Hero Cycles acquires 47% stake in Germany’s MIFA

hero cycles acquires stake in german cycle company105 year old German cycle maker, MIFA is currently loss-making firm, part of these funds will go towards working capital requirements. This new venture is expected to bring about a combination of technologies which will go a long way in ensuring that Hero rises to the top of the global cycle market which as on date is worth $49 billion globally.

This liaison with Hero Cycles comes at a time when MIFA, a leading German bicycle manufacture is ridden with debts that were taken for new investments and for the development of high end bikes. As a part of this new partnership, MIFA will be issuing about 4.9 million shares to Hero Cycles through OPM Global while a rights issue will also be made in the coming months.

Hero Cycles has an annual turnover of INR 2,000 crores. It is a major player in the bicycle sector in the country with exports to over 90 global markets. Besides sharing of investment, the partnership between Hero Cycles and MIFA will also involve the sharing of R&D facilities where electric bikes are concerned.