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Starkenn Sports plan to make high end Bicycles in Chakan.
Starkenn Sports plan to make high end Bicycles in Chakan.
As this country gets mature and ready for high end bicycles, Starkenn Sports is planning to set up a facility for assembly and manufacturing at Chakan in Pune to cater to the growing demand. They already ran sales operations, but this move will help them earn better profits and price their bicycles slightly more affordably.
Starkenn is the exclusive distributor in India of Giant bikes, the world's largest premium bicycle brand. The facility is likely to be up and running by the end of 2016 and will have an annual production capacity of 45,000 units.
Starkenn will house the facility at the factory of its joint venture partner Badwe Engineering at Chakan. Badwe is one of the known part suppliers to reputed companies, like Bajaj Auto, etc. This will bring down costs to onefifth of setting up a greenfield unit, which usually needs a capital expenditure of Rs 60 crore.
At the recent inauguration of a new exclusive outlet in Mumbai, Pravin Patil, managing director and chief executive officer of Starkenn Sports told ET that it will be the first facility in the country that will roll out a high-end aluminium bike with 60% localisation. Key parts would be imported from China, Taiwan and Japan.
By setting up a facility in India, the bicycle maker can avoid the high import duty ranging between 40% and 44%.
"The import duty is exorbitant, it hurts, so we have decided to set up a plant. To begin with we will start manufacturing bikes for children (priced at Rs 7,000 and above) followed by adult bikes (Rs 14,000-25,000) with 60% local content. The demand for high end bikes is very strong, with more exclusive stores like here in Mumbai which offers complete package of sales, service, spares and accessories, we continue to outpace the market growth."
Patil says over a period of time with brands like Giant becoming bigger, the average selling price has gone up to Rs 25,000-50,000 per bicycle in the high-end market.
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Read more at the Source link: Starkenn Sports plans to make high-end bicycles in Chakan - The Economic Times
Starkenn Website: Best Cycles in India | Buy Bicycles Online | Cycles in India-Starkennbikes
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Guys, Starkenn is already in India, through its limited distributor network, but this move will enhance their pricing for the Indian customers.
What do you think about it, or the rising bicycle industry in general? Was this a wise move?
As this country gets mature and ready for high end bicycles, Starkenn Sports is planning to set up a facility for assembly and manufacturing at Chakan in Pune to cater to the growing demand. They already ran sales operations, but this move will help them earn better profits and price their bicycles slightly more affordably.
Starkenn is the exclusive distributor in India of Giant bikes, the world's largest premium bicycle brand. The facility is likely to be up and running by the end of 2016 and will have an annual production capacity of 45,000 units.
Starkenn will house the facility at the factory of its joint venture partner Badwe Engineering at Chakan. Badwe is one of the known part suppliers to reputed companies, like Bajaj Auto, etc. This will bring down costs to onefifth of setting up a greenfield unit, which usually needs a capital expenditure of Rs 60 crore.
At the recent inauguration of a new exclusive outlet in Mumbai, Pravin Patil, managing director and chief executive officer of Starkenn Sports told ET that it will be the first facility in the country that will roll out a high-end aluminium bike with 60% localisation. Key parts would be imported from China, Taiwan and Japan.
By setting up a facility in India, the bicycle maker can avoid the high import duty ranging between 40% and 44%.
"The import duty is exorbitant, it hurts, so we have decided to set up a plant. To begin with we will start manufacturing bikes for children (priced at Rs 7,000 and above) followed by adult bikes (Rs 14,000-25,000) with 60% local content. The demand for high end bikes is very strong, with more exclusive stores like here in Mumbai which offers complete package of sales, service, spares and accessories, we continue to outpace the market growth."
Patil says over a period of time with brands like Giant becoming bigger, the average selling price has gone up to Rs 25,000-50,000 per bicycle in the high-end market.
---
Read more at the Source link: Starkenn Sports plans to make high-end bicycles in Chakan - The Economic Times
Starkenn Website: Best Cycles in India | Buy Bicycles Online | Cycles in India-Starkennbikes
---
Guys, Starkenn is already in India, through its limited distributor network, but this move will enhance their pricing for the Indian customers.
What do you think about it, or the rising bicycle industry in general? Was this a wise move?
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