Building BusinessServices

Section 21

Ludhiana

Ludhiana, Punjab · Manufacturing

Bicycles and bicycle parts

sourced figures
2
main products
6
businesses to start
5

The story

Ludhiana became India's bicycle city after Partition, when small workshops making cycle parts grew into large brands such as Hero, Avon and Atlas. Hundreds of small units make one part each — spokes, rims, chains, saddles — and assemblers buy them nearby, which keeps costs low. The same engineering base later fed the city's auto-parts, sewing-machine and fastener trades. Today the cluster sells mainly in India and exports to Africa, Asia and Europe.

In numbers

  1. Ludhiana accounts for 75% of the country's total bicycle production and 92% of bicycle parts' manufacturing.

    The Tribune — Bicycle industry demands incentive boost from Modi 3.0 to push exports · 2024
  2. The Ludhiana Bicycle & Engineering Parts cluster SPV had 27 functional units with a turnover of ₹270 crore.

    MSME-DI Ludhiana — Brief Industrial Profile of Ludhiana District · 2012

Ways in for a newcomer

  • Making one bicycle part (spokes, saddles, mudguards, brake sets) for the big assemblers
  • Electric-bicycle kits, motors and battery packs as an add-on line
  • Powder coating, plating and painting as a job-work service
  • Exporting budget and children's bicycles through merchant exporters

Problems the cluster faces

  • Cheaper Chinese bicycles and parts
  • Steel price swings
  • Thin margins for small part makers
  • Shift of demand towards electric bicycles needs new skills

Businesses to start here

Bicycle Tyre and Tube Manufacturing Unit →Electrostatic Powder Coating Unit →Steel Tube Manufacturing Unit →Nuts, Bolts, Washers and Rivets (Light Engineering) →Motorcycle Chain Manufacturing →

Sources (2)
  1. The Tribune — Bicycle industry demands incentive boost from Modi 3.0 to push exports
  2. MSME-DI Ludhiana — Brief Industrial Profile of Ludhiana District