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New Hero Motors plant inaugurated at Ludhiana’s Hi-Tech Cycle Valley
Punjab industries minister Sunder Sham Arora inaugurated the plant, along with the 8.5 km and 100 feet wide approach road, connecting Chandigarh Road to the cycle valley
Punjab industries minister Sunder Sham Arora on Tuesday inaugurated a new plant of Hero Motors Company at Hi-Tech Cycle Valley in Dhanansu village here. Earlier, the cabinet minister also unveiled the 8.5 km and 100 feet wide approach road — connecting Chandigarh Road to the cycle valley — constructed at a cost of ₹66 crore.
He was accompanied by Hero Motors Company CMD Pankaj Munjal, Punjab Small and Export Corporation chairman Gurpreet Singh Bassi, Punjab Medium Industrial Development Board chairman Amarjit Singh Tikka and others.
Arora said that the new hi-end export-oriented manufacturing plant at the cycle valley will help generate thousands of jobs, while marking a major leap for the Make in India initiative. He said that the opening of the new plant by Hero Motors marks the first phase of operationalisation of the cycle valley.
While speaking on the occasion, Pankaj Munjal informed that the cycle valley is a critical element in establishing Hero Motors’ global engineering and manufacturing chain with R&D facilities centred in Europe and manufacturing in India.
He said that Hero E Cycles Ltd factory is a major component of Hero Motors Company’s ambition to make India a global manufacturing hub of premium bicycles and e-cycles.
He added that the factory will help Hero Motors augment its manufacture capacity to 10 million units annually, with a production of four million premium bicycles and e-cycles, majorly for global consumption. Along with the new plant, the cycle valley will also house a series of international component suppliers to achieve complete localisation of manufacturing in India.
Spread across a sprawling 380 acres of land, the cycle valley is expected to employ over 9,000 people when fully operational. The park is establishing a complete ecosystem for international component suppliers to localise production and help India eliminate its dependence on premium component imports.
Munjal said talks are on with several foreign companies for joint ventures as a number of major players have decided to set up their mega units here. He said that very soon, many other companies would also be setting up their units in Dhanansu. It would not only boost the economy of the state but also generate employment for thousands of Punjabi youths, he added.
While 50 acres of the valley houses the e-cycles factory, another 50 acres has been marked for a dedicated suppliers’ park. Munjal said that over ₹1,000 crore is being undertaken over two years in total to operationalise the e-cycle valley and grow Hero International in the EU and UK.
While Hero Motors is spending ₹350 crore in operationalising the valley, the vendors are bringing in an estimated ₹400 crore. Additionally, it plans to further invest ₹300 crore over the next couple of years to fortify its brands, R&D and distribution across the EU and UK.
Munjal said that the firm was already in advanced talks to finalise a joint venture with an international player for electric motor localization and another JV for manufacturing international quality alloy frames, suspension and CVT in India. Premium bicycle parts maker Spur Technologies, a subsidiary of Hero Motors Company, has already set up a manufacturing unit at the valley.
With hi-end component localisation and innovation centre, the ecosystem is expected to upgrade Hero Motors’ manufacturing capability to make bicycles priced at USD 150-500, and e-bikes for USD 1000 to 5000 against USD 60 today. The best-in-class ecosystem and a Make in India hub will enable the country to become a global manufacturer of quality bicycles, e-bikes and auto components.
