HMC Group Set to cross ₹1000 Cr. international revenue by FY22
New Delhi, 23rd November 2020: Riding on a strong global demand wave for bicycles, E-bikes and automotive components, leading bicycle and component manufacturer HMC Group is set to cross Rs. 1000 crore in international revenue by FY FY22. The Group has set a target for further trebling this figure by FY 24, banking on high growth in the European and American markets.
The Hero Motors Company includes under its umbrella leading bicycle brands Hero Cycles, Avocet Sports, Firefox, Spur and automotive component manufacturer Hero Motors. The current upward trajectory has been driven by robust growth in European Union, UK and USA where the COVID 19 pandemic has led to a surge in demand for bicycles, E Cycles as well as a wide variety of automotive components.
The Group’s international revenue includes the sales from HMC’s globally acquired brands as well as the export of automotive components manufactured in India.
The Group has undertaken a major expansion and vertical integration drive over the past five years through a series of strategic acquisitions in the UK and Europe. The strategy has not only given it access to international markets but also enabled it to develop indigenous manufacturing capability in India and boost its global earnings. Notably, the Group’s Indian manufacturing capacity is set to receive a major boost with the opening of the new International Cycle Valley plant in Punjab. Hero Cycles is set to add a capacity of 4 million units per annum to the current 6 million units through the Cycle Valley project. The additional capacity will further help the organization fulfil the growing global demand for bicycles, e-bikes and automotive components.
“HMC’s vertical integration strategy wherein it has created international outposts for Sales, Marketing and R&D over the past few years through strategic acquisitions such as Insync Bikes in the UK and HNF GmbH in Germany is now bearing fruits. Simultaneously we have built up additional capacities, and capabilities to manufacture global quality bicycles and e-bikes in India. The international back-end is now being integrated with Indian factories to shift this manufacturing to India which was traditionally outsourced to China, Taiwan, Cambodia, Eastern Europe etc. Banking on this futuristic strategy and a global surge in demand, we are expected to cross Rs 1,000 crore in international revenue by FY 2022,” said Mr Pankaj M Munjal, Chairman and Managing Director, HMC, a Hero Motors Company.
On the automotive front as well, the company has witnessed steady growth, with its components manufacturing also contributing significantly to its international business. The group’s Gears, Transmission and Bike Drive train business has steadily built itself by adding key automotive OEMs as its customers. The Group has a robust projects RFQ pipeline of over USD 1 billion spread over the next 8 years.
Going forward, the HMC Group is looking at further augmenting its R&D and Business Development activities in European Union in addition to its existing Joint Venture with Hewland Engineering, which is a transmission and hybrid drives supplier to formula racing and high-end cars.
“Having gained a strong international footprint and having integrated it with our manufacturing units in India, we have now set sights on a 3-year roadmap of trebling our international revenue by FY24. We are highly positive about the next round of high growth that is expected from the European, British and American markets,” added Mr. Munjal.