------------------------------

Todd Edelman
Green Idea Factory

Urbanstr. 45
D-10967 Berlin
Germany

Skype: toddedelman
Mobile: ++49 0162 814 4081
Home/Office: ++49 030 7554 0001

edelman at greenidea.eu
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