By P.K.Balachandran

With an eye on the vast European market, India’s largest bicycle manufacturer Hero Cycles has bought a 60 percent stake in BSH Ventures Pvt Ltd., Sri Lanka’s largest bicycle maker with license to make Raleigh cycles.

Confirming this, BSH Ventures’ Chairman Jeyam Perumal told Express on Wednesday that the Chairman of Hero Cycles Pankaj Munjal will be here on April 1 to sign the deal.

“It’s win-win deal as we are entering into a partnership with a big company like Hero; BSH keeps 40 percent; and I continue as chairman under the new set up,” Perumal said.

With a production of 5.5 million units per year, Hero is the largest bicycle maker in the world and has 40 percent share of the Indian market.

When Hero pumps in US$ 15 million to expand the Lankan plant to serve the European market, 500,000 units will be produced every year. The Lankan facility’s present capacity is 250,000.

“Our factory at Biyagama is already one of the best in South East Asia,” Perumal said.

Europe is expected to be opened to more Lankan products as the General System of Preference Plus set of concessions are likely to be re-extended to Lanka following the establishment of democracy and human rights with the Presidential election of January 2015. Lanka is lobbying hard for this restoration and the EU is willing to consider its plea.

Courtesy:New Indian Express