Hero Cycles Acquires Firefox Bikes
Published On Sep 19, 2015 12:00 AM By Bhupendra Singh Shekhawat
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Hero Cycles has acquired Delhi-based Firefox Bikes on Thursday for an undisclosed amount and has enlarged its territory in Indian premium cycle market. Hero Cycles which is the world’s largest bicycle manufacturer by volume has stated that the deal includes the exclusive distribution rights for the cycles, accessories along with spares of Firefox brand.
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Though we do not have the official confirmation regarding amount exchanged some reports claimed that Hero cycles paid Rs 150 crore to the Firefox, in this all-cash deal. Besides the acquisition, the company also announced of a ‘Hero Innovation Center’ to enhance its line of cycles.
Pankaj Munjal MD and Chairman of Hero cycles stated “Through this acquisition, Hero Cycles will further expand its presence in all major categories of bicycles in India through its various brands such as Hero Cycles, UT, Firefox and UT Edge,”
"This acquisition will help Firefox to penetrate further into the Indian market while it will help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our customers." Shiv Inder Singh, Founder and MD of Firefox bike’s said in a statement.
As per the manufacturer, the growth of the premium bicycles in India is persistently increasing with an annual rate of 25 percent from the last few years and around 2 lac premium bicycles are being sold per year.
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