Financial crisis: Atlas could acquire Cycles. Hero Cycles of the Munjal family has shown interest in purchasing Atlas Cycles. Pankaj Munjal, chairman of the country's largest bicycle company Hero Cycles, has started talks with the promoters of Atlas Cycles. Hero Cycles has a 43 percent share in the Indian bicycle market.
Munjal said that Hero is buying brands worldwide. Hero Zero is a net-debt company with a cash reserve of over Rs 1,000 crore. If someone wants to sell their brand, we are ready for that. We need to buy brands. As for Atlas, he said, we have an eye on him. But so far no concrete progress has been made in this regard. Atlas began to incur losses in 2014. On June 3, the company closed the Sahibabad factory. Incidentally, that day was World Bicycle Day. The plant started in 1989 and was the company's last operation plant. It had the capacity to make more than 2 lakh bicycles every month.
Munjal said that despite the difficult economic situation, the company is doing well in the domestic market. In states like Bihar and Odisha, the demand for bicycles is increasing with the return of migrant laborers. Apart from this, there is a great demand for bicycles related to children and lifestyle. The company has a global production capacity of 6 million bicycles, of which around 5 million have a capacity in India. By the first quarter of next year, the company wants to reach 1 crore and an investment of Rs 400 crore is being made for it.
Munjal hopes that the company's business will grow worldwide as there is an atmosphere of anger against Chinese companies due to coronavirus infection. He said people all over the world want to avoid Chinese-made goods. They want a second manufacturing source and hub. The hero fits into this and that is why we are expanding ourselves.
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