Hero Cycles, the famous brand which exports cycles to more than 70 countries and a major player in the Indian market has decided to snap business ties with China amid the ongoing push to throw Chinese companies out of Indian market.
“In the coming 3 months, we had to do business worth Rs 900 crore with China, but we have cancelled all those plans. This is our commitment to boycott Chinese products,” said Pankaj Munjal, Chairman-cum-Managing Director of Hero Cycles.
He has come forward to offer technical help to small cycle manufacturers, whose business has been destroyed due to lockdown, to build high-tech products which can be exported to European and American markets. The price of high-end bicycles ranges from 15,000 rupees to 7 lakh, and the small manufacturers can make hefty money if they learn technical expertise to manufacture these.
So far, high-end cycles and their parts were being imported from China. “This is the reason that we have come forward to help them and hence are ready to provide them technical help so that they can start making high-end bicycle parts which are being imported from China,” said Munjal.
Now, Hero Cycles is planning to stop all imports from China and is planning to manufacture them at the company’s plant. Munjal said that the company is looking forward to set-up manufacturing unit in Germany to cater to the needs of the European market, which is the largest market for high-end bicycles.
Moreover, Hero Group and Punjab government are cooperating in the set-up of cycle valley in Ludhiana in 100 acres of land and 400 crore rupees investment. Munjal said that manufacturing of every type of bicycle is possible in India. “Once Cycle Valley at Dhanansu village of Ludhiana comes up, we can easily compete with China. If India can make the latest computers, why can’t we make hi-tech bicycles,” he said.
In the last few weeks, especially after the bloody fight between PLA and Indian Army in the Galwan valley on 15th June, many Indian companies have boycotted Chinese imports. The government supported the people’s movement against Chinese goods with an increase in import duty and tighter inspection of goods at ports.
For India, China is the largest import partner for the last many years, with goods above 50 billion dollars being imported every fiscal year. On the other hand, China does not give market access to Indian pharmaceutical and Information technology companies.
“China is a state enterprise-driven economy and most imports continue to be ordered by state companies. Issues of market access, primarily in agri commodities and pharma products, persist. These have to be addressed first,” said Ajay Sahai, Director-General, Federation of Indian Export Organisations.
The import restrictions are expected to hit imports worth around 30 billion dollars and India would drastically reduce its trade deficit with New Delhi if severe import restrictions are placed. India exports goods worth only 15 billion dollars every year and the government plans to import not more than that.
With private companies like Hero, Reliance (does not uses a single Chinese component in Jio) boycotting China, Make in India would get a boost automatically. China’s economic might, which is the reason behind its arrogance, is likely to be weakened very soon.
