INDUSTRIAL ANALYSIS REPORT

BICYCLE INDUSTRY

GUIDED BY: MRS. G.SREEVANI

SUBMITTED BY

N. SAMPATH KUMAR

(17H61EOO62)
 INTRODUCTION
It was the year 1890 when Indian folks witnessed the bicycle for the first time.
However the import of cycles started in 1905 and continued for more than 50
years. In the year of 1953 Indian government banned the import of the cycles
completely. In 1890, price of an imported bicycle was around Rs. 45.In the year
1917, during the First World War the price of cycle jumped to Rs. 500/- but very
soon dropped considerably and came down to Rs. Rs. 15/- or so.

. Bicycles were introduced in the 19th century in Europe and, as of 2003, more
than a billion have been produced worldwide, twice as many as the number of
automobiles that have been produced. They are the principal means of
transportation in many regions. They also provide a popular form of recreation,
and have been adapted for use as children's toys, general fitness, military and
police applications, courier services, and bicycle racing.
LIST OF 5 COMPANIES
 HERO BICYCLES
 ATLAS BICYCLES
 AVON BICYCLES
 HERCULES BICYCLES
 TUBE INVESTMENT BICYCLES
SWOC ANALYSIS
STRENGHTS:
 Government schemes encouraging customers to buy bikes.
 Innovative technology used for attracting more customers.
 Less R&D costs(hardly any model changes).

WEAKNESSES:
 Growing competition.
 “synergy bike” is unique, but can be easily copied by competitors.
 Lack of high speed.
OPPORTUNITIES:

• Government funding for future projects.

• Increasing demand for eco friendly motor driven bicycle
• Expansion in other foreign markets where local made bicycles are
expensive

CHALLENGES:
• Companies mass producing bicycles on similar concepts abroad like China.
• Not being able to meet demand.
• Mass import of eco friendly bicycles
PEST ANALYSIS
POLITICAL FACTORS:
 Tax policies , trade regulations , political influence and some of the rules.
 Regulations of government policies.
 Government schemes in favour of cyclists.

ECONOMIC FACTORS:
 Economic growth , exchange rate and inflation rate.
 Home economy going into recession.
 Indian jobs and spending
SOCIAL FACTORS:

• Popularity , subculture , mobility , safety.

• Change in consumer life style.
• Good company image.

TECHNOLOICAL FACTORS:
•High quality affordable bicycles and technologies are still Giant bicycles .
•Efficiency in electric motors and dynamos used.
•What is innovative technology today will be commonly used by other
companies in the future.
MARKETING MIX
 PRODUCT: Every company is having other products based on the same
company name in many other fields.

 PRICE: Companies using pricing strategies like competitive pricing,

penetrarting pricing in accordance with competition.

 PLACE: Where the market forces can have equilibrium companies

showing interest to launch their products over there.

 PROMOTION: Companies are promoting their cycles with the help of

advertisement agencies
HUMAN RESOURCE POLICIES
 RECRUITMENT
 SELECTION
 TRAINING & DEVELOPMENT
 COMPENSATION
FINANCIAL ANALYSIS
Current Ratio=Current Assets/Current Liabilities
FIGURE 1: Graphical Representation of Current ratio

Chart Title
4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00
2017 2016 2015 2014 2013

ATLAS HERO AVON HERCULES TUBE

Formula: Quick Ratio=Current Assets-Inventory/Current Liabilities
TABLE 2: Quick ratio of selected companies from 2013-2017

3.50

3.00

2.50

ATLAS
2.00
HERO
AVON
1.50
HERCULES
TUBE
1.00

0.50

0.00
2017 2016 2015 2014 2013
Formula: Net profit margin Ratio=Net Profit/Net sales*100
TABLE 3: Net profit ratio of selected companies from 2013-2017

Chart Title
120.00

100.00

80.00

60.00

40.00

20.00

0.00
2017 2016 2015 2014 2013

ATLAS HERO AVON HERCULES TUBE

Formula: Debt-Equity Ratio=Debt/Equity
TABLE 4: Debt-Equity ratio of selected companies from 2013-2017

Chart Title
4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00
2017 2016 2015 2014 2013

ATLAS HERO AVON HERCULES TUBE

Formula: Operating profit Ratio=Operating Profit/Net sales*100
TABLE 5: Operating ratio of selected companies from 2013-2017
Chart Title
120.00

100.00

80.00

60.00

40.00

20.00

0.00
2017 2016 2015 2014 2013

ATLAS HERO AVON HERCULES TUBE

FINDINGS:
 India is the second largest manufacturer of bicycles in the world, with 12
million units annually.
 Hero Cycles is the largest bicycle manufacturer in the world.
 Indian bicycle industry is very large with producing almost 10% of the total
bicycle production of the world.
 Indian bicycles exports about $200 millions of worlds total bicycle
production.
 As per latest trends of survey, 85 out of 160 respondents survey stated that
they were favour of online purchase of bicycles
 It was also the first one to introduce aluminium frame bicycles in India.
 According to “India Bicycle Market Outlook, 2021”, the Indian bicycle
market is expected to grow at immense growth rate during forecast period
due to increasing the adoption of premium bicycles apart from normal
ones.
 CONCLUSION:
A bicycle is a common mode of transport for people in rural areas
particularly within low income societies, but is continuously gaining traction in
urban areas as well especially among successful and affluent people. The
categorization of bicycle market can be done based on end user viz. retail sector
and institutional sector. Retail sector encompasses residents or people who buy
bicycles for their personal use or for their near and dear ones from retail outlets.
Whereas institutional sales are usually done in bulk and the prospective customers
include Central or State Governments or societies or clubs at times. Now more
Indians living in cities take cycling for reasons ranging from keeping fit, to general
purpose, office commuting and leisure; cycling clubs have also mushroomed on
social networking sites. As these cycles are eco-friendly people now-a-days
showing munch interest in purchasing of cycles where in turn it is increasing the
sales of these companies.
THANK YOU