Bicycle May, 15 2015

Cycling biz to strengthen profits

By Sandeep Rana, TFW Bureau
Cycling biz to strengthen profits

After China, India is the second largest bicycle manufacturer and the third largest exporter of bicycles in the world. Looking at the tremendous growth of bicycle industry, India’s TOBU Cycles Group is all set to establish its base within the Indian market. In an interview, Rajnish Goenka, Chairman, TOBU Cycles Group, shares his views about the Indian bicycle market and his expansion plans.

Tell us about your brand.

TOBU is India's one of the leading players in the field of children bicycles, tricycles, baby walkers and prams. We launched the brand TOBU way back in 1967. To cope up with ever-increasing demand of bicycles and providing quick deliveries, we had also set up a unit at Okhala Industrial Area in New Delhi, apart from setting up facilities at Ludhiana.  We have tied up with TV channel, Cartoon Network for co-branding with its famous characters like BEN-10 and to have its designing, publicity and marketing support. We also have signed deals with big retail chains like Big Bazaar/Pantaloon, Walmart, Spencers’, Aditya Birla, Vishal Megamart for retailing our products’ range at their retail stores pan India.

What is the present state of the Indian bicycle industry?

The Indian bicycle industry was largely affected by the Chinese bicycle market as it offered low quality and reasonably priced cycles. Other major factor which went against the industry was the expensive cycle imports made by the government. But, now things are gradually coming back on the track as inflation is coming down and people realising that the Indian cycles are stronger and durable than the Chinese ones.

Anything you learnt from your Chinese counterparts?

Yes, during this period we learnt about providing bicycles along with accessories as it helped in catching customers’ attention.

What opportunities are there for franchisees?  

We at TOBU Cycles, offer two types of business opportunity to investors who are interested in taking brand’s franchise. Besides retail franchise model, franchisees can explore opportunity in manufacturing unit as well. We also train our franchisees in all aspects and help them in manufacturing cycles.

What are you expansion plans?

Currently, we have six stores. Going ahead, we will be opening 30 to 35 retail outlets in the next one year.

Franchise facts:

Area

Investment

RoI

Breakeven

Total outlets

Expansion plans

Minimum 200 sq ft (retail store)

Starts from 7.5 lakh

1 year

5 -7 %

6

30-35 in next one year

Related: How to achieve a sustainable cycle of business growth

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