Financial Daily from THE HINDU group of publications
Tuesday, Dec 17, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 17, 2002 |
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Corporate
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New Projects TI Cycles to set up plant at Noida Neha Kaushik
NEW DELHI, Dec. 16 IN a bid to tap markets located in the eastern part of the country, TI Cycles of India, a unit of Tube Investments of the Murugappa group, plans to set up a plant in Noida. According to Mr Adiraj Sarin, Managing Director, TI Cycles, "the investment for the plant will be in the region of about Rs 15-20 crore". Mr G. Hari, President, TI Cycles, said, "The investment will be done in two phases. Initially, the plant will have a capacity of producing 60,000 units per month. The production at the plant is expected to begin in about six months time". All the components of the bicycles will be sourced from Ludhiana. TI cycles had recently begun production at its Nashik plant, which is now a hub for the western and northern markets, while its plant at Chennai (Ambattur) is a hub for the South. The company has already invested about Rs 10 crore towards setting up the Nashik plant. This `hub' strategy will help the company increase its presence and sales in markets beyond the South, which accounts for a major proportion of sales. Currently, the company's total annual capacity is about 40 lakh units. Further, to improve its market share, TI Cycles, which manufacturers the BSA and Hercules brands of cycles, would also launch a major marketing initiative. Mr Sarin said, "We are planning a huge campaign, which will be out in about six months time, to create awareness for our brands. The marketing initiative will be only for the urban areas". With the bicycle industry seeing a decline in sales this year, the All India Cycle Manufacturers' Association (AICMA) has plans to come out with a campaign next year highlighting the benefits of cycling. The campaign is intended to help increase the sales in urban areas, where the product is rapidly declining in the consumers' list of priority items.
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