New Delhi, Feb 21: Hero Cycles said it has forayed into the premium bicycle market by launching a new product -- Red Dot -- priced at Rs 43,000.
The world's largest bicycle maker has introduced a new brand -- Urban Trail -- under which it will roll out all the luxury bicycles.
"With the changing dynamics of social-economic scenario in India, the future clearly lies in the premium and luxury segment. With the launch of Urban Trail, we want to achieve the leadership position in premium and luxury segments," Hero Cycles Co-Chairman and MD Pankaj Munjal said in a statement.
Red Dot is made of carbon fibre and weighs approximately 12.9 kg.
The company said carbon Faber is the same material which is used in F1 race cars and aircrafts, making the frame very strong, rust free and yet very light.
"We see emergence of a completely new market segment in India and are excited to see the changing trend in cycle industry. We are prepared to surpass the expectation of our customers with the true Hero DNA," Hero Cycles President (Urban Trail) Pravin V Patil said.
The company received encouraging response for the new brand during its pilot launch in some markets, he added.
Hero Cycles is setting up a dedicated unit for Rs 50 crore to roll out the premium cycles at Ludhiana.
The facility will have a capacity to produce five lakh units annually.
The existing plant rolls out 19,000 units every day.
It is also scouting for partners in the US, Germany, Japan and the UK to export the cycles under a contract manufacturing deal.
The company at present exports a small quantity to Spain, African region and Poland.
Hero Cycles is aiming at pushing up its revenue to over Rs 2,000 crore in 2011-12 from Rs 1,650 crore in last fiscal.
Munjal had said the company tied up with a foreign player for the cycles, but declined to disclose the identity of the overseas partner.