SUMMER TRAINING REPORT SUBMITTED

TOWARDS THE PARTIAL FULFILLMENT OF

POST GRADUATE DEGREE IN MASTER IN
BUSINESS ADMINISTRATION

“COMPREHENSIVE RESEARCH &

ANALYSIS OF MARKETING
STRATEGIES OF ATLAS CYCLES
VERSUS COMPETITORS”

INDUSTRY GUIDE:
SUBMITTED BY:

Mr. Rahul Mathur

Sanjay Chopra
(Sales Manager)
MBA-IB (2009-2011)

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Roll No. : 0915270094

MANGALMAY INSTITUTE OF
MANAGEMANT AND TECHNOLOGY
GREATER NOIDA, UTTAR PRADESH

CERTIFICATE OF ORIGIN

This is to certify that Mr. SANJAY CHOPRA, a student of Post

Graduate Degree in MBA (2009-2011), Mangalmay Institute of
Technology And Management, Greater Noida has worked in the
ATLAS CYCLES (SAHIBABAD) LTD., under the able guidance
and supervision of Mr. RAHUL MATHUR, designation--Sales
Manager, ATLAS CYCLES (SAHIBABAD) LTD. The period for
which she was on training was for 8 weeks, starting from 19ND
June to 10ND Aug. This Summer Internship report has the
requisite standard for the partial fulfillment the Post Graduate
Degree in Master in Business Administration. To the best of our
knowledge no part of this report has been reproduced from any
other report and the contents are based on original research.

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 Signature
Signature
(Faculty Guide)
(Student)

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ACKNOWLEDGEMENT

For every opportunity may God be thanked.”

I express my sincere thanks to ATLAS CYCLES (SAHIBABAD) LTD.

for giving me an opportunity to work with them through this
summer project.

I express my sincere gratitude to my industry guide Mr. RAHUL

MATHUR Sales Manager, ATLAS CYCLES (SAHIBABAD) LTD., for his
able guidance, continuous support and cooperation throughout
my project, without which the present work would not have been
possible.

I would also like to thank the entire team of Marketing Deptt. for
the constant support and help in the successful completion of my
project.

Also, I am thankful to my faculty guide Mr. Sandeep Sharma of

my institute, for her continued guidance and invaluable
encouragement.

Signature
(Student)

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 CHAPTER 1

EXECUTIVE SUMMARY
1.0 EXECUTIVE SUMMARY

People don't care how much you know until they know
how much you care - about them and their problems."
Robert Cavett –

With an annual turnover of more than 12 million bicycles, the

bicycle industry is one of the most established industries in India.
It has raised the country's position to that of the second largest
bicycle manufacturer in the world, next only to China. India has
seen a tremendous increase in the number of bicycle
manufacturers and bicycle exporters in the recent past. Today,
the Indian bicycle manufacturing and bicycle spares industry is
well accepted and is also widely recognized for its quality
standards in international markets. There is a significant scope for
export of Indian bicycles, bicycle spare parts and bicycle
accessories. The approximate export and import figures of bicycle
for the year 2005-06 are Rs.111.68 crore and Rs. 20.06 crore,
respectively. The total production of all kinds of bicycles in the
organized sector has been 82.68 lakh numbers during the year
2005-06. The industry has been delicensed and is allowed 100 per
cent FDI under automatic approval.

Total number of units producing Bicycles in India

Total No. of Units in Bicycle 4125

and parts

No. of Units in Organized Sector 674

No. of Units in Small Scale Sector 3451

Concentrations of Units In India 5 Hero Honda, Tube Investments of

MIMT India, Atlas Cycles, Hamilton
SANJAY CHOPRA
Industries, RMI Cycles, National
Bicycle Corp. Of India.
Most bicycle components, spares and bicycle accessories in India,
except for free wheels and single piece bicycle hubs, are
manufactured by the Small Scale Sector (SSIs), while the large
scale units are permitted to manufacture bicycle frames, chains
and rims for captive consumption. Manufacture and export of
complete bicycles falls within the purview of the Organized
Sector. The Indian bicycle industry is currently in the midst of
making endeavors for enhanced and increased bicycle exports
since the scope for export of Indian manufactured bicycles in the
international market is significant. As per public reports the
present level of exports falls within the range of Rs. 150 crores.
This includes Bicycles, bicycle spare parts and bicycle
accessories.

A popular means of transportation in various areas of the world

today, the bicycle actually evolved from a little wooden horse with
a fixed front wheel, in France in the 1790's. This model was
improved in Germany in 1817, by Baron Karl von Drais. The model
for the modern bike was the "safety bicycle", invented in England
in the early 1880's, with a chain, sprocket driving rear wheel and
equal sized wheels. The years that followed saw the further
development of the bicycle with pneumatic tires, two and three
speed hub gears, and the dérailleur gears, which was the last
major innovation of bicycle design until the 1970's. Bicycles today
offer more than just the simple pleasure of cycling. From fitness
and trekking to racing, bicycles today cover a much broader
spectrum of activities than in the days of their predecessors.

To face the challenges of global competition, a thrust on quality

and constant innovation has been an integral part of the
philosophy of Atlas. This stress on detail has resulted in Atlas
taking a proud place amongst the well known brands in the world.

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Domestic success led to international acclaim. Today, Atlas cycles
as well as components are exported to over 35 countries, among
them advanced countries like Italy, Holland, U,K., Japan and
Australia.

Recognized as leaders of the bicycle world, it was the next step

for Atlas to start exporting expertise, lending know-how, and
setting up bicycle plants in several countries. A company inspired
by grit and nurtured by the will to excel. Atlas Cycle Industries
Ltd. is today racing along in the fast track of success. Inspite of
the fierce competition from TUBE INVESTMENTS, AVON, HERO,
HAMILTON, RMI INDUSTRIES, and many more the ATLAS CYCLES
(SAHIBABAD) LTD, has been able to a fair market share and is still
the leader for the bicycle industry. My main objective is to
determine the marketing strategies of Atlas Cycles and the
competitors and to do the comparative analysis, and target on the
potential customers and which model of that segment to follow up
and thereby suggesting the company to attack which segment.

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 8
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 Research Methodology

PRIMARY OBJECTIVE

The main objective of the project is

• To study the marketing strategies of Atlas Cycles and to

compare them with its competitors for the year 2008-09

SECONDARY OBJECTIVE

• To find consumer awareness about various Atlas Cycles

brands in the market.
• To study the perception of the consumers about Atlas
Cycles Brands vis-à-vis other brands.
• Forecasting its potential for the upcoming years.
• To determine those strategies which can be the potential
strength for the industry in the upcoming years and thereby
suggesting ways to increase the market share of the
company.

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PROBLEM DEFINITION

Over the last few years the bicycle segment has undergone a
major change which is creating direct impact on potential
markets. So in the process the company has experienced high
degree of fluctuations in their market share.

NULL HYPOTHESIS

Hypothesis 1 (H o) : Atlas performance in Fancy segment will

eventually help company to obtain No-1 position in the overall
bicycle segment.

Hypothesis 2(H o): Atlas provide complete satisfaction and

services to its customers.

ALTERNATE HYPOTHESIS

Hypothesis 1 (Ho): Atlas performance in Fancy segment will not

help company to obtain No-1 position in the overall bicycle
segment.

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Hypothesis 2(H o): Atlas do not provide complete satisfaction
and services to its customers.

RESEARCH DESIGN

“Research is common parlances refer to a search for

knowledge.”

Explanatory & Conclusive Research

As the term suggests, provides insights and comprehension of the

problem. We develop the hypothesis rather than testing it. This
type of research design is tentative and the type of research is
qualitative in nature. The outcome is that the findings are
followed by further research which has to be concluded. It aims at
exploring in order to find out trends and shifts in consumer
patronage pattern.

Explanatory research is often conducted because a problem has

not been clearly defined as yet, or its real scope is as yet unclear.
It allows the researcher to familiarize him/herself with the
problem or concept

to be studied, and perhaps generate hypotheses to be tested. It is

the initial research, before more conclusive research is
undertaken. Explanatory research helps determine the best
research design, data

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collection method and selection of subjects, and sometimes it
even concludes that the problem does not exist!

Another common reason for conducting explanatory research is to

test concepts before they are put in the marketplace, always a
very costly endeavor. In concept testing, consumers are provided
either with a written concept or a prototype for a new, revised or
repositioned product, service or strategy.

Explanatory research can be quite informal, relying on secondary

research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with
consumers, employees, management or competitors, and more
formal approaches through in-depth interviews, focus groups,
projective methods, case studies or pilot studies.

The results of explanatory research are not usually useful for

decision-making by themselves, but they can provide significant
insight into a given situation. Although the results of qualitative
research can give

some indication as to the “why”, “how” and “when” something

occurs, it cannot tell us “how often” or “how many”. In other
words, the results can neither be generalized; they are not
representative of the whole population being studied.

Conclusive Research is the type where one tests the hypothesis

and comes to a conclusion. This research is concrete and final.
The type is qualitative in nature. The findings are final and used
for decision making by the managers. Since this research
describes the market characteristics or phenomenon etc ,this is
descriptive in nature and here we test the hypothesis which has
already been formed in the explanatory research where job is to
collect the primary data.

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The research that has been undertaken here is a combination of
explanatory and conclusive research. In the first part of the
research, primary data has been collected from the market and
then a hypothesis has been formulated based on the data. In the
second part, the already developed hypothesis is tested with the
help of sampling and statistical tools and a conclusion is arrived
at.

Sample design

Sampling may be designed as the selection of some part of an

aggregate or totality on the basis of which judgment or
interference about the aggregate or totality is made. It is the
process of obtaining information about an entire population by
examining only a part of it in which generalizations or influences
are drawn on the samples about the parameters of populations
from which the samples are taken.

The study was restricted to Noida, Sahibabad, and Ghaziabad

regions only keeping in mind convenience to sample because of
accessibility lack of abundance of time and cost and because of
the fact that the population of these cities is composed of people
of diverse background income level etc., the sample were chosen
on the basis of convenience sampling.

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 The sample size taken for the purpose of study is 100. For this
purpose customers were contacted at their working places and
homes.

SCOPE OF THE STUDY

1) By undertaking this project we shall be able to understand the

total Bicycle Industry, their marketing
strategies and along with it the directly proportional Atlas Cycle,
a company which is making its
presence in the international markets.

2) How much is the market potential of the Atlas Company

3) How the company has to diversify itself and its strategies for
the new Business opportunity in this
sector.

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LIMITATIONS OF THE PROJECT

1) The survey was restricted to Noida, Gaziabad and Sahibabad

because of time and resource constraints. Therefore the
generality of the findings cannot be claimed until further
research has been carried out.

2) The location of study was selected keeping the convenience

factor in mind.

3) All the data has been collected from the net. So we can’t
verify the extent the data is true and whether it has been
put on the net by satisfying all the criteria which should be
done before putting it on net.

4) The situation in which person is questioned about routine

action is an artificial one at best due to the influence of
questioning process, respondents may furnish quite different
from facts.

5) The respondents are chosen through convenience.

6) It is also pretty hard to pursue customers and retailers to

share their findings as they are in hurry so possibility of bias
of the respondents may not be precluded.

7) The Software used for data analysis is SPSS , which being a

little cumbersome, some graphs have to be further
explained and clarified using the annexure.

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 16
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 CRITICAL REVIEW OF LITERATURE

With changing consumer preferences, the Indian Bicycle Industry

is booming increasingly competitive.

Consumer markets today are witnessing change at a rapidly not

seen before and offer new opportunities

and challenges. To stay competitive and growing, bicycle makers

have to bring out newer models at

affordable rates to cater to changing customer tastes at regular

intervals. Leading bicycle makers like

Atlas Cycles are endeavoring to blend the traditional and the

modern by offering affordable bicycles for

all age groups across various categories.

Consumer aspirations are fast changing. Even the age-old

sturdy roadster models are being given a

new look in a range of colors. Advertising and promotion have

become a necessity to stay ahead in the

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market. Celebrities have been signed on as brand ambassadors to
help in establishing an emotional

connection with customers.

Atlas cycles, for instance, has launched Samrat, an extra

sturdy bicycle for the masses in the

roadster segment. Noted film star Sunil Shetty, the brand

ambassador for Atlas roadster range of bicycle

features in the launch advertisement campaign of Samrat.

Especially designed for Orissa, North Bihar and

U.P. markets, the unique feature of Samrat is its center pull brake
system along with heavier side stands,

an extra coat of paint and extra strong tyres. These features will
give added support to the rider and help

withstand adverse weather conditions and would have increased

longevity.

In present Scenario, Atlas Cycles has always taken lead and acted
as a change agent in Indian panorama.

Upto the decades of eighties leather saddle was liked and used in
many of the Indian states. In the last

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decade’s availability of leather started seriously shrinking
affecting bicycle sale adversely. At the point of

time the late President of Atlas Cycles Mr B D Kapur took lead and
introduced PVC saddle top as

substitute of leather. Though, initially it met with resistance but

by today PVC saddle top almost

substituted leather saddle effectively. Atlas Cycles is highly pro-

active towards environment conservation

& preservation. Atlas Cycles, Sonepat has been participating and

representing in United Nations

Organisation at different platforms of CleanerProduction, Global

Compact, etc to raise Indian bicycle

industries concerns at international level.

The market growth in cycle industry is seeing an all time low in

recent times. Hit badly by increase in

price rise of steel and raw material, it has become difficult for
masses to cope with general price

increase in Roadster segment, which is normally a mode of

conveyance for consumer.

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Keeping in view the changing trend the company is reviewing its
approach to consolidate its position in

the fancy/sports segment of bicycles. The series is to targeted

towards age group of 3-5 years, 6-10

years and 12-15 years of kids and youth respectively. This has
been done keeping in mind the radical

change the bicycle industry is going through. The research &

development of Atlas is working to cope

up for this big shift from roadster to fancy segment. Atlas is also
looking forward for ‘backward

integration’ for its steel tube plant based in Gurgaon and has
plans to enter other allied field of bicycles.

With major globalization taking place, Atlas is also planning to

diversify into other FMCG products for

which talks are in advance stages for international tie ups. Hence
in future, Atlas apart from efforts to

bring its turnover to 600 crore by March 2007, would also focus to
gain momentum, work on fiscal

consolidation & doubling growth prospect in next two years. The

expansion is aimed to be a

Multiproduct Company.

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Atlas Cycles Sahibabad registered a 70.59% growth in net profit
to Rs 5.8 million for the quarter ended

June 2007 from a profit of Rs 3.4 million for the quarter ended
June 2006. The newer fancy bicycle

segment has also managed to create a strong presence in the

market with a high growth rate of over

15%. Newer models in arrange of attractive designs and colors

catering primarily to middle class

youngsters in schools and colleges are being introduced in this

segment. These include Stud , Tank,

Nucleus, Inferno, centre Shox, Formula-I , ,Velocity, Vogue,

Pacific(Sr. & Jr), Double impact, Turbo, Dove,

Spice-G, Swan, Monalisa and Minica.

In addition to the above, the children’s bicycle segment has

also shown upward trends in terms of

sales and popularity. The opportunities within this segment are

tremendous and it is fast becoming one of

the key focus areas of bicycle majors. Targeted advertising

campaigns are also being developed to

attract the immediate attention of children.

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Aiming to further increase its presence in the children’s bicycle
segment, Atlas Cycles (Sahibabad) Ltd.,

India’s leading bicycle maker has recently launched its new range
of children’s bicycles-Atlas Lil Devils

Series. Affordably priced at Rs 1000/- to 1200/-, the series

includes four models – Atlas Chunmun , Atlas

Simba, Atlas Crazy Toons and Atlas Beetle. The bicycles are
available in a host of attractive colors and

designs.

With all these changes, the Industry seems to be coming of

age with changing consumer tastes.

Fuelled by high levels if media exposure. Today’s consumers

young or old seem to accept change more

easily than they previously did. More dispensable income with the
younger population is driving most

business. The challenge for all of us would be to keep cycling and

bicycles firmly in consumer’s minds and

consideration set as not just a poor man’s vehicle but as desirable

companion for all age groups. The road

ahead is long but with increased focus on R&D , machinery and

distribution channel upgradation with

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better image management it won’t be long before India will make
a mark for itself in the fancy bicycle

segment in the international markets.

Indian bicycle industry

• Is the second largest bicycle producer of the world

• Is allowed 100 per cent FDI under automatic approval.

• Is also widely recognized for its quality standards in the

international market.

The future growth drivers:

• Higher GDP Growth

• Increasing Road Development

• Conservation of fuel and money if gasoline prices rise.

• Export will continue to be the biggest growth sector.

• Replacement of aging four wheelers

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 • Growing concept of second vehicle in urban areas.

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 25
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 INDUSTRY AND COMPANY

PROFILE

INDUSTRY PROFILE

The global bicycle industry, including bicycles, parts and

accessories, is estimated to have total retail

sales in excess of $20 billion. The bicycle manufacturing segment

of the industry produces approximately

100 million units per annum. (Source: Derby Cycle Corporation

annual accounts, April 2001).

In 2000, world production of bicycles exceeded 101 million units.

41 million cars were produced

worldwide. (Source: http://www.earth-policy.org )

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As recently as 1965, world production of cars and bikes was
essentially the same, with each at nearly 20

million, but as of 2003 bike production had climbed to over 100

million per year compared with 42 million

cars. Bicycle production was 105 million units globally in 2004, a

1.5% increase over 2003 (WorldWatch

Institute).

The world produced an estimated 130 million bicycles in 2007—

more than twice the 52 million cars

produced. Bicycle and car production tracked each other closely

in the mid-to-late 1960s, but bike output

separated sharply from that of cars in 1970, beginning its steep

climb to 105 million in 1988. Following a

slowdown between 1989 and 2001, bike production has regained

steam, increasing in each of the last six

years. Much of the recent growth has been driven by the rise in
electric, or “e-bike” production, which

has doubled since 2004 to 21 million units in 2007. Overall, since

1970, bicycle output has nearly

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quadrupled, while car production has roughly doubled. (Source:
http://www.earth-policy.org )

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From 2006 U.S. Census data, as reported at Go Bike Boulder.

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In a survey of larger cities, Portland, OR had the highest

Total No. of Units in Bicycle and parts 4125

No. of Units in Organised sector 674

No. of Units in Small Scale sector 3451

Concentrations of Units in India

Most of the factories manufacturing

bicycles and parts are located in Punjab
and Tamil Nadu. Major companies in this
industry are Hero Honda, Tube Investment
of India, Atlas Cycles, Hamilton Industries,
R M I Cycles, National Bicycle Corp. of
India

percentage of bike commuters at 3.5 percent. Nationwide, the

share of commuters biking to work in 2006 was 0.4%.

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In the chart, "SOV" means Single Occupant Vehicle.

Bicycles and carriages which fall under the codes 8713 attract a
total import duty of 35.2 per cent. This

includes 30 per cent basic duty and four per cent special
additional duty. There is no additional duty.

However, total import duty on bicycle parts, which comes under

the HS code 8712 and 871491 to 871494, is

higher at 40.61 per cent. This is because of the 16 per cent

additional duty imposed on these items, in

addition to the 30 per cent basic duty and four per cent special
additional duty. The bicycle industry is

mostly in small scale sector since most of the components parts

except free wheels and single piece

hubs are reserves for this sector. Large industries are permitted
to manufacture bicycle frames, chains

and rims for captive consumption only.

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MORE than two out of five Indian households own a bicycle. That's
a total of more than 83 million bicycles

on the road. Assuming an average bicycle is made to last for

seven years, this would mean that

replacement demand alone would add up to around 12 million

bicycles each year.

The proportion of households owning a bicycle varies from a high

of around 70 per cent for Punjab and UP

to a low of around 30 per cent for Goa, Karnataka, Maharashtra,

Kerala and J&K.

A Look at the Bicycle Industry’s Vital Statistics

The U.S. bicycle industry was a $5.6 billion industry in 2009,

including the retail value of bicycles, related

parts, and accessories through all channels of distribution,

according to research funded by the National

Sporting Goods Association. For comparison purposes, we project

the industry at $5.3 billion in 2002,

$5.4 billion in 2003, $5.8 billion in 2004, $6.1 billion in 2005 (an
all-time high), $5.8 billion in 2006, $6.0

billion in 2007 and $6.0 billion in 2008. The recession of 2009

definitely had an impact on bicycle sales

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with an overall decline approaching 20% from the previous
year.Bicycle unit sales (for all bicycles, and

for those with 20-in. wheels and above) for the U.S., including
both the dealer and mass merchant

channels are as follows:

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Year Bicycles Sold (Millions) 20" and Bicycles Sold (Millions), all wheel
above sizes
wheel sizes
2009 10.2* 14.9*
2008 13.4* 18.5*
2007 12.8* 18.2*
2006 12.7* 18.2*
2005 14.0* 19.8*
2004 13.0* 18.3*
2003 12.9* 18.5*
2002 13.6* 19.5*
2001 11.3* 16.7*
2000 11.9* 20.9*
1999 11.6* 17.5*
1998 11.1* 15.8*
1997 11.0* 15.2*
1996 10.9 15.4
1995 12 16.1
1994 12.5 16.7
1993 13 16.8
1992 11.6 15.3
1991 11.6
1990 10.8
1989 10.7
1988 9.9
1987 12.6
1986 12.3
1985 11.4
1984 10.1
1983 9
1982 6.8
1981 8.9
...1973 15.2 (record high)

Source: Bicycle Manufacturers Association, and apparent market

consumption based on U.S. Department

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of Commerce import statistics, and estimates of domestic market
production by National Bicycle Dealers

Association and Gluskin Townley Group, LLC.

* indicates projected figures

DISTRIBUTION CHANNELS

Bicycle sales are accomplished in this country through five

primary and distinct channels of distribution

— the specialty bicycle retailer, the mass merchant, full-line

sporting goods stores, outdoor specialty

stores, and "other," which is comprised of a mixture of retailers

(including Internet sales delivered by

mail).

Department, discount and toy stores sell mostly price-oriented

products. Approximately 73% of bicycle

units were sold through the mass merchant channel in 2009, but
this represented 32% of the dollars due

to the average selling price of $78. This channel's market share

trend line was down from 2008.

The approximately 4,200 specialty bicycle retailers feature higher

quality merchandise, and also rely on

adding value through added custom services such as bike fitting,

expert assembly and repair. This
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channel commanded approximately 18% of the bicycle market in
terms of unit sales in 2009, but 50% of

the dollars, a dominant dollar share. Dealer price points generally

start at around $200, with the average

at approximately $500, though prices can range into the

thousands. While the number of specialty bicycle

stores has declined in recent years due to consolidation, they are

responsible for approximately the same

amount of business through these fewer (but larger) stores. This

is the only distribution channel that

maintained or increased average retail bicycle selling price in

recent years, although all categories

experienced price increases in 2008 due to the weak dollar. This

channel's overall share was slightly up

in 2009 compared to 2008.

Chain sporting goods stores sold approximately 4% of the bicycles

in 2009, and 5% of the dollars, at an

average price of $235. These are merchants that fall somewhere

between mass merchant and bicycle

dealers on the spectrum, and include stores such as The Sports

Authority, Champs Sports,

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MIMT SANJAY CHOPRA
JumboSports, Sportmart and Big 5. This channel's overall market
share was down in 2009 compared to 2008.

Outdoor specialty retailers sold approximately 2% of the bicycles

in 2009, representing 5.8% of dollars

and an average retail selling price of $510. This channel is being

broken out separately this year for the

first time so there is no trend line.

The "other" category sold 3% of the units, representing 5.9% of

the dollars, with an average price of

$350.

Specialty bike dealers commanded the majority of parts and

accessories sales, and virtually 100% of the

service market. They dominate the market in bicycles selling for

$250 and up.

CYCLING PARTICIPATION

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38.1 million Americans age seven and older were estimated to
have ridden a bicycle six times or more in

2009, according to the National Sporting Goods Association. The

NSGA has revised its numbers for

several previous years with the new numbers showing

participation of 37.4 million in 2007 and 38.7 in

2008. The peak participation year was 1995, with 56.3 million
participants. It should be noted that the age

limit on this number eliminates millions of young people who ride

bicycles with wheel sizes 19" and under.

Cycling is often cited as the seventh most popular recreational

activity in the U.S., behind exercise

walking, swimming, camping, fishing, exercising with equipment

and bowling.

Bicycles and related products appeal primarily to a recreation

market in the United States. NBDA

research conducted by the Bicycle Market Research Institute in

2006 reported that 73% of adult cyclists

rode for recreation, 53% for fitness, 10% for commuting, 8%

racing and 6% sport. The figures add up to

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more than 100% because some ride in multiple ways.

Riding for transportation is a growing market that is important for

the industry because it establishes

cycling as a legitimate part of the nation’s transportation mix. The

industry, as well as cyclists across the

country, have strongly advocated for streets and roads to be

made more friendly to bicyclists and

pedestrians in recent years. Bicycles are important not only as

vehicles to make an entire trip to work,

for instance, but also as connectors for short trips from mass
transit. Several cities and companies have

instituted bike sharing programs that allow people to borrow a

bike for transportation and return it later.

Bicycles are clearly much more than toys, and their combination
of utility and recreation use continues to

justify support for cycling-friendly roads, trails and related

facilities. Cycling facilities construction is at

an all-time high and both pedestrian and bicycle facilities have

received an increasing level of support

from the government in recent years. Better facilities continue to

be an important factor in the industry’s

growth, as bicycles continue to provide Americans with a clean

and

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MIMT SANJAY CHOPRA
healthy transportation alternative that is both practical and
affordable. Bicycle use continues to be a

potential solution for improving peoples' health, as well as

contributing to more livable communities.

RECENT HISTORY: OVERVIEW

The industry’s high point, in terms of unit sales, was the so-called
"bike boom" in the 1970s. The boom

ended suddenly when the industry reached a rapid saturation

point and did not have breadth of product

choices to sustain sales levels.

Today, the industry has a much stronger foundation, with an

estimated 2,000 companies involved in

manufacturing and distributing cycling products to retailers, and

approximately 150 different bicycle

brand names to choose from. A wider variety of product is being

sold to a wider range of consumers than

ever before. Since the "boom," no part of the bicycle has

remained unchanged, with fundamental

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improvements in design and materials being the norm throughout
the industry.

Today’s quality bicycles are more comfortable than ever before,

the components more function-specific

and reliable, and new and exciting features are introduced

regularly. This allows professional retailers

many options to match the right bike to each consumer — male

or female, big or little, frequent or

infrequent rider, status-conscious or not.

The success story of the mountain bike has been the focus of
much of the specialty industry in recent

years. The category has apparently matured, however, and it

represented 28.5% of all bicycles sold in

the year 2008 by specialty bicycle stores, according to estimates

from the NBDA (representing bicycle

stores, not mass merchants). This figure was stable from the
years 2006 and 2007, and down from the

high point of approximately 60% in the boom years of the mid

1980s. However, mountain bikes continue to

be the largest single bicycle category for specialty bicycle stores.

The decline may also be somewhat

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misleading, because the "comfort bike" category could actually be
considered a modification of the

mountain bike, and are comparable in many ways to low-end

mountain bikes. "Comfort" bicycles look a lot

like mountain bikes, but feature soft saddles, more upright

seating position and easier gearing than the

traditional mountain bike. The key growth area in 2008 was the

Hybrid/Cross category. These bikes are utility-oriented and the

increase is being attributed primarily to

consumer reaction to high gas prices mid-year as they turned to

the bicycle in order to consumer the

more costly gasoline. Retailers also reported an increase in

service and repair work during this period as

people were bringing bicycles they already owned out of storage

and wanted to make them road-worthy.

The unit sales trends by category are below.

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Specialty Bicycle Sales By Year, Units, 2006-2009

Categor 2006 2007 2008 2009

y Unit % Unit % Unit % Unit %
Mountai
28.5 28.0 28.5 27.8
n
Comfort 14.0 15.0 12.0 10.3
Hybrid/C
15.0 16.5 19.0 20.4
ross
Cruiser 6.0 6.5 4.0 3.3
Road/70
17.0 15.0 13.0 14.9
0C
Youth 16.5 16.5 21.5 21.3
Other 3.0 2.5 2.0 1.8

Source: U.S. Commerce Department statistics, Gluskin Townley

Group estimates.
Source: U.S. Commerce Department statistics, Gluskin Townley
Group estimates

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Specialty Bicycle Sales By Year, Dollars, 2002-2004

2002 2003 2004 2004

Category Retail $ Retail Retail Avg.
(%) $ $ Price
Mountain
26.56 26.24 25.61 $391.31
Front Susp.
Comfort 18.03 14.44 11.70 $332.23
Road/700C 16.40 20.79 28.32 $1,152.68
Hybrid/Cros
9.89 12.87 10.95 $386.48
s
Mountain
9.67 8.87 9.57 $1,319.97
Full Susp.
Freestyle 5.56 4.42 3.78 $226.36
Mountain
3.12 1.64 0.41 $220.21
No Susp.
Youth 20" 2.60 2.41 2.24 $171.04
Youth 24" 2.51 2.75 2.23 $242.78
BMX 1.98 1.38 0.97 $204.67
Youth 19"
1.76 1.72 1.36 $126.72
and below
Cruiser 1.57 1.90 2.38 $270.22

Source: National Bicycle Dealers Association Retail Data Capture

Program. Tracks sales of top 19 bicycle brands through panel of
retailers. Year 2005 dollar projections are not available.

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 Bicycle Production of Selected Countries, in
Millions

1986-2000

199 199 199 199 199 199 199 199 199 200
Country 1986 1990
1 2 3 4 5 6 7 8 9 0
India 5.3 8.4 8.8 9.0 9.9 10.5 11.5 11.3 11.0 10.5 11.0 11.0
China 41.0 31.9 36.8 40.3 41.0 42.0 41.0 38.0 30.0 23.1 42.7 52.2
France N/A 1.5 1.2 1.0 1.0 1.3 1.3 1.3 1.3 1.6 1.8 1.9
Germany 2.9 3.9 4.9 4.6 3.5 3.2 2.9 2.8 3.2 3.2 3.2 3.2
Indonesia 2.0 2.0 2.0 2.2 2.5 2.8 3.0 2.3 3.0 2.8 2.6 N/A
Italy 1.6 3.5 3.6 4.1 5.2 5.8 5.3 4.0 4.0 3.0 3.3 3.2
Japan 7.8 8.0 7.5 7.3 6.9 6.7 6.6 6.1 6.0 5.9 5.6 4.7
Korea 2.6 1.5 1.5 1.3 1.1 1.2 N/A 0.9 0.8 0.6 0.6 N/A
Malaysia N/A 0.3 0.4 0.6 0.7 0.8 0.8 0.5 0.8 0.7 0.8 N/A

9.9 6.8 7.7 7.5 7.9 9.2 9.7 7.4 11.9 10.1 8.3 7.5
Taiwan
Thailand 1.0 0.7 0.8 1.0 1.0 1.1 1.8 1.5 1.8 1.6 1.5 N/A
United
1.2 1.3 1.2 1.2 1.1 1.2 1.2 1.2 1.3 1.2 1.3 1.2
Kingdom
United
5.8 5.6 7.6 8.9 7.7 7.3 8.8 8.0 6.0 2.5 1.7 1.1
States
Sources: Bicycle Retailer & Industry News, Cycle Press, European Bicycle
Manufacturers Association, Japan Bicycle Promotion Institute,
and Bike Europe

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 BICYCLEPRODUCTIONININDIA(inMln)1986-2000

12
P
10
R
O 8
D
U 6 11.5 11.3
10.5 11 10.5 11 11
C 9 9.9
8.4 8.8
T 4
I 5.3
O 2
N
0
1986 1991 1993 1995 1997 1999
YEARS

Sources: Bicycle Retailer & Industry News, Cycle Press, European

Bicycle Manufacturers Association, Japan Bicycle Promotion
Institute, and Bike Europe

China manufactured a record 52 million bicycles in 2000—over

half the world total. Nearly two thirds of

these were exported, with 17 million going to the United States.

The United States itself produced just over

1 million bikes, down sharply from the 1995 output of nearly 9

million. With over 43 million cyclists, the

United States is the world's largest bicycle export market, with

imports meeting 97 percent of demand.

The European Union, led by Germany, produced some 12 million

bicycles in 2000. Italy closely trails

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MIMT SANJAY CHOPRA
German production of 3.2 million bicycles, although cycle sales in
Germany reached 5.3 million in 2000, compared with 1.6 million
units in Italy.

India produced more than 11 million bicycles. Most of these are

ridden domestically or shipped to Africa.

Africa is a potentially large bicycle market, but recently sales

have declined in many countries despite the

continued need for low-cost, non-motorized transportation.

In Copenhagen, one third of the population commutes to work by

bicycle. By 2005, Copenhagen's

innovative City Bike program will provide 3,000 bicycles for free
use within the city. The city's total cycle

fleet is expected to grow, as city planners intend to increase

already high car parking fees by 3 percent

annually for 15 years, impose high fuel taxes and vehicle

registration costs, and concentrate future

development around rail lines.

Stockholm, one of the world's wealthiest cities, has seen car use
decline in recent decades. There, urban

development is concentrated around city centers, allowing for

greater public transportation efficiency.

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MIMT SANJAY CHOPRA
Rail and buses are linked with pedestrian and bicycle-oriented
routes. In all of Sweden's urban areas, 1

out of every 10 trips is taken by bicycle, about the same number

by public transit, and almost 40 percent

on foot. Just 36 percent of trips are taken by car, a low for Europe.
In the Netherlands, bicycles are used for 27 percent of all trips.

Yet with the world automobile fleet climbing to over 530 million,
bicycles are losing out to a growing

collection of motorized vehicles in some parts of the world. In

Beijing 10 years ago, 60 percent of all trips

were made on bicycle. Now that incomes have risen, residents

have begun to favor the car, which is

viewed as a symbol of progress, and bike trips have fallen to 40

percent. In Shanghai, where many major

streets have recently been closed to bicycles during rush hour,

the share of trips made by bike has

dropped to 20 percent. The Shanghai government reportedly has

plans to ban bicycles altogether from

the city center by 2010.

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In the United States and Canada, where development is much less
concentrated, 84 and 74 percent of

trips are made by car respectively. In both countries, only about

10 percent of trips are pedestrian, and

just 1 percent is by bicycle. Many residents use bicycles for

recreation, not for transit.

Cities at risk of being overrun by polluting, land-hungry

automobiles could benefit by ensuring that

bicycles receive consideration in transportation planning and

urban development schemes. Tax incentives

can encourage development in areas close to mass transit, and

trains and buses can be equipped to

carry bicycles. Making streets and pathways safer and accessible

to cyclists will encourage more people

to pedal to work and to use bikes for recreation.

Annual world bicycle production has grown to more than double

automobile production since the mid-

twentieth century, when the two nearly coincided. The bicycle is

an affordable, space-efficient, low-

maintenance method of personal transportation, and its

usefulness promises future growth in the

industry.

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 The Worldwide Bicycle Market, in Millions,
1997-1998

Production Imports Exports

Country 1997 1998 1997 1998 1997 1998
India 11.00 10.50 N/A N/A 2.50 2.00
China 30.00 23.10 N/A N/A 14.4 17.6
Taiwan 9.40 10.50 N/A N/A 8.95 9.55
India 11.00 10.50 N/A N/A 2.50 2.00
Europeon Union 11.30 10.69 5.07 4.90 1.31 0.93
U.S.A 6.20 2.50 9.80 13.90 0.28 0.21
Japan 5.98 5.72 1.6 1.84 0.21 0.32
Indonesia 3.00 2.80 N/A N/A 0.13 0.10
Germany 2.82 3.0 1.77 1.92 0.3 0.42
Thailand 1.80 1.60 N/A N/A 0.18 0.80
France 1.29 0.92 1.15 1.14 N/A 0.23
Malaysia 0.80 0.70 N/A N/A 0.05 0.04
Korea 0.76 0.65 N/A N/A 0.11 0.12
Sources: Japan Bicycle Promotion Institute, The Bicycle
Council, U.S. Department of Commerce, European Bicycle
Manufacturers Association, Cycle Press, Bike Europe,
Bicycle Retailer & Industry News.

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 Worldwide Bicycle Production (in Mln) 1986-2000

120
P
R 100 98
105
99 102 102 105 106 98 101
95 92 92 93
O
84
D 80 76
U
60
C
T 40
I
O 20
N
0
1986 1988 1990 1992 1994 1996 1998 2000
Years

Sources: Compiled by Worldwatch Institute, Vital Signs 2002

(New York: W.W. Norton &

Company, 2002, Bicycle Cults.

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Top 12 Sources of Bicycle Imports into the Europeon Union
in 1998, 1997 and 1996 (In Thousand of Units)

Country 1998 1997 1996

India 328 379 383
Sources: Taiwan 2725 2699 2444
European Poland 403 415 335
Bicycle Czech Rep 361 358 288
Philippines 178 127 N/A
Vietnam 134 46 N/A
U.S.A. 124 149 118
Lithuania 116 122 88
Turkey 96 156 N/A
Thailand 64 160 123
Indonesia 58 74 65
Sri Lanka 49 31 N/A
Others 262 275 N/A
Total 4898 4991 4471
Manufacturers Association.

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 Bicycles Ownership in Selected Countries
1996-1997

Country Bikes Total Bikes Per Person

India* 450,000,00 0.06
China** 450,000,000 2.6
U.S.A*** 100,000,000 2.6
Japan 72,740,000 1.7
Germany 63,000,000 1.7
Brazil 40,000,000 4.0
Italy 26,500,000 2.2
Indonesia 20,000,000 9.6
Netherlands 16,500,000 1.0
South Korea 6,500,000 2.6
Switzerland 3,800,000 1.8

*1992 Figures. **1995 Figures, ***1985-1988 Figures.

Sources::Cycle Press and Maria Lowe, The Bicycle: Vehilce for a Small Planet, Worldwatch Institute,
1989, p. 11-12;Motor Vehicle Manufacturers Association, Facts and Figures, Detroit, MI: various
editions;.

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MIMT SANJAY CHOPRA
How many bicycles are there in the world?

It is estimated that more than a billion bicycles are present in the

world, with nearly half of them in China. Below is a table with the
major countries:

Country Quantity Year

China 450,000,000 1992

USA 100,000,000 1995
Japan 72,540,000 1996
Germany 62,000,000 1996
India 30,800,000 1990
Indonesia 22,300,000 1982
Italy 23,000,000 1995
UK 20,000,000 1995
France 20,000,000 1995
Brazil 40,000,000 1996
Netherlands 16,500,000 2000
Canada 10,150,000 1992
Spain 6,950,000 1995
Sweden 6,000,000 1995
South Korea 6,500,000 1985
Mexico 6,000,000 1986
Belgium 5,200,000 1995
Rumania 5,000,000 1995
Denmark 4,500,000 1995
Switzerland 3,800,000 1996

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Hungary 3,500,000 1995
Australia 3,300,000
1995
Finland 3,250,000 1995
Norway 3,000,000 1995

POSITIVE TREND IN EXPORTS:-

India's Exports of Bicycle & Bicycle Parts

2000- 2001- 2002-

SI.No Product
2001 2002 2003
1 Bicycle free-wheels 3.544 3.534
2 Bicycle hubs 3.5427 5.7538
3 Bicycle rims 5.7753 4.1902
4 Bicycle spokes 3.9608 5.1248

Bicycles and other cycles (including delivery tricycles) not

5 26.854 34.0979 28.4801
motorised

6 Bicycles and parts 39.3436 133.0237 131.7516

7 Bicycles, not motororised 26.4861 33.8126 28.1771
Brakes, incl. coaster braking hubs & hub brakes & parts
8 4.6245 3.412 3.2111
thereof
9 Frames, forks & parts thereof 7.8316 8.7719 7.4479
Hubs, other than coaster braking hubs and hub brakes,
10 46.7238 50.1123
and free-wheel sprocket-wheels
11 Invalid carriages not mechanically propelled 0.0062
12 0.0335 0.0554 0.0117
Invalid carriages, whether or not motorised or otherwise
mechanically propelled

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13
Other invalid carriages 0.0273 0.0554 0.0117

14 Others 30.2266 33.1735

15 Others 39.6371 40.8244
Others (cycles, rickshaws, delivery cyles, cycles,
16 0.3679 0.2853 0.303
tricycles, toy bicycles, etc), not motorized
17 Wheel, rims and spokes 39.9627 42.4885
Currency: US $ Million Source: DGCIS

MAJOR PLAYERS IN THE INDIAN BICYCLE INDUSTRY:-

TUBE INVESTMENTS OF INDIA LIMITED:-

TI Cycles of India, one of the leading bicycle manufacturers in

India, started in 1949, has been at the

forefront of innovations and is a pioneer in the market of cycles.

TI cycles are the makers of country’s

most famous brands like Hercules, BSA and Philips cycles. The
company’s vision is to be a worldwide

leader in cycling and cycling solutions by “instilling the pride of

ownership in the customers”.

Brands:

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MIMT SANJAY CHOPRA
 - the flag ship brand of TI cycles portfolio, this brand of
ours is still as young as ever.

Hercules stands for a unique pride of possession - anchored in the

time-tested values of heroism and

integrity, to which the brand’s customers subscribe in their own

lives.

- Another Flagship Brand of TI cycles, BSA stands for

Birmingham Small Arms. It signifies the joy of
cycling; fun and comfort go hand in hand with BSA. BSA today is
an intrinsic part of the Indian family with cycles for everyone -
kids, teens and adults.

Certificates: Certified with ISO 9002 and ISO 14001.

Exports: TI Cycles is an exporter to many regions across the

global - Europe, South East Asia and Africa; being some of them.

AVON BICYCLES:

Avon Cycles came into being in 1952 when the first batch of 250
bicycles rolled out of its plant. AVON is

the only group anywhere in the world with full backward

integration. They have facilities for making

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MIMT SANJAY CHOPRA
almost all the parts, including Steel Balls needed for their
Bicycles. This places them a cut above the rest

when we talk of quality born of work culture. They did not venture
into Tyre and Tubes, these being in a

different discipline, altogether. To meet their expanding

requirement of raw materials, they

added facilities for making Steel Strips, Steel Tubes and Hot
Rolled Steel, achieving full backward

integration, unmatched and unequalled anywhere else.

HERO CYCLES:

Hero Group ranks amongst the Top 10 Indian Business Houses

comprising 20 companies, with an

estimated turnover of US$ 3.2 billion during the fiscal year 2005-
2006. Hero Cycles Limited is a Guinness

Book Record holder since 1986 as the world's largest

manufacturer of bicycles, with annual sales volume

of 5 million bicycles in FY 2006. World Bank has acclaimed Hero

Cycles as a role model in vendor

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MIMT SANJAY CHOPRA
development based on a world-wide study. From a modest
beginning of mere 639 bicycles in the year

1956, Hero Cycles products over 18500 cycles a day today, the
highest in global reckoning. With the 48%

share of the Indian market and with more than Rs. 10000 Crore
turnover annually., it is one of the largest

bicycle manufacturer.

ATLAS CYCLES

Established more than 5 decades ago under the pioneering efforts

of Late Rai Bahadur Shri Janki Das

Kapur, the company begins its activities by manufacturing

bicycles saddles as a small business

enterprise. In the very first year, 12000 cycles were rolled out.
Since then, Atlas has grown and achieved

the distinction of becoming one of the largest manufactures of

quality and strong brand presence, it has

emerged as a natural choice of customer. Today as the India’s top

cycle brand Atlas –continues to

maintain an enviable status in India and abroad. Atlas is proud to

be one of the top bicycle producing

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MIMT SANJAY CHOPRA
companies in the world, with a capacity to produce 4 million
bicycles per year. Atlas has earned not only

brand loyalty but also millions of satisfied customers in India and

abroad. This is corroborated by the fact

that Atlas Bicycles are being used in over 85 countries.

OUTLOOK FOR THE FUTURE:-

The outlook for the future in bicycles is positive, though stability is

the story of the recent past. The

bicycle industry is a seasonal business that can be impacted by

unusual weather, as well as an industry

that relies on discretionary spending impacted by economic

conditions. Industry sales of bicycles seem to

be stable at over 15 million bicycle units annually, plus parts,

accessories and service, which historically

is a very healthy number for the industry. National trends related

to the green movement, environmental

sustainability, the need to address health problems related to

inactivity, and higher gas prices also bode

well for the future of human-powered transportation.

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MIMT SANJAY CHOPRA
The federal government has also budgeted significant
transportation money for construction of bicycle-

specific facilities such as bike paths and road improvements

friendly to bicycles in the coming years,

which is another sign of the emergence of bicycling as an

important form of transportation.

COMPANY PROFILE

Atlas Cycles (Sahibabad (U.P.), India’s leading bicycle maker has

earned the coveted ISO 9001: 2000

certification from BSI (British Standards Institution) Management

Systems. Atlas Cycles has industry-

recognized level of quality and service that gives customers the

assurance that every single cycle

manufactured by Atlas has passed internationally accepted and

strict quality process checks.

1. BACKGROUND

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MIMT SANJAY CHOPRA
 Established more than 5 decades ago under
the pioneering efforts of Late Rai

Bahadur Shri Janki Das Kapur, the company begins its activities by
manufacturing bicycles saddles as a

small business enterprise. In the very first year, 12000 cycles

were rolled out. Since then, Atlas has

grown and achieved the distinction of becoming one of the largest

manufactures of quality and strong

brand presence, it has emerged as a natural choice of customer.

Today as the India’s top cycle brand

Atlas –continues to maintain an enviable status in India and

abroad. Atlas is proud to be one of the top

bicycle producing companies in the world, with a capacity to

produce 4 million bicycles per year. Atlas has

earned not only brand loyalty but also millions of satisfied

customers in India and abroad. This is

corroborated by the fact that Atlas Bicycles are being used in over
85 countries.

2. Five decades of Cycling Revolution

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MIMT SANJAY CHOPRA
 Atlas name is synonymous with the cycling revolution
India. Since 5 decades the company has

enjoyed a position of eminence and leadership in the bicycle

industry. This was made possible because

Atlas constantly strived to move ahead with never ending zeal,

technological upgradations, backward and

forward integration and user friendly innovations.

Atlas logo has been derived from Greek God depicting the
legendary hero holding the world on his

shoulders. Thus Atlas assimilates in itself aspirations of the

millions in their progress and transition

through various phases in their lives.

3. THE PHILOSOPHY

Atlas Cycles strongly believes in the philosophy that customer

satisfaction is paramount for ensuring

their long term loyalty. Keeping its spirit of “Racing ahead of

Times”, Atlas Cycles strives to move ahead

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MIMT SANJAY CHOPRA
with never-ending zeal, technological upgradations, rapid
expansion and user friendly innovations to be

the trend setter.

4. THE ISO 9001:2000 CERTIFIED COMPANY

Atlas Cycles (Sahibabad (U.P.), India’s leading bicycle maker

has earned the coveted ISO

9001: 2001 certification from BSI (British Standards Institution)

Management Systems. Atlas Cycles has

industry- recognized level of quality and service that gives

customers the assurance that every single

cycle level manufactured by Atlas has passed internationally

accepted and strict quality process checks.

“Atlas Cycles strives for total satisfaction of its customers by

constantly upgrading the quality of its

product, both in strength and appearance and maintaining a

culture of continuous improvement. Atlas

cycles moves ahead with never-ending zeal , technological up

gradations, rapid expansion & user friendly

innovations to be the undisputed leader in the world of bicycles &

thus keeps producing quality ‘cycles to

match your lifestyles’. The coveted ISO 9001: 2000 certification is

a step forward in this direction.”

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MIMT SANJAY CHOPRA
 Atlas Cycles maintain and improve accuracy of inspection,
testing and measuring equipments through

regular maintenance and calibration. The company has a strong

dealer base who is satisfied with the

timely supply of quality products to them by Atlas. Atlas Cycles is

a staunch believer in achieving total

customer satisfaction by projecting and enhancing the image of

the company for excellence in quality.

This is achieved by constant training and orientation programs of

the employees to attain high level of

quality consciousness.

The ISO certification is among the most comprehensive and

difficult certificates to obtain, which requires

careful documentation of all quality management and evidence of

a consistent system in conformance

with international standards.

5. THE MANUFACTURING UNIT

Atlas Cycles has three manufacturing units in Sahibabad (U.P.),

Malanpur (M.P.), and Sonepat (Haryana).

With ever increasing demand for Atlas Cycles in India and

abroad , manufacturing units of Sahibabad

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MIMT SANJAY CHOPRA
(U.P.) and Malanpur (M.P.), with state-of-art facilities and latest
production technology were set up.

Sahibabad unit is headed by Shri Jai Dev Kapur, President and is

ably supported by Shri Girish Kapur,

Joint President, Shri Gautam Kapur, Joint President and Shri Rishav
Kapur, Vice president. The Malanpur

Unit is headed by Shri Salil Kapur, President.

6. ATLAS IN-HOUSE RESEARCH AND DEVELOPMENT UNIT

The department of scientific and Industrial Research,

Ministry of Science and Technology ,

Government of India has recognized the In-House R&D unit of

Atlas Cycle. Atlas feels honoured by the fact

that it is the only bicycle manufacturing unit whose R&D unit has
been recognized by the government of

India.

7. STEEL TUBE UNIT

Atlas has its own steel tube unit. It can manufacture 50,000
tones of mild steel and alloy steel tubes

per annum. Its computer controlled operations and modern

equipment ensures the vitally needed

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MIMT SANJAY CHOPRA
consistency in quality of steel tubes. Manned by qualified and
highly experienced technical staff, the unit is

self- sufficient as it has its own slitting line and has a healthy and
congenial atmosphere.

8. A STRING OF FIRSTS

Atlas Cycles holds to its credit many innovations and also the
introduction of many new models in India. Amongst the several
firsts:-

• Atlas introduced the first Racing Bicycle in India in 1973.

• Atlas Cycles won the Gold Mercury International Award in

1977. The first nd only Indian Cycle Manufacturer.

• Atlas launched the 5 and 10 gears model for the first time in
India in 1987.

• Atlas had the rare distinction of getting sole franchise as

official supplier of bicycles to 9th Asiad.

• Atlas is the first Indian Cycle manufacturer to introduce twin

suspension double shocker bike.

• Atlas is the first Indian Cycle manufacturer to produce bikes

with power braks i.e. Macho Cycle.

9. GROWTH

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MIMT SANJAY CHOPRA
 The company’s accomplishments in terms of overall growth
are noteworthy. In the year 1951 the

company rolled out 12000 bicycles. Since then its operations have
grown manifold and today the company

touches the figure of 10000 bicycles as its daily production. About

setup second plant at Sahibabad which

is designed to produce 1.2 million bicycle annually. The current

management took over this unit on 31st

August 2003 and since then the production and sales have
registered a growth of 40%.

Keeping its spirit of “Racing ahead of Times”, this unit

initiated technical up gradations and

launched cycle in fancy range surpassing the customer

expectation and fulfilling the demand of today’s

life style.

The company is adding a new administrative block with

modern facilities with a view of providing

an excellent working atmosphere. Already, an exclusive exports

shed has been constructed and is fully

operational. The growth plan envisages setting up of state-of-art

paint shop in the near future.

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MIMT SANJAY CHOPRA
10. THE PRODUCT RANGE

Bicycles these days are much more than just a popular

means of transportation. They cover a

much broader spectrum of activities from fitness and trekking to

racing bicycles. Keeping these trends in

mind Atlas Cycles has a wide range of bicycles including standard

roadster, mountain bike, SLR’s (sport

light roadster), children’s bike, women’s bikes, city bikes, fitness

bikes and sporty exercisers. It has more

than 150 models in various categories. Some of the new models

launched recently are Samrat , Swan,

Stud, Tank Brave, Cheetah, Web King, Crazy Toons, Turbo,

Concorde Pro etc. The company has exclusive

models for export which are custom made as per buyer demand.

11. CUSTOMER PROFILE

The bicycles are sold through a wide and dedicated network of

dealers in the territories within our

jurisdiction. The government of Andhra Pradesh, Tamil Nadu,

Pondicherry, Jharkhand and Bihar are also

customer of Atlas Cycles Sahibabad.

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12. THE GLOBAL PHENOMENON

With a perfect assimilation of styles, technology and a focus on

customer needs, Atlas started exporting

bicycles in 1958. Atlas has fomed strong strategic alliances

overseas.

By offering wide range of products for almost all

segments and age groups, it has strived to be

extremely market friendly and thus emerging as an

internationally preferred brand. A fact that is proven

by its wide acceptance despite stiff market competition that is

emerging globally. Today Atlas bicycles are

exported to over 50 countries around the globe.

Atlas Cycles are vey popular in Sri Lanka, Bangladesh,

Middle East, South East, Asia, Africa etc.

They are also entering the markets in a big way in UK, Russia and
Thailand.

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13. THE BRAND AMBASSADORS

Atlas Cycles has signed on noted film star Suniel

Shetty and Wimbledon Jr. Champion Sania

Mirza as brand Ambassadors for its new range of bicycles. Sania

Mirza who will be seen for the first time

in an advertisement will be endorsing the Atlas Women’s range of

bicycles.

14. THE ROAD AHEAD

Keeping pace with the spirit of Racing ahead of

Times, Atlas is Constantly trying to innovate

and offer products with a firm commitment to meet the emerging

customer needs thereby enhancing its

brand image and acceptability in the global market place.

Company is planning to expand its capacity by adding

new plant and machinery. The plan also

entails setting up a modern paint plant with the view of offering

customers a product that matches

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international standards.

The R&D division is being an upgraded with latest computer

added designing facility. Likewise , the latest

testing facilities and balancing equipments are being added.

The company is strengthening its already fully computerized

office system by adding latest software.

4.1 SWOT ANALYSIS

• Complete manufacturing Solutions- From the drawing

board to the streets the

envisaged and implemented within the company.

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 • Integration of higher level technologies – The technical
assistance for the expertise in the

bicycle industry through outsourcing and collaboration in

R&D field helps the company to produce

components at cheaper price.

• Understanding and integrating customer needs:- The

gap between the supply and demand has

been bridged owing to the use of new softwares such as ERP

and adoption of customer oriented

procedures leading to overall increase in efficiencies.

• Continuous Technology Up gradation:- Due to any new

technology that is being created is

rendered obsolete after a short duration. To maintain the

market strong- hold upgrading of

technology on a continuous basis is paramount. ATLAS

CYCLES strives to maintain its technology

at par with the best in the world.

• Cost Competitiveness:- Due to the continuous hunt for

cheap labour by the international

players, India has been looked upon as the most favourable

places for doing business.

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 • Global Logistics:- The breaking down of transnational
barriers has popped logistics on a global

scale, this in turn proves to be enormously beneficial to the

industry, and infused a lifeline into it.

• High Quality and Productivity:- the company ensures

high quality and productivity through its

latest technology which it gets from its counterpart, and

ensuring that all the employees and

suppliers thrive for better quality and hence increasing the

customer satisfaction level.

The bicycle industry adheres to high quality controls.

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WEAKNESS

• Till recently many of the organized and unorganized

players of the component industry did

not have access to the high levels of research and

development capability.

• The Bicycle industry experts are of the view that the

industry is exposed to cyclic

downturns.

• Most of the local players are dependent on the global

majors for the latest technology and

R&D which in turn hampers their cost effectiveness since

the major player is in a better

position to dictate terms.

• Inability to manage high input cost in comparison to its

competitors

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 • Inability to focus on its Promotions

OPPORTUNITIES

• Bicycle companies in India are now focusing on urban

markets and are looking to expand their

base in the professional and adventure categories. The

bicycle business is flourishing worldwide

with the poor and the moneyed classes alike are interested
in using this mode to reach their

destinations. It resulted in the global companies

experimenting with the change and spreading

their wings.

• The cycle makers are optimistic that the fancy segment

would grow to constitute nearly 70 per

cent of the market by 2010.

• The future could also see Indian consumers upgrading to

lighter sports cycles.

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 • High oil prices and concerns over climate change may
encourage people to take up cycling. The

global industry’s steady production over the past decade

demonstrates the bicycle’s

resilience and its promise for the future as a climate-benign,

healthy, and affordable

transportation alternative.

THREATS

• Emerging Economies are becoming volume drivers with their

associated costs, quality and

productivity advantages.

• Market getting unified into a single integrated market.

• Development to global standards in a compressed lead time

• Imports pose price based competition in the replacement

market.

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 • Solution for high volume and world class quality at low costs.

• The presence of a large counterfeit components market

poses a significant threat.

• Further marginalization of smaller players likely.

• Like in many other sectors, the Chinese threat seems to

have been overstated in the cycle

industry.

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5.1 DATA COLLECTION

A research can call for gathering primary data, secondary data or

both. The data have mainly been

collected via primary source. However a good amount of

secondary data was also used to have a general

understanding of the subject.

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 1) Primary Source

The primary data gathered for specific purpose and are

collected by the researcher himself. It

includes direct communication and feedback from customer, sales

and marketing executives of Atlas

Cycles and other related person . For the purpose of collection of

information from customers , a

structured questionnaire was formulated and the customers were

directly contacted.

2) Secondary Source

The secondary sources are data which were collected for

another purpose and already exists

somewhere. The secondary source of information here includes

library resources, articles in various

newspapers and magazines, product catalogs brochure and online

resources like company websites,

online reports and articles.

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Q1. According to you which is the most selling brand among these?

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Q2. Which company comprises of large range of fancy and small kid
bicycle?

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Q3. Which company provides a great colour combination and design in order
of preferences?

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Q4. Which company provides a wide and new range of different models of
bicycle for sale?

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Q5. Range of matching and stylish accessories relevant to bicycle is provided by
which company?

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Q6. Sale policy of which company suits you the most and is profitable?

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Q7. Which company helps you to advertise their model indoor and outdoor?

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Q8. Satisfactory, beneficial and in favour schemes are provided by which
company, mostly?

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Q9. Best deal in products quality and warranty policies are provides by
company?

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Q11. In your opinion which company is the best in the grievances handling?

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Q12. Which company favours their dealer by organizing most company official
seminars and meetings?

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Q13. Promptness or satisfactory responses are provided by which company?

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 93
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 94
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CONCLUSION:

1. The marketing strategy been used and implemented by the company is no

more in favors of the dealer, as perhaps the ROADSTAR is the only model

which is the marketing money maker for the company and been on its way

of growth but the other models seems to be not in favour of the growth in

comparison of the other competitors.

2. The dealer satisfaction is the most initial and foremost the more necessary

one for the growth of the company but here also the company stand only for

some grade of satisfaction but not with the major points to hold which

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 provide the growth to business for the company.

3. The pricing strategy been implemented by the company on their products is

been not satisfactory with the various models of the other company and lack

with the major differences with the other competitors. As the growth is

concern, unless brand is on the tip of the consumer with all point of

satisfaction especially the price, the growth can’t be with the race of the

other competitor.

4. The range provided by the company can be huge and vast but rather is less in

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 the eye of the consumer as almost the dealer and the consumer been satisfied

by the singular brand only and no one is been satisfied at this point with the

company in the class of range of different bicycle.

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RECOMMENDATION:

1. The marketing strategies should be much improved by the company as only

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 one model sales can’t give the growth of the company, so the more public

relation should be done better with the time and much more awareness of the

company should be done by making certain advertisement and holdings in

the city which is not been done yet by the other company on large, also the

various competition should be organized by the company in certain schools

so as to promote the company and its various models.

2. The dealers satisfaction should be considered the most, other than profit the

various rewards and gifts should be given by the company and the various

schemes on sales of specific model with the large scale of profit should be

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 given, also various seasonal offer and schemes should be made so as to

make a growth to the company sales and the most make a image of company

in mind of the dealer.

3. The pricing strategies should be revise again by the company as most of the

major models sales is been lacking due to the price substantial differences in

comparison of the other competitors, also one model is been revealed by the

respondents was the shocker bikes which is the lowest of the hero company

in price in comparison of the other companies shocker bikes.

4. The difference if stand by the price so also been stand by the range

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 availability and it should be notice by the company to retrieve new model

which becomes icon of the consumer also the differences is the matching

accessories been provided by dealer to consumer sometimes not suit with the

sale of that relevant model which make a negative image of lacking behind

of company with the competition of other models of other company.

5. The awareness of the company and its product to the consumer should be

done by providing various modes of schemes to the consumer from time to

time to up thrust the consumer mood and its thoughts of buying.

6. The various differences of the company stand with the quality priorities and
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 that’s where company should be in favour of consumer with a high quality

with low cost in comparison with the other competitor.

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 • PHILIP KOTLER : MARKETING MANAGEMENT

• SUJA.R.NAIR : CONSUMER BEHAVIOUR

• RAMANUJ MAJUMDAR: MARKETING RESEARCH

• C.R.KOTHARI: MARKETING RESEARCH

• BICYCLE RETAILOR & INDUSTRY NEWS, PUBLISHED BY

THE NBDA

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 • http://www.financialexpress.com/news/Atlas-Cycle-
forays-into-pharma-business/313225/---- Charanjit Ahuja

• http://findarticles.com/p/articles/mi_m0EIN/is_2006_Jul
y_6/ai_n26917638

• http://www.valuenotes.com/ajain/ajain_Atlas_02may05
.pdf?ArtCd=35016

• http://www.thehindubusinessline.com/2007/02/15/stor
ies/2007021504881300.htm

• http://www.business-
standard.com/stockpage/stock_details.php?
stk_id=505029

• http://www.indiainfoline.com/company/discorpnews.a
sp?storyId=6113039007&lmn=4&tbl=news

• http://www.tribuneindia.com/2003/20031226/ncr2.htm

• Direct Marketing: Strategy Planning Execution By by

Edward L Nash

• Pharmaceutical Marketing: Strategy and Cases by Mickey

Charles Smith

• On Target: The Book on Marketing Plans by Doug Wilson

• Conversation Marketing: Internet Marketing Strategies By Ian Lurie

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http://www.wheelpublications.com/Annual2004/InnovationPassion
Business.htm

http://www.bicycleindia.com/bicyclestats.php

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http://www.indiandata.com/bicycle-and-parts.html

http://www.bicycleindia.com/bicyclehistory.php

http://economictimes.indiatimes.com/Two-
wheelers/Bicycle_industry_eyes_urban_market/ articleshow/
2506735.cms

http://www.domain-
b.com/news_review/200702feb/20070222newsb.html

http://business.gov.in/Industry_services/light_industry.php

www.atlascyclesonepat.com

www.atlascycles.co.in/about_ag.asp

www.corporateinformation.com/Company-Snapshot.aspx

www.alacrastore.com/company-
snapshot/Atlas_Cycles_Haryana_Limited

money.rediff.com/money/jsp/company.jsp?

www.zibb.com/all/theme/c/Atlas+Cycles+(Haryana)+Ltd

www.alibaba.com/company/100159165.html

www.hotfrog.in/Companies/Atlas-Cycles-Haryana

www.myatlascycle.com/wikimapia.org/1612511/ - 10k –

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MIMT SANJAY CHOPRA
www.bombayharbor.com/Company43238/Atlas_Cycles_Haryana_L
td.html - 19k -

www.datamonitor.com/companies/company/?pid=A9CF400E-
87FC-4C20-9285-
myiris.com/shares/company/snapShotShow.php?
icode=ATLCYCIN&select=1 - 51k –

www.stockmarketmessages.com/stockname/a/atlascycle.htm - 9k
investing.businessweek.com/research/stocks/snapshot/snapshot.a
sp?symbol=ATCY.BO

www.fundoodatajobs.com/search_results.php?company_id=36904
- 34k –
yellowpages.sulekha.com/.../bicycle-dealers-
services/indraprastha-h-o/atlas-cycle-haryana-limited.htm - 39k

www.atlascycles.co.in/about_management.asp -

www.atlascycles.co.in/atlasnews.asp?newsid=1 - 11k
automobiles.indiabizclub.com/profile/2246392~atlas+cycles+
(haryana)+limited~sahibabad_india - 15k

www.findouter.com/India/City/Uttar_Pradesh/Sahibabad/Bicycles -
6k -

www.bis.org.in/other/tedseminar.htm - 65k -
dir.indiamart.com/indianimporters/ag_water.html - 32k

www.wheelpublications.com/Annual2004/AtlasCyclesPeddingToGl
ory.htm - 8k -
crescenttechno.com/clients.htm - 18k –

www.financialexpress.com/news/Atlas-Cycles-Eyes-Auto-Ancillary-
Foray-In-Diversification-Thrust/106995/0 - 54k
bikeandrickshaws.com/manufacturers-exporters-
Bicycle_Spares_Parts_and_Accessories.html - 98k

www.atlassteeltubes.com/about_clients.asp - 55k
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afaqs.com/perl/news/company_briefs/index.html?id=2454 - 10k

www.dazzleyellowpages.com/Valuable-Resource/People/Baba/?2 -
85k –

www.findouter.com/Asia/India/Business_and_Economy/Industries/
Bicycles - 12k -

www.hkwireproducts.com/Sisterconcerns.htm - 21k

www.infodriveindia.com/india-Imports.aspx - 78k
content.icicidirect.com/research/notestoaccounts.asp?
icicicode=ATLCYC - 42k –
content.icicidirect.com/research/DirectorsReport.asp?
icicicode=ATLCYC - 47k –

www.trademart.in/manufacturers-exporters-
Bicycle_And_Rickshaws.html - 107k -
indiaearnings.moneycontrol.com/sub_india/reports.php?
sc_did=ACI08&type=notestoacc - 59k

www.rediff.com/money/2003/sep/13spec4.htm - 21k

www.hinduonnet.com/2001/07/12/stories/0612000f.htm - 7k
importer.indiatradepage.com/all/Indi/499.itp - 42k

www.easy2source.com/supplier/5/2360/ - 8k

www.kompass.com/mt/IN738095 - 19k

www.indianyellowpages.com/india/manufacturer_exporters/b/bicy
cles_parts.htm - 49k -

www.tribuneindia.com/2006/20060928/delhi.htm - 65k -

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www.technoworld.in/techno/fundamental/reports.asp?
Location=DIRRPT&ReportType=DIR&CompanyCode=1259... - 75k

www.business-standard.com/common/news_article.php?
leftnm=sme&bKeyFlag=BO&autono=323713 - 94k

www.moneycontrol.com/stocks/company_info/notestoaccount.php
?sc_did=ACI08 - 91k –

www.bike-eu.com/.../market-reports/2792/%3Cb%3Eindia-2007-
%3C-b%3E-levs-to-grow-to-70,000-units.html - 26k

www.dsir.gov.in/tpdup/irdpp/valid06.rtf

www.niir.org/.../ - 78k

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 110
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 QUESTIONNAIRE

Q1. According to you which is the most selling brand among these?

ATLAS

MILTON

HERCULES

HERO

AVON

OTHER

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Q2. Which company comprises of large range of fancy and small kid
bicycle?

ATLAS

MILTON

HERCULES

HERO

AVON

OTHER

Q3. Which is the largest selling model of bicycle in your shop?

A) ROADSTAR - ……………….

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

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B) KIDS - ……………..

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

C) SHOCKER/GEAR - …………….

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

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D) MTB/ATB - …………….

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

Q4. Which company provides a great colour combination and design in order
of preferences?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

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Q5. Which company provides a wide and new range of different models of
bicycle for sale?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q6. Range of matching and stylish accessories relevant to bicycle is provided by

which company?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

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Q7. Sale policy of which company suits you the most and is profitable?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q8. Which company helps you to advertise their model indoor and outdoor?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

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Q9. Satisfactory, beneficial and in favour schemes are provided by which
company, mostly?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q10. Do you suggest the brand and company to customer?

YES

NO

Do they apply the same?

Sometimes

Always

Never

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Q11. Best deal in products quality and warranty policies are provides by
company?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q12. In your opinion which company is the best in the grievances handling?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

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Q13. Which company favours their dealer by organizing most company official
seminars and meetings?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q14. Promptness or satisfactory responses are provided by which company?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

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 120
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 CASE STUDY

TITLE: MARKET EXPANSION STRATEGIES OF ATLAS CYCLES

ABSTRACT:- The case ‘Market expansion strategies of Atlas cycles ‘ examines the the

market expansion strategies adopted by Atlas Cycles (Haryana) Limited,

India's biggest bicycle maker after Hero Cycles, in response to intense

competition and a decline in sales of its Model - the Atlas Goldline. Then

came the Funfleet range of sports bikes which took the market by storm.
Atlas Goldline enjoyed a near-monopoly status, until the Government of

India liberalized the economy in 1991. This led to the entry of new

players like TI, Avon, and Neelam to give Atlas tough challenges. Atlas

began to introduce new models, and upgrade its existing models in

response to market demand.

The growing preference for two-wheelers has affected the purchase of

bicycles in India. Since the late 1990s, the urban market has stagnated

while the purchases in the rural market have been decreasing. It was in

this scenario that Atlas Cycles launched a range of bicycles in early

2005, targeted at urban adults in their early thirties. The caselet examines

the various steps taken by the company in designing, promoting,

distributing, and selling its new bicycle. It also discusses Hero Cycle's

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 strategies to get a share of the rural and urban markets.

For instance, the company introduced the ‘fancy

bicycles’ to shed its image of being a manufacturer of roadsters. The case

study looks into Atlas Cycles (Haryana) Ltd. came back from the crunch

to retain its place as the top bicycle maker in India. It has also earned the

coveted ISO 9001: 2000 certification from BSI (British Standards

Institution) Management Systems.

Keywords: Bicycles, Urban Adults, Hercules, BSA Cycle Run, Hero Group, Market

leadership ,market expansion, marketing communication, sales promotion,

Customer Satisfaction.

"Results always exist outside the orgnisation - in the market place.

Only costs and efforts exist inside the organisation". -Peter Drucker

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Key Issues:

• Product innovations in the bicycle industry

• Value added services to attract customers

• Strategies for rural bicycle market

• Gain an overview of the Indian bicycle Industry, especially the fancy segment

• Examine the reasons that made bicycle marketers look for latent markets like the

adult segment. Also briefly mention the stumbling blocks for Atlas Cycles in

marketing to the adult segment.

• Comment on the measures being taken by Atlas Cycles and Hero to woo the thirty-

plus urban audience and discuss the other strategies that Atlas cycles can adopt to

increase the market share of Noida .

The Marketing Mix

In order to overcome the problems that Atlas faced in the early 1980s and help the company

regain its market share, a restructuring plan was implemented. They implement a strategy for

bringing both workers and dealers together and involving them in taking key decisions relating to

the company. A new marketing philosophy was developed based on the desires of the customers

and Atlas made efforts to position bicycles as a lifestyle product.

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Product

At the time when Atlas was formed, it offered only roadsters bicycle to its customers and

provided three basic styles. However, the company realized that in order to survive, it had to

offer its customers more choice.

Pricing

Atlas realized that it would not be possible for it to compete with the US manufacturers on the

pricing front. This was because manufacturers like HERO not only manufactured a low-priced

high-quality product, but also spent heavily on advertising their products

Distribution

Atlas started selling its Bicycles through its dealers in 1952. All the dealers were independent

individuals with a business orientation.

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Promotion

Over the decades, Atlas had adopted several strategies to promote its bicycle brand. The products

of bicycle were sold to retail customers mainly through dealer promotions, customer events, and

advertising through national television, print, radio, direct mailings, and through advertising on

the Internet.

“COMPREHENSIVE RESEARCH & ANALYSIS

OF MARKET STRATEGIES OF ATLAS CYCLES VERSUS COMPETITORS”

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INDUSTRY GUIDE : Mr. Rahul Mathur
FACULTY GUIDE : Mr. Sandeep Sharma
STUDENT’S NAME: Sanjay Chopra

• OBJECTIVE:- To determine the marketing strategies and

potential of Atlas company for the upcoming years and to
determine To study the perception of the consumers about
Atlas Cycles Brands vis-à-vis other brands.

• FINDINGS:- Here I found that there is a boom in the Hero

segment as the preference for the fancy cycle is more and
Atlas’s market share is less in the fancy segment. Thereby the
company have to target all the upcoming fancy brand.

• RECOMMENDATION:- In view of the expectations and

requirements of the bicycle industry it is recommended that
early launching and advertising of the new models will be
beneficial for the company to increase its market share and
profits.

• ABOUT INDUSTRY GUIDE:- Mr. Atul Sharma is a very positive

person who can motivate anyone with his charming
personality . Under his precious guidance I learnt a lot
regarding the industry and how corporate world functions.

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