Bicycle Industry Report

Table of Contents
Executive Summary ..................................................................................................... 2

Introduction & Product Specification ....................................................................... 3
Specification of Bicycles in Paistan ......................................................................... !
Production capacity and "a#or players ..................................................................... $
%ocations ....................................................................................................................... &
Production and Capacity 'tili(ation ......................................................................... &
Import) Export for *ive years ..................................................................................... +
,a- "aterial .%ocal/ Imported0 ............................................................................... 12
Sources of ,a- "aterial .......................................................................................... 11
Production process ..................................................................................................... 12
Problem faced by Industry ....................................................................................... 22
Tec3nolo4ical %evel .................................................................................................... 23
Pricin4 ......................................................................................................................... 2!
5overnment Policies and Incentives ......................................................................... 2!
*uture Prospects .after 6T70 .................................................................................. 2$
Biblio4rap3y ............................................................................................................... 28
2
Executive Summary
Bicycle industry in Pakistan has a significant background in the history of Pakistan.
There was no registered manufacturing business related to bicycle. It takes few years
to have a new corporation which agree to manufacture some of the parts of the bicycle
locally in Pakistan. Pakistan cycle industry ranked at the lower level if it compare
with the remaining world. Some of the neighbouring countries have more competitive
market shares in the world. There are few types of bicycles which are producing in the
Pakistan. One of them has more demand in the market and others have low market
share world wide. ll the types of the bicycles are available in many si!es. One of
them is stronger than other types" in terms of using in the rural areas also. The
production capacity of bicycle has mi#ed trend in Pakistan. It increases for some years
and then decrease and also again increases during few years. There is significant
number of ma$or players of bicycle in Pakistan but one of them has captured the
ma#imum number of market share and created a monopolistic environment in the
bicycle industry. The locations of the ma$or factories are in the approachable position
of the country. %a$or factories have large capacity of production and they are also
utili!ing their capacity in an efficient manner. The import of raw material has
fluctuating trend during last few years and e#port has low trend during the last few
years. There is lot of raw materials used in the bicycle industry. %ost of the raw
material is manufacturing locally and is being collected from the local vendors from
the same location. But the main raw material is imported from the other countries
with direct relation of the companies with the vendors in other countries. Some of the
finished parts of bicycle are also imported from different countries. The production
process which the industry is using is almost the same in all factories. The difference
is in the si!e of the production plant and capacity of plant. But the ma$or parts of the
bicycle are manufactured by the factories. The production process includes the input
of the raw material from the imported one and local one and the process is being
carried out in different large number of stages and at the last the finished items are
taken to the stores of the factory. %ost of the factories are selling their bicycles
without assembling them. The problems which are currently facing by the bicycle
industry include smuggling of imported bicycle with low prices and good look which
attracts the customers" the instability of the government in the Pakistan" the labour
unions laws" no availability of imported tool material in Pakistan and the &on
'ngineering background work force of the factories. The level of the technology
which is being used in the manufacturing of the bicycles is basically not up to date
and most of the machinery is old enough not to operate well. The prices of the
bicycles are economic level in all the types" according to their target market. The
government policies for the light engineering industry are not much familiar and most
of the time policies don(t have the incentives for the particular industry. The impact of
)TO rules on this industry will automatically improve the efficiency of the industry
and their related businesses. But there are some demerits also which will face in terms
of )TO implementation on the specific industry. *overnment is not seriously taking
this industry as the ma$or player of the economy.
+niversity of %anagement and Technology" ,ahore Pakistan
-
Introduction & Product Specification
9istory
There was no single factory which manufactured bicycles and their spare parts at the
time of independence in Pakistan. There were no industry in Pakistan and due to that
fact some of the importers of that time brought bicycle in Pakistan and passed on for
sale to retailers most of the shops were situated in ,ahore at Nila Gunbad which was
the main market of bicycles. Today Nila Gunbad market is the main market of car
tyres" Bicycle tyres and spare parts.
:rrival of Bicycle industry in Paistan
In ./02 the Shortage of foreign e#change reserves encouraged a serious look into
domestic production and a remarkable idea was conceived by the twenty two shop
owners of the Nila Gunbad area drafted a plan to establish foundation of a co1
operative society for the purpose of bicycle manufacturing factory within the country
on cooperative basis. The main reason behind the establishment of the society is to
provide mutual help and benefits to its founding members. 'lections of the society
were held promptly. The society has been functioning successfully all along is
because of the fact that its members take deep interest in its working.
%ocal & imported Spare Parts
ccording to the reports of different governmental departments only a few spare parts
of bicycles were manufactured locally at the initiation of Bicycle industry and about
/23 spare parts were import from abroad. The situation started improving with the
passage of time and today almost /43 bicycles spare parts are being manufactured in
Pakistan or through vendors. ccording to different published sources there are -22
bicycle vendors in Pakistan and employing more than -222 workers.
Paistan Bicycles industry overvie-
If we compare Pakistani bicycle industry with international bicycle industry then we
can see that we have only one ma$or manufacturer in the industry and covering the
entire local market. The international bicycle industry is much stronger than Pakistani
bicycle industry. India is the second largest manufacturer of bicycles after china.
5hina has great contribution in the manufacturing of bicycles. 5hine(s Bicycle
industry is a big threat for both Indian and Pakistani bicycle industry. )e can say that
the decline of local Pakistani industry is $ust because of imported 5hine(s Bicycles are
covering the market share.
6
Specification of Bicycles in Paistan
In Pakistan bicycles are the only cheaper means of transportation for the local public.
Bicycles are categori!ed in to fancy and standard bicycles.
7ancy Bicycles
Standard Si!e Bicycles
Standard
80%
20%
0%
20%
40%
60%
80%
Standard
Fancy
Standard bicycle is the smaller segment worldwide and is on the decline with more
and more companies turning towards fancy bicycle. In Pakistan standard bicycle is the
bigger segment. The sub segments of the fancy bicycles in which mountain bike"
B%8" 'lectric bicycles and recumbent bicycles. If we want to segment the bicycle
industry then we can segment bicycle in to three categories small si!e bicycles"
medium si!e which is also called fancy bicycles and standard si!e bicycles.
*ancy Bicycles
fancy bicycle has different types which attracts the
youngsters. )hen we talk about speed then indeed one
thing always come in to our mind that less weight
bicycles are more reliable for customer point of view.
7ancy bicycles has the speciality of different frame
designs" colours" braking system" comfortable seats"
stylish reflectors" electric light system for mountains"
classy mudguards" sporty looks" shining nickel brings
more beauty in the product which attracts the customers. *ear system increases the
speed of the bicycle but decrease the pressure of pedals.
Small si(e bicycles
Small si!e bicycles are only for children(s which has child attraction features in which
the colour" frame design are more important features. It lies in the category of 7ancy
cycles.
0
Standard Si(e Bicycles
The third segment is standard si!e bicycle which is for
personal use instead of entertainment. The benefit of
standard bicycle in Pakistan is more as compare to
fancy. The target market of standard bicycle is poor
people or those who work on wages. There are
02"222"222 people who work on daily wages in all the
areas of Pakistan and to be considered as the poor
people. The standard bicycle is the ma$or benefit for the
Pakistani region.
Standard Bicycle speciality
These are the countries 5hina" India" Pakistan"
fghanistan" Bangladesh" and Syria in which the
largest population is dependent on bicycles. The main
features of standard bicycle is heavy weight" we can
carry children giving a ride to our spouse. 5arrying
capacity is more than fancy bicycles. )e can carry
lunch bo#es" laundry cloths" milk containers and a
variety of things. People play bicycle polo in northern
areas of Pakistan. The bicycle of night watchman in
our colonies proudly rides it all night" blowing a shrill
whistle to remind us that he is keeping a careful eye on streets.
9
Production capacity and "a#or players
Production Capacity
The capacity of the Pakistani bicycle industry is to produce 1.45 million bicycles per
annum. 7rom 2222 to 222- the local production of bicycle recurring with 92/"9/0
numbers of bicycles produced according to the industry statistics. 7rom 222- to 2226
94.664 bicycles were produced with the increase of 8.22% from previous year. 7rom
2220 to 2229 the production of bicycles was 66/622 which was a decline from the
previous trends" in year 222:12224" the production increases to appro#imately
902"222 and in year 2224 the capacity increase to appro#imately . million.
0
200000
400000
600000
800000
1000000
2003 2004 2005 2006 2007 2008
Production Capacity
0
200000
400000
600000
800000
1000000
1200000
2003 2004 2005 2006 2007 2008
Trend in Production
Capacity
"a#or Players
ccording to the SMEDA report Pakistan bicycle industry is dominated by one key
player" Sohrab which comprised more than (80 %) ei43ty percent s3are of the whole
industry whereas the rest of (20 %) the production is shared by other si# authori!ed
and unauthori!ed manufacturing companies. Our group members visited many dealers
in the market and talked about the current trends or preferences of the customers.
:
%arket share of Standard bicycles %arket share of 7ancy bicycles
80%
7%
13%
Sohrab
Ea!e
"ther#
5%
$0%
5%
Sohrab
Phoeni%
"ther#
C3inese P3oenix Bicycle
5hinese Phoeni# bicycle was every where in the shops.
ccording to the shop keeper the demand for 5hinese
Phoeni# cycle is very high $ust because of low prices
and stylish designs which attract customers. ll spare
parts of 5hinese bicycles are available in the market.
,ow ;uality and low price 5hinese Phoeni# bicycles
are also available in the market. Some people go to the
price factor and rest go with the ;uality factors. There
are some more types in which you will find <igh price
and high ;uality 5hinese Bicycles. The finishing of the
5hinese bicycle is e#cellent as compare to the local
manufactured bicycles. 5hinese bicycles are not solid
in nature but the fancy categories are the main focus of
5hinese bicycles.
So3rab
Sohrab established since ./0-" as a small assembly unit for bicycles. The =Sohrab> a
standard bicycle" is the largest selling bicycle in the country. Several other varieties
produced under the brand name Sohrab include" sports and fancy bicycles in which
B%8" Panda" ?ip sports" Sprinter" %ountain bikes @with %ulti Speed *earsA.
Sarta# and 9umber
Some local unauthorised manufacturers buy different spare parts and make their own
bicycles at home and then sell into the market by putting the names of Sarta$ and
<umber. I saw two or three Bicycles of Sarta$ in which the handle of the Bicycle was
made of Sohrab and some of the parts were 5hinese and local made. There was no
check from the governmental authorities which is the need of the bicycle industry.
"aret Story of different bicycles
In standard bicycles Sohrab is the one which people like most in Pun$ab. )e asked
many dealers about Sohrab they said Sohrab is like a Brand in standard Bicycles
people always prefers Sohrab Bicycle. 7alcon Bicycles are manufacturing in china
and the dealers put the name B7alcon Pakistan( and sell it in the local market. 'agle
and Sohrab are the two companies which are manufacturing standard bicycles and the
cost is also affordable and providing 0 years )arranty of the frame and other parts as
&a'or &anu(acturin
co)panie# o( *icyc!e
+ndu#try ,Standard and
Fancy *icyc!e#-
Co)panie# .a)e
Chinese Phoenix
Sohrab
Eagle
PEGO
Falcon
SONY
Sartaj
Humber
Olympic
Eagle Karachi
Sinh Cycle
!norgani"e Sector
4
well. Sarta$ is the Indian Bicycle name but manufacturing in Pakistan. Sarta$ is also
providing 0 year warranty of the frame. The same Sohrab frames are being used by
these small companies like Sarta$ and humble.
%ocations
S79,:B S:,T:;
Custam D Sohrab 7actory ,ocally %anufactured
Sheikhupura Coad" Shahdara" in &ila *unbad )orkshops"
,ahore1Pakistan. ,ahore" Pakistan
Phoeni# PE57
Imported from 5hina" ,ocally %anufactured"
In &ila *unbad )orkshops"
,ahore" Pakistan
E:5%E
Shahdara" ,ahore 9'"BE,
,ocally %anufactured" In
&ila *unbad )orkshops
,ahore" Pakistan
Production and Capacity 'tili(ation
The capacity utili(ation of the Bicycle industry isE
5apacity +tili!ation F 'ffective 5apacity .
Production 5apacity
F 2-22 .
-222
F 77 3
0 1000 2000 3000 4000
Capacity Per
/ay
Production Capacity
Capacity 0ta!i1ation
/
Import) Export for *ive years
ll values are in thousands +S dollars
Sr. <o. =ears Import Export
. 222. .-2/ 2
2 2222 .2"66- .:92
- 222- .9"292 ..
6 2226 .0":.2 2
0 2220 ..6/- 2
In the above table we can easily differentiate each year import and e#port. In the year
222. the import was .-2/ thousand +S dollars but e#ports were !ero. In 2222 the
imports were .2"66- thousand +S dollars and e#ports were .:92 thousand +S dollars.
In 222- the e#port level which was .9292 thousand +S dollars was higher than the
previous years on the other hand the e#ports of 222- was only .. thousand +S
dollars. fter the period of 222- the imports started decreasing and come in to the
level of .0":.2 thousand +S dollars. The e#ports were !ero at that time. In the 2220
figures the imports were ..6/- thousand +S dollars which is again decreases from
the previous year 2226. The e#ports were !ero in 2220.
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2001 2003 2005
+)port#
0
500
1000
1500
2000
2001 2002 2003 2004 2005
E%port#
Trend of Imports ?s '#ports in 7ive years
The trend of
imports and
e#ports clearly
$ustifies that the
imports were
very high and
the e#ports were
very low but in
2222 we can see
the increment in
the e#ports of
0
5000
10000
15000
20000
2001 2002 2003 2004 2005
+)port#
E%port#
.2
,a- "aterial .%ocal/ Imported0
Steel
The Steel metal seets and !od len"ts which are heavily used in the manufacturing
process of all the small components of Bicycle are suing from the loc
The steel which is used for manufacturing frames of bicycle are imported from +nited
Gingdom. The reason behind buying from international market was the metal which
can easily bend in the high heat temperature. The metal which is local made was not
easily bent in the high heat temperature and the chances of wastage were very high.
Some small manufactures use local material instead of imported like 'agle
%anufacturers in ,ahore.
Plastic "aterial
Plastic material which is being used in the Bicycle is local. 5ompanies prefer local
because the cost of imported is higher than the cost of local plastic material.
<icel
The chemical which is used for the purpose of electroplating process is also imported.
ccording to the manufacturers the local chemical is in low ;uality but the imported
chemical is good in ;uality.
Paint
The paint which is used for the frames of bicycle is locally made instead of buying
form international market.
:cids
cids which are used heavily used in the manufacturing process are imported. ,ocal
are also available but those companies like Sohrab they prefer imported material.
..
Sources of ,a- "aterial
Steel
The steel which is used for manufacturing bicycle frames are imported from +nited
Gingdom. The steel which is used for manufacturing small metal parts of the bicycle
are local made from #$$ %om&an' and are the main dealer of (a!a)i Steel mills.
7ront head of bicycle is imported from #tal' and *a&an.
Plastic material
Plastic material is from +ni,e!sal -ubbe! Manu.a)tu!e! in ,ahore and some other
vendors it depends upon the prices and relationship of the firms with their vendors.
<icel
&ickel is imported from +nited (in"dom the company which is the largest provider
of nickel all over the world is I&5O.
Paint
Paint is locally used from #%# )om&anies and /u!"e! &aints. Both companies are the
best companies in Pakistan and are considered to be the best provider of paints.
:cids
ll acids which are used in the manufacturing process are imported from +nited
(in"dom and locally made in $ao!e as well. But the companies which are trying to
improve the ;uality of the bicycle they usually prefer imported acids.

.2
Production process
Brief vie- of So3rab Production Plant
)e went to the Sohrab production plant and the assembly line engineer told us about
the production process of the frame and bicycle components. <e said the process of
producing these frames and components all over the world is same but the technology
which the other companies are using may be more advance. There are -0 workshops"
named 0So&12 which are producing different components of bicycles in the Sohrab
manufacturing plant. These 04 workshops covered almost .0 acre of the land and the
remaining .2 acre area is covered by different offices. It was the wonderful
e#perience of our group members while sorting all the production operations in the
factory. %ore than - to : machines were installed in each workshop. The si!es of each
workshop depends upon the nature of the component either it is bigger or smaller. If
the component has different stages of production it re;uires bigger space. Time
management was e#cellent by the workers who were producing different tasks in each
workshop. The main production departments are in this table.
<o. 6ors3op) >epartment <o. 6ors3op) >epartment
. Brake -2 +.5.P Plant
2 )heel 5hair -. %udguard
- Polishing %cs -2 B.B. #le
6 'namelling -- Press
0 'lectric -6 C. %. Store
9 7rame -0 *. Store
: 7.*. Store -9 Cim
4 <andle -: *ranodine
/ Inspection -4 Invoice H.S.S Office
.2 Packing -/ 'IP @%anualA
.. )elding 62 B.%.8
.2 5yclo %achines 6. Hesign Office
.- Ce#. Saddle 62 Pro. Planning and 5ontrol
.6 Pedal ssy 6- %at. 5ontrol
.0 <ub 66 Transit Pool
.9 %achine 60 ,aboratory
.: Pedal Turning 69 H. &ickle
.4 7abrication 6: 7oundry
./ %achine %aintenance 64 &.P @%anualA
22 Screw 6/ Polishing
2. B.B.Shell 02 'IP Plant .
22 B.B.7itting 0. )arping ssy
2- 5utting 02 'IP. Plant 2
26 5.) 5rank 0- '.P. Plant -
20 7.7. 7itting 06 Jig Cepair
29 7ront 7ork 00 5old 7orging
2: <ot 7orging 09 Bulging
24 7ree wheel 0: <eat treat Plant
2/ Pedal #le 04 %otor 5ycle Prod H'?
.-

The table describes the departments which has different task to perform. These
workshops or departments produce different components of the Bicycle. It was very
difficult to study the function of each department in depth. %r. f!al was the engineer
production of training program in Sohrab %anufacturing plant. %r. f!al told us that
it will take four months to understand the system or flow or production process in
Sohrab 7actory.
Process *lo- C3art of Bicycle
.6
"aterial Preparation
In material preparation all the raw material which includes the Steel metal seets and
!od len"ts which are heavily used in the manufacturing process of all the small
components of Bicycle" Plastic material which is being used in the Bicycle" the nickel
which is used for the purpose of electroplating process" paint which is used for the
frames of bicycle and cids which are used heavily in the manufacturing process for
cleaning of metal surfaces.
Bendin4 ) s3earin4
In the bendin" &!o)ess rods are used to bend by heating the rod to make the surface
soft and easily bend. By filling the rod with sand and bend the road with the help of
bending machines. The rod of bicycle handle is also bending with the help of bending
machine. In the sea!in" &!o)ess metal sheets cut in to different shapes according to
the re;uirement of the component with the help of sheets cutter machine. In the rims
of the bicycle metal sheet strips are used to manufacture a rim.

>rillin4) T-istin4
In the drilling process different components re;uire different types of drilling like in
the manufacturing of rim drilling is used in the rim metal surface to fi# the spokes.
The spokes holes are punched simultaneously through a hydraulically operated
machine
6eldin4) ,ivetin4
%aterial
Preparation
HrillingI
Twisting
BendingI
Shearing
)eldingI
Civeting
Spring" nuts
nd Bolts
ssembling
PaintingI
'lectroplate
Packing
.0
The welding process is also called bra!ing process which is used in the $oining of
bicycle $oints. fter welding process the bra!ing metal frame are cleaned off by
pickling in acid solutions and by washing the metal surface until it is smooth.
Sprin4/ nuts and Bolds
Hifferent machines are used for making springs" nuts
and bolds. These workers are making different types
and si!es of nuts" springs and bolds. 'ach machine
operates manually by one or two workers.
Paintin4) Electroplatin4
Paint may be applied by hand spraying or by passing the frames through automatic
spraying rooms. The finishing of hand spray is better than the finishing of automatic
spray machine. <and spray re;uire more time. 5hrome plating may also be used
instead of paint on components such as the fork blades in few cases. fter spraying
process they bake the frame for few minutes in to the temperature room in order to
dry the paint. Some of the parts of bicycle re;uire nickel coating instead of paint and
the plant is called automatic electroplating plant. The parts are loaded from one end
and then go through the electroplating process. t the end of the process" they are
unloaded from the same end.
:ssemblin4
In the assembling process if the re;uirement from the dealer to assemble the bicycle
then they install all the parts of the bicycle.
Pacin4
In the packing process si# bicycle parts are packed into plastic and cardboard bo#es to
supply to the dealer.
.9
Production Process of Bicycle *rame
Flow chart
Pipes
Pipes are bought from outside vendors. Theses pipes are in lengths and are of special
;uality in term of thickness and si!e. The 7lat steel sheet wrapping it into a tube and
welding it together along the length of the tube and these tubes may then be further
Caw %aterial
Pipes
7ilin4
Sawdust and
clean
)ashed with
Gerosene oil
Cuttin4
Stretc3in4
Bra(in4
Cleanin4
*inis3in4 :li4nin4
.:
manipulated to increase their strength and decrease their weight by butting" or altering
the thickness of the tube walls.

7ilin4
The pipes are covered with oil to protect them from rust. The process of oiling is done
by using the paint brush and dips it in to the oil and rubs over the surface of pipes.
6as3ed -it3 erosene oil
fter oiling these pipes are covered with kerosene oil and wash the pipes with
kerosene oil.
6iped -it3 Sa-dust and cleaned
fter washing with kerosene oil they rub the surface of pipes with sawdust which
absorb the oil from the surface of the pipes.
Cuttin4
In the cutting process pipes are cut in to different si!es according to the re;uirement.
Pressing machines are used in cutting the pipes according to different si!es.
Stretc3in4
Stretch the pipes thinner and longer tubes" a process called cold drawing. The tubes
may be shaped and tapered into a variety of designs and lengths. The fork blades may
have to pass through more than a do!en operations to achieve the correct strength"
weight" and resilience.
Bra(in4 Process
.4
Tubes can be $oined into a frame either by hand or machine. 7rames may be bra!ed"
welded" or glued. The bra!ing filler is generally
brass @copper1!inc alloyA or silver" which melt at
lower temperatures than the tubes being $oined.
The T $oints are made in dies in which pipes are
fitted. In bra!ing process the parts in which
front wheel frame are for blades which hold
the front free wheel. The four tubes which are
connected together in forming a frame in which
the Seat tube is connected with the top tube
and the rear tubes. >o-n tube is connected with
the 3ead tube and the seat tube. The rear triangle in the above diagram consists of the
c3ain stay/ seat stays" and rear -3eel dropouts are attached to the seat tube from
both ends.
:li4nin4
The assembled frames are placed and checked for proper alignment. d$ustments are
made while the frame is still hot and malleable. 7orge from hammer to ad$ust the
frame. d$ust the frame from all sides according to the re;uired measurement.
Cleanin4
The e#cess bra!ing metal frame are cleaned off by pickling in phosphate solutions and
by washing and grinding the bra!ing until it is smooth.
*inis3in4
Flow chart of Finishing
Prepare
Surface
'lectrostatic
Spray Paint
Kinc5alcium
Phosphate Polyclean
5hromic
cid
./
The frames are painted to create more finished appearance the frame is first prepared
with an undercoat and then painted with colour enamel. They first prepare the surface
of the L././ ./././
22
MMNO222222L2222 222222 ed. Polyclean is used for degreasing. Kinc calcium
phosphate layer is added for paint purpose. The pores are then sealed with chromic
acid. The frame is passed through an electro static spray painting plant. The painted
parts are passed through an oven where the temperature is kept between B.021.92(
degree 5. The frame is first sprayed with primer and then re coated with paint for
luster finish. In case of red colour" the paint is sprayed with a manual spray gun. 7irst
the part is covered with black paint then luminium colored undercoat is done and
finally sprayed with red paint.
Production Process of ,im
7lat Steel
Strip
Turning Bending
HrillingI
Punching
)elding
Polishing
%achine
&ickel
Process
2.
The machine takes a flat steel strip" turns the edges" bends and welds them. The sheet
is rolled and person sits and cut the sheet according to the re;uired si!e with the help
of a gauge. The spoke holes are punched simultaneously through a hydraulically
operated machine. They also have a person who punches these holes manually for
fancy and non standard rims. They have polishing machine that polishes the rims.
fter polishing process rims go to the Hepartment of &ickel where the process of
electroplating implemented on the rims which give the silver shining colour to the
rims. fter the entire process they fi# spokes" which are laced one round at a time
between the rim and hub flange.
Production process of cran
Dish form cuttings from the Mild Sheet in the picture.
BlankingI
Piercing
PunchingI
Teeth cut
Inde#ingI
Hish 7orm
&ickel D
5hrome
Plating
Inspection Packing
Teeth
Tapering
5enter <ole
Spline
5utting
Spline
7orming
22
)e saw the crank workshop as well where the workers were cutting the %ild sheet in
to circles and after that they further make holes in to the circles and after the
completion of crank sets they further move to the H &ickel department for
electroplating process. The crank set supports the pedals and transfers power from the
pedals to the chain and rear wheel. 5rank sets consist of steel or aluminium alloy
crank arms" chain rings" and the bottom bracket assembly of a#le" cups" and bearings.
They are attached with bolts and caps into the bottom bracket of the bicycle frame.
The pedals are then screwed to the ends of the crank arms
Production Process of pedal :rm
.
Problem faced by Industry
Pakistan Bicycle market is struggling to establish itself due to smuggled bicycles
coming from 5hina and India" high raw material utility prices. There is very low
e#port presence of Pakistan in this sector and according to IC @Industrial advisory
<eating
Performing
7orging
Trimming
Hrilling
Ceaming
Thread
making
@left handA
Spline
7orming
Spline
Pushed in .
Sprocket
arm
Buffing
&ickelD
5hromium
Plating
7inal
Inspection
Packing
2-
reportA Bone player So!ab dominates with 42 3 share in the local market and for a
new manufacturer to establish itself in this sector" he would need to concentrate on the
fancy bicycle segment and may flourish if he enter in to the $oint venture agreement
with some internationally reputed firm(. If bicycles imports from India and china are
allowed" then it will be difficult for the local bicycle industry to compete on the basis
of prices competition.
Political situation is one of the important ma$or issues faced by the Bicycle industry.
The unstable political system and terrorist activities are creating hurdle for this
industry in which e#port of bicycles to fghanistan is one of the biggest challenge for
the industry. 5ross border trade between fghanistan and Pakistan was seriously
disturbed by these terrorist activities on both sides of the border line. Trade between
fghanistan and Pakistan was closed since the +S forces holds the command of
fghanistan after / I.. military operation. %r. f!al told us that before / I.. the
industry was moving towards growth but after the incident of / I.. the graph of
growth moves towards decline stages after the bad incident of / I ... %r f!al
@'ngineer productionA told us that all the industries which are linked with the bicycles
industry are also affected by / I .. incident.
%r. f!al @'ngineer productionA told us that there are 222 top level union labours
who are taking salaries from Sohrab management and these workers are not working
in this factory but these people can seen every where in the Sohrab factory. %r. f!al
told us that there are 22: owners of Sohrab and the main issue among these owners
are decision making process.
The tools which are used in manufacturing process were imported but it could be
difficult for the firm to import the tools on regular basis. The other issue is the import
duties on such heavy e;uipments are the ma$or problem faced by the industry.
)orkers who are working in this industry are non engineering background. %ost of
the labours are graduates with simple B degree and the rest of the labour are hardly
metric pass. )hen I asked %r f!al that what is your ;ualificationP <e replied that I
am intermediate with mechanical diploma holder. %r f!al said I had great long time
e#perience with this industry. )e went to another production manager and he was the
only person who had a BS' mechanical engineering degree and told us about the
communication problem among different workers on field.
People who are highly educated avoid staying in the bicycle industry for employment
because of low salaries and less incentives provided by the Sohrab management
authorities forces the educated workers to switch the $ob.
Tec3nolo4ical %evel
The technology which is used by the Pakistan bicycle industry is very low. If we
compare the technology used by Pakistan bicycle industry with the international
bicycle industries then we can say that we are /2 percent far away from those latest
technology users.
26
The machines which are running in Pakistan bicycle industry were installed in ./0:
and after that time they $ust replace the spare parts instead of the entire plant or
machine.
ccording to %r. f!al @'ngineer productionA told us that the machines which are
used in the process of manufacturing was towards the last stages of life. *overnment
is not paying any attention in helping the bicycle industry in bringing the new
machinery in Pakistan.
The paint department is using automatic machines which we can say that those
machines are slightly towards a symbol of new technology.
ccording to %r. f!al @'ngineer productionA the electroplating department is using
medium level technology as compare to other machinery.
Pricin4
s there are two ma$or categories of the cycleE
Standard Bicycle
7ancy Bicycle
So" Prices areE
verage Price of Standard BicycleE Cs. 6:22
verage Price of 7ancy BicycleE Cs. 4222
5overnment Policies and Incentives
There are some of the government policies which are related to bicycle industry in
Pakistan. These includeE
"aterial Constraint
*overnment has pointed some of the specific vendors for purchasing the raw material
only from them.
%abour %a- Constraint
*overnment has a ruleE
&ot to fire the worker in any case without the proper documentation and with
in a long period of time.
20
nd also the company should have to pay the wages even if the factory is not
in the operations.
lso if the worker is on leave so the company have to pay himIher half of its
pay.
29
*uture Prospects .after 6T70
s Pakistan is the member of the )TO since .
st
January" .//0. fter the )TO
applied on bicycle industry so there are some of the benefits associated with this
prospect. These are asE
The raw material especially ni)3el and the steel !ods which are directly
imported from different countries by the companies" will cost less because of
some of the import and e#port duties charged on them" so the prices of the
bicycles will automatically be cut down.
Some of the parts in finished products like s&o3es and )ain 4 its )o,e! are
also imported from some countries" so after )TO their prices will also cut
down.
There are also some of the demerits of the )TOE
fter )TO" Pakistan bicycle industry will face a lot of competition from other
multinational companies.
They are not able to compete with them in terms of prices.
They are not able to compete with them in terms of ;uality.

2:
Biblio4rap3y
httpEIIwww.smeda.orgIbusiness1developmentIpre1feasibility1studies.htmlI download
httpEIIwww.smeda.orgIarchives.phpI download
httpEIIwww.smeda.orgIinfo.phpPidF44
Pakistan IPun$abI,ahoreI+%TIlibraryIstatistical data
PakistanIIC reportsIbicycle Industry
Pakistan IPun$abI,ahoreIShahadraISohrab 7actoryItraining centerI%.f!al @engineer
ProductionA
Pakistan IPun$abI,ahoreIShahadraISohrab 7actoryItraining centerIdeputy production
%anager
Pakistan IPun$abI,ahoreIShahadraISohrab 7actoryI <adlug Bluging ShopI%unir
hmad @workerA
Pakistan IPun$abI,ahoreIShahadraISohrab 7actoryI5hain )heel Shop
Pakistan IPun$abI,ahoreIShahadraISohrab 7actoryICI% Shop
Pakistan IPun$abI,ahoreIThe %allI&ila *unbadISohrab dealerIQounas cycle
works@shopA
Pakistan IPun$abI,ahoreIThe %allI&ila *unbadISohrab dealerIsim cycle
Store@shopA
Pakistan IPun$abI,ahoreIThe %allI&ila *unbadISohrab dealerI,ondon cycle
store@shopA
Pakistan IPun$abI,ahoreIThe %allI&ila *unbadISohrab dealerIS. <anif D
Brothers@shopA

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Table of Contents

Executive Summary ..................................................................................................... 2

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