<div>Hero Cycles on Thursday (17 September) said it has bought Delhi-based Firefox Bikes for an undisclosed sum in an all-cash deal to expand its presence in the country's premium cycle market.</div><div> </div><div>Hero Cycles, which calls itself the world's largest bicycle maker by volume, said in a statement that the deal includes Firefox Bikes' brands, accessories and spares along with exclusive distribution rights.</div><div> </div><div>However, Firefox Bikes will be a distinct brand and continue as a separate business entity post-acquisition, Hero Cycles, part of the Hero Motors group of companies, said.</div><div> </div><div>The acquisition will see transfer of key technology, and rich global experience garnered by Hero Cycles over the last 60 years to Firefox Bikes which is often credited for creating the premium range in the Indian cycling market. Firefox, which has an established presence pan-India through a network of 160 outlets, has been growing at a 3-year CAGR of 35 per cent in revenue.</div><div> </div><div>Speaking about the acquisition Pankaj Munjal, Chairman and MD, Hero Cycles said, “This acquisition is one of the most significant developments in the history of Hero Cycles. We are extremely proud to have Firefox Bikes, which is one of the most recognised brands in the premium cycle segment, as part of the Hero Cycles family. It is a delightful moment for us looking at the immense possibilities that lie in front of both these brands which have distinct branding identities. We are confident that our customers and even dealers would appreciate the infusion of Hero’s hard-earned trust, credibility and world-class manufacturing prowess into a young and vibrant brand such as Firefox.”</div><div> </div><div>“Post the acquisition, Firefox will continue to remain a young and dynamic brand with an international appeal. We at Hero Cycles have invested in Firefox only to help it realise its true potential and further its growth potential in the market. 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. The aim is to provide our customers with world-class products at every price range as per their fast evolving tastes and requirements,” added Munjal.</div><div> </div><div>Shiv Inder Singh, founder and managing director at Firefox Bikes, said, “We at Firefox were fortunate to have entered the cycling market at a time when Indian consumer had just started to expect more from their cycles. It was enriching and an exciting role to play where we not just created the premium cycle segment in India, but also introduced the next generation of performance and recreational cycles to the Indian consumer. We are very happy today that our effort into creating this segment has been recognised by market leader Hero Cycles and have now decided to take our young and an extremely vibrant brand to the next level.”</div><div> </div><div>“This acquisition will help Firefox to penetrate further into the Indian market. This deal will also help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our prospective customers. Hero has committed in investing in expanding and upgrading our product range which will hit the markets soon. The acquisition will also translate into uplifting the customer experience at our stores through training of our existing distributor network by Hero Cycles” added Singh.</div><div> </div><div>As part of the deal, Singh will continue to lead Firefox Bikes post the acquisition as the Chief Executive Officer.</div><div> </div><div>Hero Cycles also announced its decision to setup a ‘Hero Innovation Centre’ in India aiming to build world’s most hi-tech R&D centre for engineering, innovation and designing of next generation of world-class cycles for India and for international markets. This innovation will cater to technology and designing requirements of both Hero Cycles and Firefox Bikes. </div><div> </div><div>The financial transaction from Hero Cycles was led by company’s Chief Finance Officer Rohit Maheshwari. BMR Advisors and BMR Legal acted as the transaction partners and legal advisors respectively for Hero Cycles for this deal. While, consulting firm Deloitte represented Firefox Bikes as their transaction partners.</div><div> </div><div>Bicycle manufacturers are increasingly betting on India's young and affluent urbanites to help establish a leisure riding culture. </div><div> </div><div>The premium cycle segment in India, which started with humble origins in early 2000s, has been growing at 25 per cent CAGR over the past many years in India. This segment has today emerged as one of the fastest growing segments in the market by clocking more than 2 lakh units a year.</div><div> </div><div>India is the world's largest motorcycle market after China, but the roads are packed with cheaper models.</div><div> </div>
