The Indian Bicycle manufacturer has recently announced that they have invested around 160 Crores in German bicycle manufacturing Giant MIFA (Mitteldeutsche Fahrradwerke AG). This draws extra attention as this is the company's first overseas purchase.åÊ
Mr Pankaj Munjal, Managing Director of Hero Cycles states that with this purchase, Hero cycles aims to become one of the largest cycling companies in the world. He considers this a strategic buy that could lead to huge synergies in the bicycle industry.
MIFA was already in large debt at the time of acqusition as the company had spent excessively on R&D for new high end bicycles. Hero cycles not only looks at being a manufacturing base for the German company, but also to introduce high end bicycles in the Indian market. One of the key areas that the companies look at improving are the Electric bikes and motors division.åÊ