India’s powerful Murugappa Group enters Sri Lanka’s bicycle sector
View(s):TI Cycles of India, one of the leading bicycle manufacturers in India and part of the Murugappa Group, has signed an agreement to acquire a controlling stake in Sri Lankan bicycle maker Creative Cycles (Pvt) Ltd and Great Cycles (Pvt) Ltd.
This acquisition, when concluded, will help strengthen and expand the global supply chain for the premium cycles’ portfolio of TI Cycles, the Indian company said in a media announcement.
Creative Cycles and Great Cycles have manufacturing facilities in the Katunayake Export Processing Zone, Colombo with a capacity to produce a wide range of bicycles, from kids to performance cycles, from steel to alloy bikes.
“TI Cycles is a leader in the premium cycles’ segment, bringing the best of cycling experience to the Indian consumer,” said L. Ramkumar, Managing Director, Tube Investments India Ltd (of which TI Cycles of India is a Division). “With this acquisition, we will be able to grow the market for premium cycles and our market share in the premium segment even more aggressively. Our goal has always been to offer the finest products and experience to Indian consumers and this is one more step in that direction.”
“I am excited to be associated with TI Cycles and the Murugappa group,” says Shuyuan Gan, Founder & Director of Creative Cycles & Great Cycles. “We’re looking forward to working closely with TI Cycles as an integral part of their global supply chain.”
Subject to approvals from the respective authorities and successful completion of all formalities, the acquisition is expected to close by the end of this financial year.