Punjab government is committed for promoting industry
Punjab Industries Minister Sunder Sham Arora today inaugurated new plant of Hero Motors Company at Hi-Tech Cycle Valley, village Dhanansu, near here. Earlier, the cabinet minister also inaugurated the 8.5 km long and 100 feet wide approach road (connecting Chandigarh Road to cycle valley), that has been constructed by PSIEC with a cost of Rs 66 crore.
He was also accompanied by Hero Motors Company CMD Pankaj Munjal, PSIEC Chairman Gurpreet Singh Bassi, PMIDB Chairman Amarjit Singh Tikka, Punjab Youth Development Board chairman Sukhwinder Singh Bindra, Senior Congress leader Satwinder Kaur Bitti, SDM Dr Baljinder Singh Dhillon, besides several others.
While speaking on the occasion, Pankaj Munjal informed that the Cycle Valley is a critical element in establishing HMC's global engineering & 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 (HMC) ambition to make India a global manufacturing hub of premium bicycles and E Cycles
He said that the factory will help HMC augment is production capacity to 10 million units annually, with a production of 4 million premium bicycles & E Cycles, majorly for global consumption. Along with the new plant, Hero E Cycle Valley will also house a series of international component suppliers to achieve complete localisation of manufacturing in India
Cabinet Minister Sunder Sham Arora said that this new hi-end export-oriented manufacturing plant at the ambitious Cycle Valley, will help in the generation of thousands of jobs and marks a major leap for the 'Make in India' initiative. He said that the opening of the new plant by HMC marks the first phase of operationalization of the Cycle Valley.
Spread across a sprawling 100 acres, the 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.
He said that the Capt Amarinder Singh led Punjab government is committed for promoting industry in the state and that is why, several big companies 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 cycle valley Dhanansu. He said that it would not only boost economy of the state but would also generate employment for thousands of Punjabi youth.
While 50 acres of the Valley houses the Hero E Cycles Factory, another 50 acres has been marked for a dedicated Suppliers Park. With HMC's global design, engineering and R&D facilities centred in Europe (Germany and UK), Hero E Cycle Valley has been envisaged as the manufacturing hub to meet the rising demand for global exports.
Pankaj Munjal said that over Rs, 1,000 crore is being undertaken over two years in total outlay to operationalise the E Cycle Valley and grow Hero International in EU & UK. While HMC is spending Rs 350 crore in operationalising the E Cycle Valley, the vendors are bringing in an estimated Rs 400 crore. Additionally, HMC plans to further invest Rs. 300 Crore over the next couple of years to fortify its brands, R&D and distribution across EU & UK. which becomes a pivot for its global ambitions.
He said that HMC is 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 localization and innovation center, the ecosystem is expected to upgrade HMC's manufacturing capability to make bicycles priced at USD 150-500, and e-bikes USD 1000 to 5000 against USD 60 today. The best in class ecosystem and a 'Make in India' hub will enable India to become a global hub of manufacturing international quality bicycles, E Bikes and Auto components.