28 minute read
A NEW ERA FOR CFOSE
Collaboration with German tradeshow firm to attract a wider audience to India’s premier bicycle show Changes to bring a new era to CFOSE
LUDHIANA, India – India’s premier bicycle show, the Cycle, Fitness & Outdoor Sports Expo (CFOSE), is all set to join the big league. The annual show in Ludhiana, the hub of the Indian bicycle industry, has long been scouting for collaboration to internationalise the show. It looks like their efforts are set to pay off.
Satnam Singh
“W e are in touch with German tradeshow specialists who organise events in India and globally. This firm has shown interest in collaborating with CFOSE. The collaboration is being finalised and will likely be announced in the second half of November,” said the man behind the Indian bicycle show, Surinder Brar, MD of CFOSE. “We hope this move will facilitate the show to emerge as one of the premier bicycle shows in this part of the world.” The German partner, a major tradeshow organiser with a presence in multiple locations in India, organises more than a dozen tradeshows spread across various industries. CFOSE is looking to entice bigger brands and a more global audience to its events in the future. Photos: Satnam Singh
German influence in 2021 Interestingly, this year’s show was inaugurated by Sonia Prashar, deputy director-general of the Indo-German Chamber of Commerce and president of the Indian Exhibition Industry Association. The presence of the top German trade official also points towards an evolving German connection with the Indian show. “After holding the event regularly for last 12 years, our objective now is to upgrade the bicycle show to attract a global audience. The show has matured enough, and it is our goal to finally connect with the international bike industry,” Brar said. Once the joint venture has been signed, the show will likely move to a bigger location near Delhi, where other international exhibitions are often held. The strategy is to organise one show near Delhi with the German partner in February/March, while another show in Ludhiana would take place around October/November.
Subdued 12th edition of CFOSE The 12th edition of CFOSE was held from 1-3 October 2021 and attracted about 70 exhibitors from India. There was no international participation due to travel restrictions related to the Covid-19 pandemic. The show attracted mid to small-scale bicycle assemblers and dealers from across the country, with big brands opting not to attend. It will be interesting to see if the organisers can entice them once the joint venture with the German exhibition company has been signed. Nevertheless, the 12th edition of the show attracted the largest number of trade visitors from across the country, claims Brar. “More than 4,200 trade visitors attended the show, which is regarded as the largest compared to previous editions.” With Covid-19 restrictions relaxing in the country and vaccination numbers increasing, dealers and trade visitors came out in large numbers to visit the event. The 3-day show was down to almost half the number of exhibitors compared to the 11th edition in 2020, held just before the pandemic in the country. Although the pandemic impacted the edition in 2020 as fewer exhibitors and visitors could visit from abroad, it still attracted 150 exhibitors. In the 12 years of hosting CFOSE, the 10th edition was the biggest to date, with 200 Indian companies and 40 overseas exhibitors showcasing their range.
Indian firms forced to source locally The import-driven bicycle and parts industry that flourished in recent years has received a setback in the post-coronavirus phase as importers are increasingly facing challenges with shipments. “The freight rates reached an alltime high due to ongoing container shortages. A single container that shipped from China to Ludhiana cost INR150,000 (€1,750) before the pandemic, but now costs almost INR1 million (€11,600), making it unviable to import from China,” complained Rajesh Kalra, MD of Suncross Bikes, a regular exhibitor at the show. Suncross Bikes produces Raleigh and its own brand of bikes and distributes almost 30 international bike brands and accessories in India. The pandemic has seen lead times for prominent parts brands out of Asia increase considerably. Lead times in the post-pandemic phase could escalate up to two years in some cases. The demand for international parts and accessories brands was high last year but slowed down this year due to low supplies. Suncross has formed a solid network of suppliers in China and Taiwan as the company operates sourcing offices in both countries. “We have a presence in both countries but still face supply issues,” confirms Kalra. The ongoing challenges will likely affect the supply chain equation shortly as European buyers are increasingly scouting for alternate supply channels in countries like Vietnam, India, Sri Lanka and Bangladesh. “China is focusing more on e-bikes and premium bike ranges. This has forced several Indian importers that depend on imports from China to look at domestic suppliers who are now investing in new machinery to improve the quality of finished products.” Even Suncross restricted imports from China and discontinued imports of steel parts, frames, etc., and has started sourcing locally. Localisation in difficult times helps the domestic bicycle industry. Suncross is also hiking capacity to meet the surging demand in the domestic market. “We are currently manufacturing 15,000 units per month but are planning to hike capacity by 30% to meet increasing demand,” concludes Kalra.
Technology transfer with foreign partners
The annual show is also supported by the Federation of Industrial & Commercial Organization (FICO). The Ludhiana-based industry body works in upgrading manufacturing standards among micro and small bicycle manufacturers. It has 2,600 members, with 1,400 being micro and small bicycle producers, parts manufacturers and dealers. “We are encouraging dealers to attend or visit the CFOSE as the exhibition provides a platform to expand their network,” said Gurmeet Singh Kular, president of FICO. FICO is also instrumental in technology transfer among micro and small bicycle and parts producers. “We have been actively helping our members to introduce new technology as per the changing trends. We facilitate local manufacturers in their search for foreign partners for technology transfer. We identify potential foreign companies keen to work with Indian partners and are instrumental in technology transfer in the areas of reflectors, hubs, alloy rims, etc. We are also in touch with Taiwan-based Shuz Tung Machinery to introduce hydroforming technology in bicycle frame tubing in India,” noted Kular.
Holland Mechanics secures strong foothold in e-bike assembly market in India
LUDHIANA, India – Indian bicycle producers are expanding their portfolio and investing in e-bike production lines. Dutch bicycle machinery maker, Holland Mechanics, is regarded as an early entrant into the Indian market. The company has started offering e-bike assembly solutions, focusing on the assembly line along with fork and frame solutions.
“We used to focus on wheel assembly only, but now we have expanded to rim-making machinery,” explains Puneet Madhav, Holland Mechanics’ South Asia director. Photo: Satnam Singh India’s Navyug Namdhari Enterprises is investing in production sites in Ludhiana to support domestic and international OEMs. Photo: NNE
Holland Mechanics has a firm grip on the south Asian market and controls a 95% majority in the bicycle wheel building solution market. The company recently supplied wheel building lines to all major bicycle manufacturers in the region like Asia Bike, DSI and Creative Cycles in Sri Lanka, and Meghna Cycle and M&U in Bangladesh. The Dutch company’s sales in the Indian market surged five-fold in 2020. “We are expecting sales on the same trajectory as the previous year leading us to expand our sales team in India,” Puneet Madhav, Holland Mechanics director, South Asia, told Bike Europe. “Earlier, we used to focus on wheel assembly only, but now we have expanded to rim-making machinery also,” said Madhav. Holland Mechanics has also upgraded its wheel building for e-wheel assembly and further expanded its application for traditional bikes.
E-bike assembly lines in India The firm has recently introduced the e-bike assembly line ‘Airline’ in the Indian market. Airline increases the automation on the factory floor as frames can now be moved 360 degrees on the X-Y-Z axis. “Airline is multi- directional and can be rotated on any axis. Ease of operation also improves efficiency level and increases productivity by 25%,” Madhav explains. Indian bicycle companies are now removing traditional lines and installing the new line because its application is more versatile in both bicycle and e-bike assembly. (SS)
NNE investing €12 million in e-bikes and alloy frames
High-tech e-bike testing lab in India
LUDHIANA, India – Prominent Indian bicycle parts manufacturer, Navyug Namdhari Enterprises (NNE), invested in a third e-bike and bicycle plant. A new alloy frame facility in Ludhiana is set to follow. The total investment in scaling up production is around €12 million.
“W e have invested €3.5 million in the bicycle site with an installed capacity to manufacture 600,000 units annually. The plant will produce 120,000 e-bikes and 480,000 conventional bikes yearly to cater to domestic and international markets,” explained NNE CEO, Harmanjit Singh. Established in 2005, NNE’s export market is spread over the US, Canada, Poland, Romania, Italy, South Africa, Sri Lanka, Taiwan and Australia. The bike firm plans to ship a majority (70%) of the production to its OEM clients spread over Europe and North America, while the remaining 30% would be supplied to the OEMs based in the home market. “Our production is entirely based on an OEM supply model, and the focus will remain on expanding the supplier base among OEMs based in the domestic and international market,” Singh confirms. This latest e-bike and bicycle facility is installed with an assembly line procured from Holland Mechanics and will produce bicycles with a starting price of €350. The new site houses the assembly line, paint shop and warehouse, while the two original component plants will supply parts like frames, handlebars, forks, rims, seat posts, etc. NNE has also finalised negotiations to supply e-bikes to the French retailer, Decathlon, for the Indian market. Regarding e-bike exports, Singh said, “We are in touch with OEMs based in the US, Canada and Europe for e-bike orders, and deliveries will start during Q1 of 2022.” NNE is also settingup a bicycle alloy frame site, which will likely start production in December 2022. On investment in the alloy frame unit, the company said, “We are investing about €8.5 million in the site to produce 600,000 alloy frames annually.” This is the company’s fourth site in Ludhiana. (SS)
LUDHIANA, India – The Indian bicycle industry is seeing a heavy shift to local sourcing of parts and components due to pandemic-induced supply chain problems. Investment in alloy frame production is also top of Sadem Industries’ agenda as it plans to boost its production capacity to meet the surging demand in the domestic bicycle market.
The spread of Covid-19 in the country emerged as a blessing in disguise for the Indian bicycle industry. When the pandemic gripped China, it triggered supply chain disruptions, and India also experienced the heat, forcing the domestic industry to localise. Historically, India has imported a sizeable amount of alloy bikes, but now Indian manufacturers are investing in alloy frame production due to supply issues faced during the pandemic. A large volume of these imported alloy frames came from China. Sadem Industries markets bicycles under the Kalvin brand and produces 3,000 adult bikes, 3,000 BMX and 2,000 kids bikes at its Doraha-based site on the outskirts of Ludhiana. The Kalvin range is produced in steel as well as alloy frames. The company is now focusing on expanding its alloy range. “We are planning to increase our bicycle production capacity by 25% in the next fiscal year as the market is gaining stability,” informed Neeraj Dhan“We are planning to increase our bicycle production capacity by 25% in the next fiscal year,” says Neeraj Dhanda, MD of Sadem Industries. Photo: Satnam Singh
da, MD of Sadem Industries, at the recently concluded CFOSE bicycle show in Ludhiana.
Low-cost production base in India “Now, the focus is on localisation of high-end aluminium components used in assembling premium bikes. The dependence on Chinese bicycle components is diminishing. Even in our range, more than 70% of bicycles parts used are now produced locally.” Increasing localisation and improving manufacturing practices would create a formidable low-cost production base in India, catering to the global bicycle industry scouting for an alternate sourcing base. Critical components like the gear system, disc brakes, suspension forks, alloy stem, etc., are still imported from Taiwan and China. “But there are efforts to produce alloy parts locally as many domestic producers are installing alloy plants in Ludhiana,” confirms Dhanda. As part of Sadem Industries’ expansion plans, a new paint plant has been installed at the Doraha site. The company is now using water-based metallic decals replaced with PVC stickers, which is popular among premium bicycles in Europe and the US. (SS) LUDHIANA, India – Indian bicycle manufacturers are increasingly expanding their product range by adding e-bikes to their portfolios. With this noticeable shift, a new lab with the latest testing infrastructure for the e-bike segment is being installed to enable them to meet international requirements.
“W e are setting up a lab for testing electrical parts and batteries as per EN15194 international standards for electrically powerassisted bikes. The lab is under construction, and it will likely become operational in 2022,” confirmed Amritpal Singh, assistant manager (Testing), R&D Centre for Bicycle & Sewing Machine The Punjab government-owned, UNDP/UNIDO-assisted Research & Development Centre for Bicycle and Sewing Machine is gearing up for the e-bike boom with the testing lab. Another lab is likely to be operational next year for the chemical testing of plastic and rubber parts used in bicycles to meet ROHS and REACH standards. Established in 1982, the R&D centre aims to assist and guide the bicycle industry to upgrade product quality at an affordable cost and remain competitive globally. A few years ago, a lab dedicated to photometric testing of bicycle reflex reflectors, sheets and tapes became operational. (SS)
‘European market is not easy because local brands are well established leaving no room for new entrants’ E-cargo and longtail specialist Yuba expands
ANNECY, France – Founded by Benjamin Sarrazin, the FrancoAmerican brand, Yuba, continues to expand in Europe and the United States. By the end of 2021, the company will have distributed around 8,000 to 10,000 units. “Despite supply chain difficulties, we expect to expand to 15,000 bikes in 2022,” says Sarrazin.
Michel de Chavanon
As a specialist in e-cargo bikes and longtails, Yuba has accelerated its growth in France and the United States and other European countries such as Germany, Belgium, and Norway.
European expansion “These countries are our main pillars. In Norway, our bicycles are perfectly suited to consumer expectations. Germany has become an important market for us because demand is very strong. We aim to consolidate our presence in Germany with our partner, E-Lastenrad,” explains Sarrazin. He is also looking closely at eastern European markets such as the Czech Republic and Slovenia. Sales are also growing in Belgium, but it is more complicated in the Netherlands. “This market is not easy because local brands are well established, leaving no room for new entrants,” he notes. Yuba is relying on its 2022 range, which has been produced in Taiwan and Vietnam, to improve sales. Due to supply chain constraints, the manufacturer has chosen not to make major changes to specifications while collaborating with Bosch and Shimano for the drive systems. “We will offer just one new platform, the Fast Track longtail with 20-inch wheels. It comes with a patented rear loading platform that folds out to increase storage space,” explains Sarrazin.
External partner “Until now, we have been handling this ourselves, but with the increase of our activities in a growing number of countries, it became necessary to look for an external partner,” he says. For Europe, the bikes arrive in Antwerp and Hamburg before being sent to warehouses in Heidelberg, Germany, and at the company’s European headquarters in Annecy, France. For the US, everything arrives and is stored in Los Angeles. With a strong presence in the US, the brand has announced several changes since 2020. Last year, Yuba wanted to accelerate its growth by handing over the daily operation of the American subsidiary to Pat Cunnane, who is the president of this subsidiary. Cunnane has The new longtail from Yuba is called the Fast Track. It will be available for the 2022 season.
Photo: Yuba/David Malacrida
also been appointed chief operating officer for the entire brand. He is a well-known face in the industry as he previously held the position of MD at Advanced Sports Enterprises group, which distributed brands like Fuji and Breezer. “When it comes to the bicycle industry as a whole, Pat Cunnane has a wealth of experience and knowledge that will help fuel Yuba’s plans for growth,” says Sarrazin. After his arrival, the brand also moved from the San Francisco area to the current location in San Juan Capistrano, between Los Angeles and San Diego. “Many brands like Bosch, Shimano, Pedego and Electra are located in this part of California,” explains Sarrazin. In the US, our brand is mainly distributed via IBDs. The bikes sold are then delivered to the 150 stores of the brand to be assembled by the technicians of the sales outlets.
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“E-bike companies are looking for more convenient supplies of lithium-ion batteries in Europe” Xener brings e-bike battery production to Italy
SAN VITO AL TAGLIAMENTO, Italy – Xener (a division of Atex Industries) holds a long track record in producing electronic components, like circuit boards, for countless applications. When market opportunities arose, Xener took the chance to start the production of modern lithium-ion batteries for mobility products.
For more than 50 years, the north Italian company has been working closely together with a wide variety of industry partners. The company already manufactures batteries for all kinds of mobility products, except cars, with a maximum of 5,000 Wh. As a result of the rapid development of the e-bike market, Xener decided to scale e-bike battery production capacity and invest in high-tech machinery. A long-term partnership with the World Cycling Forum is an important tool for Xener to expand its network in the e-bike industry.
Critical supply chain conditions “Following market studies, we decided to focus on product development and manufacturing for the city e-bike category,” explained Marco Seddio, CEO of Atex Industries. “Supply chain constraints caused by the Covid-19 crisis, in combination with the implementation of antidumping measures for e-bike and e-bike components, as well as a strong increase in demand, made several critical issues come up for the ebike supply chain in the Far East. These market conditions combined made many e-bike companies decide to look for more convenient and safer supplies of their lithium-ion batteries in Europe. Production in Italy by our division, Xener, is one of our strong assets.
Drive system as well as batteries While the production of batteries is operational and will be scaled in 2023, Xener is also developing new models and a drive system including motor, controller, and torque sensor. “Prototypes have been developed for this rapidly expanding market, and we expect to launch this drive train next year. Production could begin by the end of 2022. For our product development, we focused on offering an open system. We want to offer our customers only those parts they need and not only sell full systems. Our background in electronics provides us with the unique opportunity to offer product-specific or made-to-measure e-bike drives. For example, urban cycling in many countries requires only 60 Nm systems and not 90 Nm as a lot of systems offer today.” “Market studies made us decide to focus on the product development and manufacturing for the city e-bike category,” explained Marco Seddio, CEO of Atex Industries (r.) and Renzo Ruggieri, international strategic development. Photo: Bike Europe
Xener is working on the next step in e-bike drive systems: the integration of artificial intelligence. This would make it possible to integrate features such as predictive service. Now, Xener is building a cloud-based system to collect this BMS data which is communicated via Bluetooth. “This would allow for an all-new service level for e-bike manufacturers and riders,” says Seddio. Recycling Recycling is on top of the agenda for many battery manufacturers, including Xener. “We are already recycling batteries in compliance with EU regulation. We have a programme to re-use the properly working cells, so we can still revise 70-80% of the cells. However, disposal of batteries remains a challenge but, hopefully, we can announce a major breakthrough soon.”
Rossignol sells Felt to Pierer Mobility to concentrate on own brands Germany’s Corratec to open 300,000unit factory in Romania
ST-JEAN-DE-MOIRANS, France – Pierer Mobility Group is the new owner of the American bicycle brand, Felt. The Austrian company announced that the acquisition is part of Pierer’s strategy to “assume a leading global role in the bicycle sector”, the Austrian company announced. For Rossignol, interim ownership of the brand was just a way to gain bicycle competence.
“F elt offers us the opportunity to expand our bicycle portfolio and also strongly enter the North American market with an established, highperformance brand,” says Stefan Pierer, CEO of Pierer Mobility AG. This company has well-known motorcycle brands such as KTM, Husqvarna and GASGAS under its wing, but also established Pierer Bikes GmbH in 2019 after the take-over of German Pexco. Pierer Bikes GmbH already distributes bicycle brands such as Husqvarna E-Bicycles, GASGAS, and R Raymon. The acquisition of Felt Bicycles consists of all business components, including the Felt brand assets, the assets in Europe and North America, and the integration of the global workforce into Pierer E-Bikes GmbH’s team structure. Felt provides Pierer Mobility with the opportunity to expand its access in the North American market.
Photo: Felt
Rossignol Group a strategic entry into the world of cycling,” the French company wrote in a statement. It was part of the Rossignol Group’s development ambition, next to its activities in the skiing business, mountain sports and lifestyle, and the 365-day-a-year enjoyment. Following the Felt disinvestment, Rossignol will focus its bike activities under the Rossignol brand, mainly in the MTB and e-MTB categories. For the French skiing giant, it is more beneficial to communicate one brand only instead of a diverse brand portfolio. Felt gave Rossignol access to the bicycle industry, and a means to develop its own range. “As the Group embarks on this Rossignol- centric strategy, we will capitalise on our bike industry competence and a new dedicated team and organisation to expand into a fast-growing global market,” the company wrote in a statement. “Biking remains a strategic pillar for the Rossignol group. We will now concentrate all resources, efforts, and core activities on the Rossignol Bike brand.” RAUBLING, Germany – For several years, German bicycle manufacturer, Corratec, has been looking for an additional production location in Europe. The family-owned company has finally found a suitable site on the outskirts of the Romanian university town of Timis¸oara. In February 2022, the first series of Corratecbranded bicycles and e-bikes will be distributed from Romania.
Opening the new site in Romania is an important step in Correctec’s strategy as it aims to continue to expand on the global market. The company invested an undisclosed amount in acquiring an existing building of approximately 50,000 square metres and several annexes in Romania totalling 30,000 square metres. With the new facility, Corratec will add the production of 300,000 e-bike and bicycles to their existing factory in Raubling, Germany. The production of high-end custommade bikes will stay in Germany, alongside the complete road bike range and the assembly of high-quality e-bikes.
Less dependent The new factory will make Corratec less dependent on other suppliers. “For weeks and months, we have been experiencing what it means when you don’t have 100% control over your own production,” said Corratec founder The new Corratec facility is located in the outskirts of the Romanian city of Timis ¸ oara. Photo: Corratec
and CEO, Konrad Irlbacher. “To regain control over the production of our e-bikes and bicycles, assembly needs to take place in Europe again.” In addition, the city of Timis¸oara and its surrounding area, also known as ‘the Silicon Valley of Romania’, is in an optimal location. “Shortening the delivery routes alone enables us to save around 700 tonnes of CO2. The installed solar panels will provide the necessary electricity which makes it possible to produce our e-bikes and bicycles in an environmentally-friendly way.” At the time of writing, assembly lines and production machinery are being installed and tested in the new factory. The first assembly is scheduled to take place as early as February 2022. Corratec expects to create around 300 jobs over the next 24 months and, according to the current business plan, this should increase to at least 400 to a maximum of 600 employees. “We are bringing back important production from Asia,” Irlbacher commented. (JB)
EICMA looks to the future as e-bikes gain attention
MILAN, Italy – “Welcome back, EICMA. Today the future opens again,” remarked Pietro Meda, president of EICMA, in his inaugural address at the 78th International Two Wheels Exhibition. With over 820 brands and exhibitors from 36 countries present, the Italian show continues to increase its attention on e-bikes.
in their range. The event recognised that e-bikes had become a “fully-fledged phenomenon of the market”, the organisers said in a press release. “In 2020 alone, in Europe and the United Kingdom, e-bikes recorded an increase in sales of 52% in terms of market value, bringing it to €10.6 billion. While in Italy, with over 280,000 units sold, they have recorded a solid 44% growth in 2020 compared to 2019. The export and import of e-bikes from and into Italy have also grown compared to the previous year, respectively by 28% and 67%.”
Following the cancellation of the 2020 exhibition, EICMA is back in 2021, with five halls displaying present and future two-wheeled mobility solutions. A show with a history predominantly in electric motorcycles, scooters and motorbikes, now micro-mobility but, most of all, e-bikes, were more visible at this year’s event held from 23 to 28 November.
E-bike exhibitors E-bikes, which have shown double-digit growth in both the domestic and European markets over the past few years, are now finding “a natural stage at the annual event”, the organisers claim. Now occupying over 200 square metres, exhibitors present include the FIVE group whose range is completely developed and manufactured in Italy, as well as Armony, Bottecchia, Atala, Bafang Electric, Fantic, Polini, Vent, EBFEC, Rayvolt Bike, Bikel, V-ITA, Volta Motor, Bad Bike and other significant players in the world of mobility which have e-bike products
With 47% of the exhibitors across all two-wheel industries present this year coming from abroad, the event continues to hold its international appeal. A significant presence of Italian companies was also noticed by Paolo Magri, the chairman of the Italian trade association, ANCMA, who commented that this “confirms their leading position in Europe for production, sales, expertise and beauty. For the whole sector and for the national sector, which in Italy generates a total value of over €7 billion and offers employment to over 100,000 people, EICMA represents, in the first place, an occasion for unique communication, and opens up fruitful channels of dialogue with political deciders and stakeholders,” Magri remarked.
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Accell Group hires Francesca Gamboni as CSCO
HEERENVEEN, the Netherlands – Accell Group has appointed Francesca Gamboni as chief supply chain officer (CSCO) and member of the Board of Management. Following an extraordinary General Meeting of shareholders on 15 December, she will start in her new position on 1 February 2022.
Francesca Gaboni succeeds former CSCO Jeroen Both, a strong advocate of data sharing and a more intensive collaboration between suppliers and OEMs. He will leave Accell Group in December. Since 2016, Francesca has been senior vice president, global supply chain, for the automotive industry at Stellantis. Before joining Stellantis, Francesca held the position of director of corporate supply chain and operations, Nordic Region with L’Oreal. Following the formal appointment and as of 1 February 2022, the Board of Management will consist of three members, namely Ton Anbeek (CEO), Ruben Baldew (CFO) and Francesca Gamboni (CSCO).
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