How Hero Cycles Took Over India 🤔

Hey there,

67 years ago, the Munjal brothers started making cycles in Ludhiana to enable affordable transportation across India.

Today, they are India's LARGEST cycle makers with a 43% share 🔝

From "desi" bikes to e-bikes, here's how Hero Cycles pedaled ahead of the competition 👇

Before anything, here are some quick numbers about Hero:

- 900+ products
- 43% market share in India
- 7.5 Million Cycles manufacturing capacity annually
- Guinness world record holder for making 18,500 cycles in a day

That’s Hero Cycles for you.

This story started with the Munjal brothers in 1956, a time when the nation heavily relied on imports for (almost) everything.

The Munjals established their base in Ludhiana, coincidentally becoming a hub for engineering (motors, pumps, parts, etc).

During this period, there was a growing need for affordable transportation, and bicycles emerged as the ideal solution. The demand for cycles surged, and the Munjals capitalized on this opportunity.

Here's how they did it:

1/ The "Ye bhi kar lenge" Attitude:

In the early days, the Munjals didn't have manufacturing manuals or established processes. They worked closely with artisans, sketching cycle parts on paper and discussing production methods.

This collaborative, hands-on approach helped them grow within constraints and made their products of high quality.

2/ Building truly rugged 'desi' cycles suiting Indian conditions:

The goal was to build a perfect vehicle for milkmen, farmers, and families to travel reliably. So, they put utility over aesthetics.

Durability was key, as these cycles were meant to last for generations with simple maintenance and readily available spare parts.

3/ Acquiring international brands while retaining domestic leadership

After three decades, Hero Cycles became the leader of the cycle manufacturers in India. Now was the time to expand globally.

They acquired Firefox in India to cater to premium customers, Avocet Sports to serve the European market, BSH Ventures for Sri Lanka, and HNF Nicolai again in Europe.

These acquisitions helped them diversify and strengthen their global presence.

4/ Democratizing cycling across masses to niches:

Hero Cycles evolved from being just a durable brand for the masses. They introduced ranges like Hero Lectro, Miss India, Sprint, and Octane, catering to different segments and needs.

5/ Embracing Change:

Recognizing the global shift towards electric vehicles, Hero Cycles launched Lectro.

This range focused on electric engines while maintaining the essence of traditional cycling.

Hero Cycles' story is a blend of innovation, adaptability, and strategic growth. They started from scratch, ensuring the highest quality, adapted to changing market demands, and expanded strategically.

Their journey offers valuable lessons for modern startups: the importance of a strong foundation, the need to evolve with the times, and the power of thoughtful expansion.

✍️ Jargon of the day

Acquisition - An acquisition allows an acquiring company like Flipkart to take possession of the other target company's assets, people, technology, brands, profits, etc.

Myntra continues to exist but under its new owner Flipkart's umbrella instead of independently.

Loved this edition? Or have some thoughts to share? We'd love to hear from you

Cheers,
Hrishikesh