Top-end bicycles will be introduced in India by Hero.
The world's largest bicycle maker by volume, Hero Cycles, has acquired a 60% stake in Mitteldeutsche Fahrradwerke AG (MIFA), Germany's largest bicycle maker, via OPM Global.
The buyout is Hero Cycle's first overseas purchase and is considered to be a part of the company's plans to become a global player. PTI reports that the Indian bicycle maker has invested 19 million euros (around IRN 152 crores) in MIFA via its subsidiary OPM Global. A part of this investment would meet the working capital requirements.
The global bicycle market is pegged at USD 49 billion and the acquisition would help Hero gain access to top-end technologies. The synergies involving technology and cost leadership would help the company emerge as one of the largest bicycle makers in the world in terms of both volume and value.
Hero Cycles Co-Chairman and Managing Director Mr. Pankaj Munjal said that, not only would Hero Cycles provide a manufacturing base to MIFA, but will also introduce high quality bikes in the Indian market using MIFA’s German engineering expertise.
The takeover would result in combined long term R&D operations especially in areas of electric bikes and motors.