Eyeing the success of e-bikes or battery-run bikes, the Rs 8,500-crore Murugappa Group is hitting the market with a variant from its stable in the first quarter of 2008-09.
Arun Alagappan, the retail head of Murugappa Group’s TI Cycles of India, said, “the market is still nascent and holds promise for serious players.”
Battery-run bikes have been successful, with regional products prompting competition from majors like the Hero Group’s Ultra and Yo Bykes.
“With petrol prices skyrocketing, battery-run bikes have a good market in India,” Alagappan said.
The company will start manufacturing the e-bike soon at its factory in Chennai with an installed capacity of 100 bikes per day. “We would start production after we get the ARA (automobile research association) certificate,” he said.
The vehicle will come in different power ratings— 250 watts, 350 watts, 500 watts, 750 watts and 850 watts. “We are also looking at coming out with a 1,000 watt bike soon,” he said.
The company, unlike the industrial trend, draws 60% of its revenue from the speciality or fancy segment. While the Rs 2000 crore-cycle market is growing at a ‘single-digit’ rate, the company’s Kids bike has registered a growth rate of 30-35%.
“The MTB segment is growing at a little slower pace than the kids’ bikes,” he said.
TI Cycles also aims to launch sports items. “We are trying to have at least 60 indoor and outdoor sports goods in the stores,” Alagappan said.
Alagappan, here for the first BSA Go store in eastern India, said, “higher fuel prices and need for work out have brought people back to cycling. We have planned to launch 100 such stores by December next year.”
The store will retail fitness equipment and products for children as well, Alagappan.