India’s Hero Cycles is reportedly showing no intention of slowing its growth ambitions, telling ForbesIndia that the business has plans to close “three more acquisitions before 2016’s close”.
Speaking to the title, chairman Pankaj Munjal said the world’s largest by volume bicycle maker will “surprise” the industry with its aggressive growth plans. In Q1 of the 2016 financial year, Hero shifted some 1.2 million units.
In the past few years Hero has acquired a majority stake in UK-Based Avocet Sports, signalling its entry into Europe, as well as acquiring 60% of Sri-Lanka’s BSH Ventures and acquiring Firefox Bikes.
Further bolstering its position as a market leader, the firm is said to be looking closely at alternate urban mobility solutions, with plans for a new vehicle due to be revealed this year.
Within the in depth interview, Munjal gave some context for his vision, outlining that by 2019 Hero expects to have tripled its revenues from an already enormous Rs 2,591 crore. Suggesting that this is not an unrealistic aspiration, Munjal points to the past quarter’s growth, in which the business has grown 23% on its substantial base. Meanwhile the domestic market is said to have achieved only a 7% growth.
Sticking with domestic ambitions, Munjal believes that rural India is a hugely untapped market.
He told ForbesIndia: “There are 400 million people who cannot afford a bicycle (in the country). But last year, we sold 1 Lahk bicycles and we expect one million of these this year. The growth rate from zero to 1 Lahk is huge, but it’s even steeper from 1 Lahk to 1 million.”
On the company’s position on the global stage, Munjal suggests that he wants 5% of the $50 billion global market share.
Read the interview in full here.