World's largest bicycle manufacturer, Hero Cycles, on Monday ventured into premium bicycle market with the launch of its most expensive bicycle yet, the Rs 43,000 Red Dot.
The firm that produces more than 4.8 million bicycles every year, also launched a new brand, Urban Trail, under which all its luxury products including the Red Dot would be sold. Hero would launch several other luxury products with a top end price tag of Rs 3.5 lakh, in future.
"With the changing dynamics of social-economic scenario in India, the future clearly lies in the premium and luxury segment," said Pankaj Munjal, co chairman and managing director, Hero Cycles. "With the launch of Urban Trail, we want to achieve leadership position in this segment."
Red Dot is made of the ultra light carbon fibre that is also widely used in Formula One racing cars and aircrafts. It weighs approximately 12.9 kg and is the most affordable carbon bike in India.
"Demand for hi-end cycles is surging in India and we have received encouraging response during our pilot launch in some markets," said Pravin V Patil, president Urban Trail, Hero Cycles. "We see emergence of a completely new market segment in India and are excited to see the changing trend in cycle industry in India and are prepared to surpass the expectation of our customers with the true Hero DNA."
The company is aiming at pushing up its revenue to over Rs 2,000 crore in 2011-12 from Rs 1,650 crore in last fiscal. It is also setting up a dedicated unit for Rs 50 crore to roll out the premium cycles at Ludhiana. The facility will have a capacity to produce 5 lakh units annually. Hero's existing plant rolls out 19,000 cycles every day.