[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
www.greenidea.eu
www.flickr.com/photos/edelman
Green Idea Factory is a member of World Carfree Network
www.worldcarfree.net
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