TI Cycles inks deal to buy 2 Sri Lanka-based firms

 TI Cycles of India, a part of the $ 4.7 billion Murugappa Group, has inked a definitive agreement to acquire controlling stake in Creative Cycles (Private) Limited and Great Cycles (Private) Limited of Sri Lanka.In a filing to the BSE on Thursday, Tube Investments India Limited (of which TI Cycles of India is a Division), said it had entered into separate shareholders’ agreements with Shuyuan Gan, promoter and 100% shareholder of Great Cycles and Creative Cycles, both situated in Colombo, for acquiring from him 80% of the issued and subscribed share capital of each of these two companies for an aggregate consideration of $ 3.34 million.

This acquisition, when concluded, will help strengthen and expand the global supply chain for the premium cycles portfolio of TI Cycles.

Creative Cycles and Great Cycles have production facilities in the Katunayake Export Processing Zone, Colombo. These facilities can produce a wide range of bicycles – from kids to performance cycles and from steel to alloy bikes.

Yet to be approved

Subject to approvals from requisite authorities and successful completion of all formalities, the acquisition is expected to close by the end of this financial year.

“With this acquisition, we will be able to grow the market for premium cycles, and our market share in the premium segment even more aggressively,’’ said L. Ramkumar, Managing Director, Tube Investments.

“I am excited to be associated with TI Cycles and the Murugappa group,” said Mr. Gan, founder & Director of Creative Cycles & Great Cycles. “We’re looking forward to working closely with TI Cycles as an integral part of their global supply chain,’’ he added.

TI Cycles has 4 mother brands – BSA, Hercules, Mach City and Montra – and sub-brands such as Ladybird and Roadeo which cater to a wide variety of distinct consumer segments. Apart from a 1,400-strong direct dealer and distribution network, TI Cycles has established exclusive retail formats for marketing its brand of cycles and accessories – Track & Trail, Track & Trail Sport BSA Hercules.