India’s largest manufacturer Hero Cycles has acquired a 60% stake in Sri Lankan manufacturer BSH Ventures.
The latest in a string of three acquisitions, which includes the takeover of the UK’s Avocet Sports and Firefox Bikes, BSH was bought for an undisclosed sum. Avocet marked Hero’s first overseas acquisition and this majority stake will result in a “doubling” of exports to Avocet in the UK.
“The acquisition comes in line with the company’s aggressive intent to strengthen its global presence and to spruce up its manufacturing proficiency to feed a rapidly rising global demand,” read a statement.
“This is a major strategic acquisition for us as we work to expand our presence globally both in terms of sales as well as presence.”
Sri Lanka is on the verge of regaining its duty free status for bicycles imported into the EU, offering savings of 14%, a big plus point for shipments to Avocet.
Hero will now ramp up investment in plant capacity, suggesting it aims for half a million units per year to satisfy global demand. The production line’s focus will be on more premium lines.
Hero currently has capacity for 7.5 million bicycles annually.