Avon Leads the Way

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Business Wire India

A humble beginning

Avon Cycles Ltd is the oldest and pioneer cycle manufacturer whose Promethean ability made them the third-largest manufacturer in the enormous Indian bicycle industry. Avon Cycles began modestly with a brake and bicycle saddle unit in the year 1948. Its diligence and zeal led to the realization of the Pahwa brother’s lifelong ambition of providing quality yet affordable means of transportation shape in the form of Avon Cycles in the year 1952. Mr. Onkar Singh Pahwa, the chairman and Managing Director of Avon Group has been associated with the group for the last 47 years and also held the post of CMD since 2002. The Pahwa Scions, Mr. Rishi Pahwa, and Mr. Mandeep Pahwa also take the legacy of Avon Group forward. Mr. Rishi Pahwa heads Marketing, Production & Purchase whereas Mr. Mandeep Pahwa heads Finance and Sales. The company prides itself on having the simplicity of a family business, but with an efficient corporate functionality with a hierarchy of Executive Presidents, Vice Presidents, and General Managers heading various functions. 
 
As the Indian bicycle industry began to rise, most bicycle manufacturing companies relied upon ancillary companies for components needed for the complete bicycle assembly. Avon Cycles, being a pioneer boasted off their facilities where they made their own components such as steel tubes, steel strips, and even hot rolled steel. Avon group is the first group in the world that has achieved full backward integration which is unequaled and unmatched from anywhere else.
 
Boosts of a sound financial foundation

As one of India’s leading bicycle companies, Avon Cycles is known for manufacturing bicycles, E-Rickshaws, and electric scooters. They have also diversified by entering the market for fitness equipment with Avon Fitness Machine Private Limited. Avon Cycles authorized capital is almost INR 100 lakhs and its paid-up capital is 89.6 percent which is about INR 89.6 lakhs. The company achieved a sales figure of INR 709 Crores in 2020-21.
 
Its market position is backed by a strong brand name, a wide network of distribution, favourably located units, and quality products. Being in the top 3 players in the cycle industry in India, it has an estimated market share of about 15%. The geo-favourable positioning in Ludhiana which is close to the end-user and components market provides transportation cost-saving and thus, supports the competitive pricing of its products.
 
Pioneer of innovation with changing times

Avon Cycles key positioning has always been ‘the affordable cycle for all’ thus, it emphasized developing a low-cost simple cycle that addresses the mobility issues of the less-privileged population. In 1952, the first batch of Avon bicycles was priced economically at INR 100, making it truly, “savari of a common man”. Avon Cycles continues to successfully deliver quality products to one-third Indian cycling population over the years.
 
Today, Avon Cycles manufactures over 200 different cycle models such as MTB, Roadster, Young trainers, cycles for kids, adults, and roadster segment which cater to consumer demand across the 14 to 55 years age group. These products embody style, luxury, quality, and affordability which are synonyms with Avon Cycles.
 
In order to cater to the more emerging urban consumers, Avon Cycles has launched its mass premium segment named Cyclelec. Being an agile company, Avon Cycles understood that the Covid pandemic has accelerated the need for safer, convenient but at the same time affordable alternatives to public transport. Many studies have indicated that electric bicycles are gaining preference in urban markets given social distancing guidelines and various quarantine rules.

In light of this, Avon Cycles has technologically advanced Cyclux into an e-cycle with a Li-Ion 36V Battery with 5.8Ah, IP 67 production, and a 2 years warranty. Further, a series of e-cycles are on their way starting with the uniquely spectacular, CONNECT I and CONNECT II. The one-time charge of four hours is enough for a 25 km drive in throttle mode and 30 km in the PAS Pedalec mode. Furthermore, Avon Cycles became the first brand to launch innovative bicycle models such as SLR and BMX in India.
 
Ever-expanding manufacturing prowess

Avon Cycles has three main manufacturing plants in India, out of which two are located in heart of the business city of North India, Ludhiana. In order to cater to the consumer in the East, there is a manufacturing plant in Hazipur, Bihar which is also known as the cycling capital of the country.
 
Avon Cycles prides itself in rolling out an astonishing 2.5 million machines per year which are sold through an efficient network of 1500 channel partners across the country. Avon not only dominated the home market but went global by initiating exports to Afghanistan in the year 1965 and has since strong market presence in some parts of Europe, Africa, and Sri Lanka.
 
With the investment of INR 100 crores, Avon Cycles is in the process of commissioning a fourth manufacturing unit in Neelon near Ludhiana which would increase the current 10,000 cycles per day capacity by an additional 5,000 cycles per day. This plant would be one of the kind, state-of-the-art facility which will focus on meeting the demands of producing mass premium and high-end cycles thereby, providing both quality and quantity to today’s consumer.
 
Sustainable, conscious, and consumer-friendly solutions

Avon Cycles has always maintained its strongest pillars, innovation, and sustainability. In 2017, this spirit drove them to setting-up wind and solar power projects in the states of Bihar, Karnataka, Madhya Pradesh, Maharashtra, Gujarat, and Punjab with a total installed capacity of 45 MW.
 
The world of Avon Cycles diversified and also takes the pledge of sustainability a step forward with the launching of the E World of Avon in the year 2007. These electric vehicles are sold through 300 exclusive dealers across the country.
 
Taking their product portfolio to new heights, they marked their presence in the world of fitness equipment by launching around 400 products across the fitness and sports category in the year 2015 that are available at over 300 outlets which include 100 exclusive stores. 
 
Philanthropy, giving back to society

This belief has led Avon Cycles to the establishment of Kaushalya Devi Pahwa trust, which runs two charitable hospitals in Ludhiana. These hospitals work diligently to provide free and accessible healthcare for economically weaker sections of society. The group is also committed and is contributing towards the education, personality development of physically challenged individuals. They have also set up hostels and homes for women and orphans. They also fulfill humane responsibility for animal welfare.
 
Well-poised for the future

With growing purchasing power, willingness to adapt, strong internal demand, India is an ever-lucrative demand destination. Government policies such as Make in India and Vocal for Local have induced confidence in the minds of both local manufacturers and Indian consumers.
 
Avon Cycles with its strong roots, financial agility, industrial robustness, and future orientation is well prepared to emerge as a strong contributor to India’s growth story. Their strong footprint in the rural and urban mobility space and willingness to adapt to electric solutions or diversify to fitness and wellness space is well recognized and appreciated by the great Indian consumer class.