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| Hero Cycles |
The company has attached up with Allahabad-based Sonata Finance in place of financing bicycle purchases, under which the micro finance safe will provide loans of Rs 100 apiece week to customers in the rural areas.
"This is a test legal action. We are preliminary in eastern UP. Once we are profitable at this point, after that we will look to enter Andhra Pradesh with the same belief," Hero Cycles Ltd Managing Director Pankaj Munjal told PTI.
Sounding upbeat not far off from the testing, Munjal thought: "When villagers can good buy buffaloes on advance through micro finance firms, near is rebuff goal why the same cannot be ready in place of bicycles, which will add a fate of quantity to their lives".
Munjal thought the thought behind financing of bicycles is to kind it to be had inside the extent of villagers whose monthly takings is far a smaller amount than the overall cost of the artifact.
"The monthly takings of a villager can be as a smaller amount as Rs 2,500 and in the absence of a financing scheme, he is unable to shell barred on Rs 3,000 to good buy a bicycle by the side of single function. By staggering barred the payment through financing, we are looking to kind the artifact inside his extent," Munjal thought.
Admitting with the aim of near are risks in place of default, he thought: "There is a law-breaking deposit formed (to overcome it)".
Munjal thought with the bicycle infiltration in India as low as 18 apiece cent, with a calculate twelve-monthly sales of 12.5 million units carry on time, near are lots of opportunities to be tapped, especially in the rural areas.
"Out of our calculate sales of 5.3 million units carry on time, 65 apiece cent came from the rural areas and still near is a fate of would-be in place of growth," he thought.
Even as the company focuses on the rural marketplace, Munjal, thought the company will not ignore its premium segment bicycles as the segment has besides been viewing high-quality growth on the years.