Hero Cycles to hike stake in Sri Lankan bicycle plant

With zero customs duty on exports to India and Europe from Sri Lanka, Hero Cycles is planning to increase its stake in its Colombo-based bicycle unit this quarter. Hero Cycles, the world’s largest bicycle manufacturer by volume, currently owns 60% stake in the Lankan entity BHS Ventures.

Hero Cycles Chairman and Managing Director Pankaj Munjal said: “This plant is strategically located to cater to the European and Indian markets and plant acquisition is one of the many steps to expand Hero’s presence globally.

“While exporting to Europe from India invites a custom duty of 12-14%, Sri Lanka has a special status for exporting to India and Europe at zero duty.”

BSH Ventures is an export-oriented firm located in the Biyagama Export Zone of the island nation.  (Source Indian Express).