The Annual General Meeting of All India Cycle Manufacturers' Association (Aicma) was held at Phd House, New Delhi on December 21, 2009. Following are the highlights of the 23rd Annual Report.

L to R: Messrs. O P Munjal (Hero Cycles), Onkar Singh Pahwa (Avon Cycles), Girish Kapur (Atlas Cycles) and Ms. Mallika Verma (Executive Secretary - AICMA)

"The Executive Committee of the All India Cycle Manufactures' Association (AICMA) has pleasure in presenting the 23rd Annual Report for the year 2008-09 highlighting the important activities of the Association. together with the copies of the Income & Expenditure Account for the period 2008-09 and Balance Sheet as on 31st March 2009. The Executive Committee of AICMA remained committed to the promotion and growth of the bicycle industry. During the year under review the Committee continued to work in this direction. It interacted and maintained close linkages with the Central & State Governments, industry, trade and its members so as to create an enabling environment conducive to the growth of the industry."

R to L: Messrs. Sanjay Kapur and Angad Kapur of Atlas Cycles

The 22nd Annual General Meeting of the AICMA was held on 6th January 2009 at Ludhiana whereat Shri Girish Kapur of Atlas Cycles (Haryana) Ltd., Sahibabad was elected as President and Shri Onkar Singh Pahwa of Avon Cycles Ltd., was elected as Vice President.

During the year, the Executive Committee met five times, whereat important issues concerning the bicycle industry and trade were discussed in detail, including policy decisions announced by the Government of India and the State Governments. The Committee also reviewed routine matters periodically, including review and monitoring of the availability and prices of basic raw materials, new technologies, marketing and retailing and promoting of exports etc.

L to R: Messrs. Arun Alagappan (TI Cycles), Rahul Gupta (TI Cycles), G D Kapoor (Hero Cycles), I D Chugh (Milton Cycles), N S Dagar (Avon Ispat) and Vinay Khurana (Wheel Publications)

Pricing of Bicycles

The members discussed the impact of the fluctuations in the prices of raw materials consumed in the production of the bicycles during the year including the impact of the changes in the rate of taxes and duties. The state level imposition/ deletion of various levies and taxes was also discussed and appropriately represented.

National Cycling Championship, Patiala

A National Cycle Championship in Patiala was organized by the Cycling Federation of India (CFI) with support of member companies of the Association. In the interest of the industry, Shri Girish Kapur, President, AICMA proposed to organize bigger Events with the CFI on similar lines.

Besides participation in established old regional fairs and melas such as the ones organized at Agra, Gwalior, Meerut etc, the Committee also jointly agreed to support exhibitions which offered ample opportunity for media mileage and branding, Members were unanimously of the view that AICMA should innovate new methods to motivate people for adopting common man's vehicle.

Cycle Promotion

To promote bicycle amongst layman, Shri Girish Kapur, President suggested that AICMA should consider involving celebrities such as Shri Robert Vadra, Shri Anil Kapur for promotion of cycles. He informed that Shri Vadra and his group of friends, use state-of-the-art bicycle for coming upto Lodhi Garden for a morning walk. It was suggested that these celebrities could be involved/requested to support the campaign for motivating people to use this environment-friendly, common man's affordable vehicle more frequently.

Members also considered organizing a cycle marathon on the lines of successful international events such as 'tour de France' to promote the industry. Routes for the marathon were also explored. It was suggested that the Express Highway, or the Agra-Jaipur-Delhi Triangle could be considered for the cycle marathon.

Cycle Tracks And Paths

For promoting bicycle industry in the country, the Association emphasized the need for taking up the issue of creation of cycle tracks. Members were of the view that meetings be organized with Chief Ministers of various States. It was proposed that a delegation comprising of senior members meet the Chief Ministers of various States and request them for allocating funds for creating cycle paths in all major cities. It was also proposed that in this regard the Department of Environment and the PCRA be approached for their valuable support.

It was suggested that a delegation could also meet the Union Finance Minister to impress upon the Central Government the need and urgency for budgetary allocation for creation of cycle paths across the country.

Bicycle Industry

The bicycle industry of India is one of the most established industries. India is the second largest bicycle producer of 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, Indian bicycle manufacturing and bicycle spares industry is well accepted and is also widely recognized for its quality standards in the international market.

The industry is making an endeavor for enhancing exports since there is a significant scope for export of Indian bicycles, bicycle spare parts and bicycle accessories.

The demand for cycles in 2008-09 stood at 26.10 million units which is expected to rise to 27.75 million units in 2009-10 whereas, the market growth rate for past five years starting from 2004-05 to 2009-10 stands at 6.7%. The approximate export and import figures of bicycle for the year 2007-08 were Rs.112.0crore and Rs.38.3crore respectively.. During the year 2007-08 the production was reported at 12000lakh units. This sector qualifies for 100% FDI under automatic approval.