India’s Hero Cycles increases stake in Colombo based bicycle unit due to zero duty on Sri Lankan exports to India and Europe
The Indian media has reported that with zero customs duty on exports to India and Europe from Sri Lanka, Hero Cycles is planning to increase its stake in its Colombo-based bicycle unit this quarter.
The Indian Express has reported that Hero Cycles, the world’s largest bicycle manufacturer by volume, currently owns 60% stake in the Sri Lankan entity BHS Ventures.
Hero Cycles Chairman and Managing Director Pankaj Munjal has said: “This plant is strategically located to cater to the European and Indian markets and plant acquisition is one of the many steps to expand Hero’s presence globally.
“While exporting to Europe from India invites a custom duty of 12-14%, Sri Lanka has a special status for exporting to India and Europe at zero duty.”
BSH Ventures is an export-oriented firm located in the Biyagama Export Zone of the island nation.
The decision by India’s Hero Cycles to increase its stake in the company’s joint venture in Sri Lanka due to the zero customs duty on exports to India and Europe from Sri Lanka, is an encouraging sign for other foreign companies to engage in doing business from the island nation. Sri Lanka enjoys trade concessions from the EU as well as US and also enjoys several free trade agreements (FTAs) with many foreign countries. All these trade concessions and FTAs enjoyed by Sri Lanka could be utilized by foreign businesses doing businesses from Sri Lanka as well.
|Article Code :||VBS/AT/30052018/Z_10|