Technical Report the Indian Bicycle Sector Enhancing Productivity in the Indian Bicycle Sector

TECHNICAL REPORT THE INDIAN BICYCLE SECTOR ENHANCING PRODUCTIVITY IN THE INDIAN BICYCLE SECTOR

Vienna International Centre · P.O. Box 300 · 1400 Vienna · Austria Tel.: (+43-1) 26026-o · [email protected] www.unido.org TECHNICAL REPORT – THE INDIAN BICYCLE SECTOR Enhancing Productivity in the Indian Bicycle Sector

This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialised” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO.

The opinions, statistical data and estimates contained in signed articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO. Although great care has been taken to maintain the accuracy of information herein, neither UNIDO nor its Member States assume any responsibility for consequences which may arise from the use of the material.

ACKNOWLEDGEMENTS 6 EXECUTIVE SUMMARY 7 1 INTRODUCTION 11 2 INDIAN BICYCLE INDUSTRY 15 2.1. Description of the Industry 15 2.2. Industry-wide Critical Needs 17 3 DIAGNOSTIC ASSESSMENT OF THE RDCBSM AND THE INDUSTRY ASSOCIATIONS 27 3.1. The Research and Development Centre for Bicycle and Sewing Machine (RDCBSM) 27 3.2. Industry Associations 31 4 RECOMMENDATIONS 33 4.1. Industry-wide Recommendations 33 4.2. Recommendations for the RDCBSM 38 5 CONCLUSION 47 REFERENCES 49 ACKNOWLEDGEMENTS EXECUTIVE SUMMARY

The ‘Report on the Indian Bicycle Industry’ was drafted in the context of the UNIDO project The UNIDO bicycle project aimed to support the Indian bicycle industry by strengthening titled ‘Development and Adoption of Appropriate Technologies for Enhancing Productivity the capacity and capability of the Research and Development Centre for Bicycle and Sewing in the Indian Bicycle and Bicycle Parts Sector’, supported by the Department for Promotion Machine (RDCBSM), and the two industry associations - the All India Cycle Manufacturers of Industry and Internal Trade (DPIIT), Government of India. The project was implemented Association (AICMA) and the United Cycle & Parts Manufactures Association (UCPMA) - to by UNIDO’s department of Trade, Investment and Innovation (TII), under the directorship of provide better management and technical support to the Indian bicycle industry. Dr. Bernardo Calzadilla-Sarmiento and was managed by Mr. Farrukh Alimdjanov. The activities under the UNIDO bicycle project included transfer of state-of-the-art technol- Technical inputs for the assessment were sought from UNIDO expert Mr. Jeremy James ogies, technical capacity building and knowledge sharing activities (technical workshops, Papadopoulos. The analyses and results in the report were drafted by Ms. Shraddha Srikant training of trainers, international study tours and fellowship training), twinning with interna- and have been reviewed and edited by Dr. Ritin Koria and Mr. Vikas Kumar. tional counterparts and upgrading of the RDCBSM’s testing facilities.

Proofreading was undertaken by Ms. Lauren Cooke, and final layout and design was undertaken These training programmes were implemented based on an assessment of the baseline by Mr. Mauricio Mondragon. scenario, i.e. the needs of the Indian bicycle industry and the existing capacities and skills of RDCBSM and the industry associations. Furthermore, we would like to extend thanks to the staff of the Research and Development Centre for Bicycle and Sewing Machine (RDCBSM), the All India Cycle Manufacturers’ Brief industry assessment: Association (AICMA) and the United Cycle and Parts Manufacturers Association (UCPMA) for their support during the data collection process and active participation in project activities. At present, the Indian bicycle industry largely produces basic models of steel roadster bicycles (mostly for government tenders), single speed children’s bicycles and a very limited volume of premium bicycles (the parts for which are supplied by imports). The Indian bicycle manufacturers are currently unable to make the type of bicycles demanded in global markets, which are aesthetically and technically superior, are made from high-end materials, allow multiple speed settings and require several special components. Also, the domestic market is facing increasing competition from more cost-competitive imports. To make the transition from manufacturing basic bicycle models/ parts to manufacturing components for high-quality premium bicycles, some of the industry-wide critical needs include:

»»Availability of correct grades of appropriate raw materials with a focus on aluminium) »»Marketing and sales channels for international markets »»Expert handholding for modern manufacturing processes »»Technology sharing mechanisms for adoption of superior raw materials (aluminium, plastic, etc.) and production of high-specialty components »»Design competence (aesthetic design; industrial design & componentry; supporting tooling/ machining) »»Robust testing and certification - testing for various international standards, raw material testing, environmental/chemical testing, component-specific tests and benchmarking of high-quality components for development of quality-based tests

6 | The Indian Bicycle Sector The Indian Bicycle Sector | 7 Executive Summary

»»Technology development for new products (such as e-bikes, load bearing hybrid roadsters, for continuous technology development in partnership with the industry; the training areas carbon fibre/ titanium/ bamboo bicycles) should also be expanded, more in line with the industry’s needs. This is also the case with the testing services, as industry requires increasing testing support for international and mate- »»Market research for industry trends, demand analysis & market scoping, futuristic trend rial/ component specific certifications. Overall, the skill levels of the staff must be enhanced projections, reporting/ exploration of emerging technologies and related developments for them to effectively assist the industry. »» Active advocacy mechanisms for key infrastructure/ policy-driven issues (import duties, freight charges, promotion of indigenous production, cycling infrastructure, promotion of Based on the findings of the diagnostic assessment, several recommendations for a more cycling, etc.) robust service portfolio and areas in which capacity building initiatives would benefit the RDCBSM personnel have been identified. The recommendations are oriented towards The main industry-wide recommendations include the establishment of a raw material bank strengthening the RDCBSM’s expertise level and service offerings, and towards making it a (mainly aluminium in appropriate grades, forms, quantities and prices); technical guidance dynamic nodal point to coordinate and facilitate the adoption of modern manufacturing prac- and hand-holding to adopt modern manufacturing processes and best available technol- tices to increase the competitiveness of the Indian bicycle industry. ogies to produce bicycles and components of exportable and consistent quality, aesthetic designs and economical pricing; focused marketing/common node for international sales to ensure the demand for Indian-produced bicycle components and appropriate government regulations and policy support relating to import duties, material pricing, infrastructure, required standards, domestic content and trade actions. The report then goes on to assess how the nodal technical institution, the RDCBSM, is positioned to deliver the identified avenues of support to the industry.

The associations are oriented towards playing a strong advocacy role for the dissemination of information to members, constant communication with relevant government entities and stakeholders, participation in trade fairs and engagement with schemes/ initiatives (such as the cycle valley/ request for special purpose vehicles). Thus, they are well-positioned to facilitate policy support for the industry-wide recommendations to materialize.

Research and Development Centre for Bicycle and Sewing Machine (RDCBSM):

The RDCBSM’s service portfolio for the bicycle industry currently includes testing and certification (for ISO, IS and select international tests), tooling, production of special purpose machines (along with associated design & development), and training (including diploma and short-term courses). Industry actors, especially the SME components manufacturers, value the services currently provided by the R&D centre with respect to the testing and special purpose machines designed/ supplied. However, it has been observed that the RDCBSM faces several technical skill and knowledge gaps, and has largely stagnated in skill/ technologies development and transfer to the industry.

The R&D centre hasn’t necessarily kept abreast with global market developments and the associated production practices, and is therefore not in a position to provide guidance to the industry for relatively newer products and technologies and facilitate the necessary technology sharing. There is very limited research activity at present, with considerable potential in product development, trouble-shooting services, and applied research for the adoption of emerging/ new technologies. Furthermore, there could also be a greater focus on activities

8 | The Indian Bicycle Sector The Indian Bicycle Sector | 9 INTRODUCTION 1

The United Nations Industrial Development exposure to, and knowledge of, best availa- Organization (UNIDO) has implemented a ble technologies and best practices across project titled ‘Development and Adoption the global bicycle industry, and to facilitate of Appropriate Technologies for Enhancing implementation of appropriate technologies Productivity in the Indian Bicycle and Bicy- and measures in the Indian context. cle Parts Sector’, in collaboration with the Department for Promotion of Industry and These programmes were implemented based Internal Trade (DPIIT) - formerly known as on an assessment of the baseline scenario, DIPP - Ministry of Commerce and Industry, i.e. the needs of the Indian bicycle industry Government of India. and the existing capacities and skills of the RDCBSM and the industry associations. The The project aimed to support the Indian industry diagnostic assessment was carried bicycle industry by strengthening the capac- out to analyse the structure of the Indian bicy- ity and capability of the nodal technical cle industry, the main industry-wide critical institution for the sector, the Research and needs and the main supply and demand-ena- Development Centre for Bicycle and Sew- bling factors required to build the competitive ing Machine (RDCBSM), and select industry position of the industry. This analysis enabled associations - the All India Cycle Manufac- the identification of gaps in the beneficiary turers’ Association (AICMA) and the United institutions' service delivery and knowledge Cycle and Parts Manufacturers’ Association base and subsequently, effective orientation (UCPMA) - to provide better management of the capacity building programmes of the and technical support to the industry to project. The report presents these findings strengthen the global competitive position and recommended actions for improvement. of the Indian bicycle sector. The assessment was based on information The project facilitated comprehensive tech- collected through: nical capacity and capability upgrading for the RDCBSM and the associations through »»An initial assessment of the availa- a series of soft interventions (including tech- ble background information, analyses, nology transfer; technical workshops, inter- reports and market data. national study tours; fellowship training pro- »»Interviews and interactions with a rep- grammes; partnerships with international resentative sample of employees at the organizations; and hands-on training pro- RDCBSM, the AICMA and the UCPMA, grammes) and hard interventions (procure- sample bicycle and parts-manufacturing ment of equipment for the testing facility of units and the Government of Punjab. These the RDCBSM). The aim of this set of capacity interviews were aided by supporting back- building activities was to enable the bene- ground documentation and data provided ficiary institutions to acquire the necessary by the RDCBSM, the AICMA and the UCPMA.

The Indian Bicycle Sector | 11 Introduction 10% ≈ 15.5 MILLION nd OF THE WORLD BICYCLES PER YEAR 2 LARGEST IN THE WORLD PRODUCTION (2014) ≈ $ 1.5 BILLION VALUE 35% CHILDREN’S BICYCLES

60% 5% THE HUB FOR BICYCLE BASIC MEDIUM-TO-HIGH- MANUFACTURING LOW-COST END BICYCLES The project aimed to support the Indian ROADSTER “ bicycle industry by strengthening the LUDHIANA capacity and capability of the nodal technical institution for the sector, the Research and Development Centre for Bicycle and Sewing Machine (RDCBSM), and select industry associations - the All India Cycle Manufacturers’ Association THE INDIAN

(AICMA) and the United Cycle and Parts EMPLOYMENT

Manufacturers’ Association (UCPMA) BICYCLE ≈ 1 MLN - to provide better management and “ INDUSTRY PEOPLE technical support to the industry to strengthen the global competitive position of the Indian bicycle sector. MAINLY DOMESTIC HIGHLY DEMAND FRAGMENTED

EXPORT ONLY 5-7% OF THE TOTAL PRODUCTION

12 | The Indian Bicycle Sector The Indian Bicycle Sector | 13 INDIAN BICYCLE INDUSTRY 2

2.1. Description of the Industry1 the basic roadster bicycle segment and are mostly directed towards developing coun- The global bicycle market is expected to tries in Africa and South Asia. reach an estimated $34.9 billion by 2022 and is forecast to grow at a CAGR of 2.7% The value chain of the Indian bicycle from 2017 to 2022 (Research and Mar- industry operates at two levels - small and kets, 2017). The growth potential is said medium enterprises, produce bicycle com- to arise from segments such as e-bikes, ponents and accessories, whereas the larger road, mountain terrain bike (MTB), and chil- manufacturing units/OEMs focus on bicy- dren’s bicycles. The major drivers of growth cle assembly and production. The industry for this market are: increasing fitness con- is dominated by 4 major bicycle-producing sciousness among people; environmental companies (controlling almost 85% of the concerns; traffic congestion, and govern- market share), medium sized manufactur- ment programmes to promote cycling. ers (contributing 12% of the market share) and around 3500-4000 small and medium The Indian bicycle industry produces enterprises, producing bicycle components almost 15.5 million bicycles per annum, (AICMA). The SME component manufactur- providing employment to almost 1 million ers provide the necessary supply to the large people. Valued at approximately $ 1.5 bil- bicycle manufacturers. lion, the industry is the second largest in the world, catering for 10% of the world’s The SMEs, which depend mainly on production (The Energy and Resources unskilled and semi-skilled workers, have Institute (TERI), 2014). The Indian bicycle grown over time but in an unorganised and industry is growing at approximately 4% informal manner and are engaged largely in and the production of bicycles is mainly producing bicycle components and parts. directed towards domestic markets, with However, the bicycle/parts-manufacturing exports representing approximately 5-7% companies, particularly in the small-scale of the total production. The product mix sector, are losing ground and competitive- comprises basic roadster category bicy- ness in terms of both price and quality. This cles (60%), children’s bicycles (35%) and is primarily due to increased competition medium-to-high-end bicycles (about 5%). from imports, poor manufacturing practices, The nature of the domestic demand, there- the continued production of low-end (“tra- fore, is mainly from the low-income popu- ditional”) bicycles, and the usage of dated lation, making it a price-sensitive industry technology. There has been an increasing (The Energy and Resources Institute (TERI), trend of imported bicycles and parts, with 2014). The exports are also monopolized by imports growing much faster (25%) than the 1 Statistics from AICMA documents and TERI Report exports (10%) of Indian bicycles (The Energy “Cycling towards a greener future’ (2014) and Resources Institute (TERI), 2014).

The Indian Bicycle Sector | 15 Indian Bicycle Industry

The Indian bicycle industry has some key market is also faced with growing com- conditions affecting both demand and line with international trends and stand- characteristics: petition from the import of good-quality, supply of bicycles, such as policies related ards, effectively market and sell bicycles cheaper parts and bicycles from countries to import duties for bicycles and parts, in global markets and facilitate backward » The state of Punjab holds an 80% share in » such as China. encouraging indigenous production for and forward integration within the domes- India’s bicycle production. The city of Lud- government tender bicycles, compli- tic value chain. »»The industry is a two-tier industry- the hiana is the hub for bicycle manufacturing ance-ensuring mechanisms for Indian component market comprises mainly in India, with over 3,500-4,000 MSMEs bicycle standards, setting up channels for (3500-4000) SMEs; whereas bicycle producing bicycle components, while the international sales, bilateral agreements assembly/production is dominated by 2.2. Industry-wide Critical cluster produces almost 40,000-50,000 for bicycle trade, cycling infrastructure and (mainly four) large-scale companies, con- bicycles per day. promoting cycling culture in the country. Needs trolling 85% of the market. »»Ludhiana is a landlocked city, a considerable distance from the nearest ports, result- »»The component-producing SMEs are Institutions: Over the last 20 years, the global bicycle indus- largely informal and unorganised, using ing in substantial freight charges and tran- »»The industry is supported by the Research try has made substantial advances in mate- sition time for the transportation of goods. conventional and mostly manual technol- and Development Centre for Bicycle and rials technology (such as composite metal ogy. The technology level of the industry matrix (CMM), alloys, carbon fibre, plastics, » Bicycle production is focused on basic, Sewing Machine (RDCBSM) - the nodal » is considered largely basic (with the pro- titanium, injection moulding, magnesium), low-cost roadster bicycles, made of steel. technical agency for the industry, located duction of steel components/bicycles), linked to sophisticated production methods Apart from these, mostly single speed in Ludhiana. Not many countries have a there is also a lack of know-how for special (such as CNC milling coupled with computer (non-roadster) bicycles (including chil- dedicated R&D centre for the bicycle indus- components, limited automation, limited aided design-based R&D, as in frame and dren’s bicycles) are produced. try, making this a distinctive characteristic design abilities, limited exposure to best for the Indian bicycle sector. The RDCBSM component designing) and concepts imported »»Government tenders for bicycles con- practices in production technology and has been established as an institutional from other technologies (such as hydraulic stitute a major fraction of the domestic the absence of an internationally accred- support centre to provide various facili- suspension and brake systems, disk brakes, demand for bicycles. These tenders aim ited standards system. ties to the industrial units, especially the auto and electric gear changing, microchip at procuring basic, low-cost bicycles for »»There seems to be limited backward small and medium-scale bicycle and parts sensing systems, specialization in tyre tech- the distribution of free/subsidized bicy- integration in the domestic value chain manufacturers, to enable them to upgrade nology, saddle manufacturing, gear changing cles to low-income sections of society, between the component manufacturers themselves and adopt modern production devices, folding bicycle design and electric especially in rural areas. States like Bihar, and OEMs. The larger bicycle-manufac- and quality control practices. bicycles). These have added further value to Karnataka, Chhattisgarh, Tamil Nadu, turing companies/OEMs look to procure higher-end modern bicycles (Oxer, 2000). Assam, West Bengal, and Kerala have »»The industry also has two main industry good- quality, economically priced compo- associations – the All India Cycle Manufac- taken up such schemes. nents from parts manufacturers, and often The pursuit of lightweight and high-strength turers’ Association (AICMA) and the United bicycles in newer, superior materials, and »»The production of premium, high-quality resort to imports if there is no indigenous Cycle and Parts Manufacturers (UCPMA). bicycles (mountain bikes, racing bicycles supply available from domestic manufac- advanced design, drives most upgrades in of lightweight materials such as alumin- turers. However, the OEMs are the main The Indian bicycle industry faces several the bicycle industry. This has introduced ium alloy) is limited, although bicycle purchasers of the predominantly steel challenges in terms of meeting the domes- a huge range of innovative equipment and manufacturers are increasingly venturing components produced by the manufactur- tic demand and becoming competitive processes in producing bicycles and parts, into this sector, given developing con- ers. Very few component manufacturers globally, especially vis-à-vis both cheaper that the Indian bicycle industry has not nec- sumer demand in Indian markets. How- have ventured into alloy components, and and superior bicycles and parts from for- essarily kept up with. At present, the Indian ever, the required aluminium tubes and very few have export channels. eign producers. The Indian industry doesn’t bicycle industry largely produces basic mod- special components for such bicycles are produce medium/high-quality premium els of steel roadster bicycles directed mostly »»For the export of high-quality premium sourced from other countries. bicycles from superior materials, which are to government tenders, children’s bicycles alloy bicycles and parts, there appear to demanded in international markets. In addi- and a very limited volume of premium bicy- »»The industry caters mainly to domes- be limited channels for marketing and tion, the growing domestic demand for such cles. A majority of Indian bicycle manufac- tic demand, i.e. exports are limited. The sales in international markets. A few parts bicycles is increasingly met by imports and turers are currently unable to make and sell absence of the production of premium, manufacturing companies have estab- established international brands. In order the type of bicycles demanded in global mar- high-quality bicycles and components (in lished one-to-one foreign collaborations, to become more competitive in domestic as kets, which are aesthetically and technically aluminium alloy, carbon and titanium) but such examples are limited. well as export markets, Indian manufactur- superior, are made from high-end materials, limits the Indian bicycle manufacturers’ »»The bicycle industry is also largely wanting ers must be able to overcome certain key allow multiple-speed settings and require capacity to export and be internationally of substantial policy support to channel technology/skill gaps, produce bicycles in several special components. competitive. Simultaneously, the domestic

16 | The Indian Bicycle Sector The Indian Bicycle Sector | 17 Given the way the Indian bicycle indus- The main industry needs include: try is currently structured, there are both demand and supply-enabling factors that 1. The availability of raw material (mainly must be ensured for the adoption of such aluminium) in appropriate grades, forms, technology, equipment and processes. quantities and prices to make the shift to “THE MUSTs” From the demand point of view, in order alternate materials viable. to initiate and sustain export-quality pro- for duction, domestic manufacturers must 2. Technical guidance and handholding to not only be aware of global best prac- adopt modern manufacturing processes EXPORTABLE BICYCLES tices adopted for technical, aesthetic and and best available technologies to pro- economic viability, but must also be able duce bicycles and components of export- to establish consumer confidence in the able and consistent quality, aesthetic quality of the products, and subsequently designs and economical pricing. develop international sales channels. From the supply point of view, bicycle and parts 3. An international marketing and selling manufacturers must bridge the gap in tech- channel, to ensure demand of Indian-pro- ALUMINIUM ALLOY nical and production proficiency for the duced bicycle components. target medium/high-end quality bicycles ATTRACTIVE (or other ‘light material’) DESIGN demanded by export markets and more 4. This could be aided with appropriate gov- recently, domestically as well. ernment regulations and policy support relating to import duties, material pric- Therefore, the Indian bicycle industry must ing, infrastructure, required standards, undergo a considerable improvement/shift domestic content and trade actions. in the type of bicycles/components currently being produced (soliciting a range of spe- Further elaborations of these requirements cific technical upgrading in the manufactur- are given below2: ing), aided with robust sales and marketing initiatives to establish itself in international markets and gain credibility domestically. 2.2.1. Availability of Raw Materials If Indian components become attractive to DURABILITY CONSISTENT purchasers of these ‘better’ bicycles, the One of the main challenges for the produc- manufacturing industry can compete with countries like tion of high-quality, premium bicycles in HIGH-QUALITY China and sustain, or even grow, its produc- India is the availability of the correct specifi- ATTRIBUTES tion. With such attractiveness and compet- cations of required raw materials, at reason- (finish, precision, itiveness, they will have a bulwark against able prices. mechanical operation, imports, and with new products they can functioning, etc.) expand the domestic market. At present, most good-quality bicycles in the global markets have aluminium alloy To facilitate such a transition, the key components, which should therefore be the industry-wide critical needs must be identi- focus of the Indian bicycle industry. Indian fied and addressed. While there are a num- component manufacturers mostly produce ber of industry requirements which, if met, steel components and are unable to initiate would boost competitiveness, it is impor- 2 This is not necessarily an exhaustive list, but pro- tant to identify what is essential for indus- vides an indication of the broad areas in which techni- try survival, sustained competitiveness and cal capacity building or institutional support would be quality improvements. valuable. This is based on the semi-structured interviews conducted as part of the diagnostic assessment

18 | The Indian Bicycle Sector The Indian Bicycle Sector | 19 Indian Bicycle Industry

the production of alloy parts because a) they material wastage) and usually requires sub- 2.2.2. Marketing and Selling 2.2.3. Technical Guidance/ are unaware of the correct grades/specifi- sequent treatment (such as heat treatment, Channel Support for Production cations to be used, and b) the appropriate cooling either through liquid chemicals or grades are not available, and/or are expen- air cooling) to become usable. A majority Indian SME component manufacturers are of High-quality Bicycle sive to procure in small quantities, as per of manufacturers lack the facilities and the predominantly suppliers for the Indian Components SMEs’ scale of production. For Indian man- know-how to appropriately select such raw OEMs. These SMEs thus operate within ufacturers to venture into the production material and employ appropriate heat treat- the domestic value chain and do not have Making an exportable bicycle (or component) of aluminium parts, they must have access ing/extrusion processes to engage in the established export avenues, with only has several aspects. The product must be to reasonably priced aluminium blanks, in commercial production of alloy parts. a few exceptions. For the Indian bicycle attractive, durable, made of aluminium alloy relatively small quantities, until this is sup- industry to hold ground in export markets (or other ‘light material’), lightweight and ported by corresponding demand/sales to Given the nature/structure of the Indian for both, its bicycles and components, manufactured consistently with attributes of a justify major investment. aluminium industry, obtaining small quan- dedicated efforts towards sales and mar- high-quality bicycle (finish, mechanical oper- tities of the appropriate grades and shapes keting are necessary. Assuming that the ation, durability, functioning, precision, etc.). Typically, the fundamental component of of aluminium has proven to be prohibitively component manufacturers were to over- Manufacturers must learn to process alumin- bicycles, the frame, is made from either 6061 expensive, especially for SMEs. This acts as come their technology/skill gaps in pro- ium for the frame and other components and or 7005 aluminium alloy (Bike-advisor.com, a hurdle for Indian component manufactur- ducing aluminium alloy parts and other in the longer term this strategy would apply to 2012). These alloys display superior malle- ers to initiate and sustain aluminium com- special components, establishing buyers other materials such as chromoly steel, tita- ability, formability, resistance to corrosion ponent production on a techno-economi- from global markets (international OEMs) nium and carbon fibre. The current challenge and fatigue, and result in stronger, lighter cally viable scale. As a result, large bicycle would be integral for export success. for the Indian bicycle industry (apart from frames. The grade of aluminium available in companies either import the aluminium While the Indian OEMs are large enter- finding an economical source of usable alu- India is 6063 (among other types) alumin- alloy parts they require, or the component prises with the necessary wherewithal minium and other materials and establishing ium alloy, which isn’t considered to be as manufacturers are forced to import raw to undertake sales and marketing func- export channels) is the ability to devise attrac- strong as the 6061 alloy3. material to venture into such production tions, the multitude of SMEs producing tive designs, and create a consistent, demon- segments, which is expensive, especially in bicycle components are largely unknown strably high-quality product. This would The aluminium alloy tubes currently availa- small quantities. brands. These do not have the capacity to entail adopting modern manufacturing pro- ble are typically 1.6 mm thick and are thus execute large-scale branding/marketing cesses and product-specific production best not of the requisite thickness for the bicycle Thus, the bicycle industry requires the supply activities for themselves, the knowledge practices to match international standards. industry which is 1-1.2 mm thickness. The of the correct grades/specifications of raw of points-of-sales in different countries or alloy tubes must subsequently be treated material (with a special focus on 6061 equiv- the necessary logistics. Such marketing It appears that in order to achieve this goal, and/or shaped or butted to become usable alent aluminium) in the form of thin-walled efforts would also expand/diversify the component manufacturers require technical by bicycle/parts manufacturers. tubes and appropriate production blanks. The buyer base for the component manufac- guidance and dedicated expert support in availability of such raw material and blanks turers. Thus, enhancing the selling ability the following areas (see following boxes for In addition to the frame, the bicycle is com- must also be aided with processing equip- through branding, quality assurance and a description): posed of many other aluminium parts such ment/facilities to render the metals ‘usable’ tapping common sales channels is impor- 1. Advanced know-how in modern produc- as the forged stem and hydroformed seat in the industry. This involves heat-treatment tant for the industry. Examples of one- tion techniques and technologies adopted post, handlebars and shift/brake levers facilities, hydroforming, forging, castings to-one foreign collaborations that enable in producing quality components and and crank sets. For these components, the and extrusions to supply usable produc- exports do exist, however, for the indus- modern bicycles provided material is also uneconomical tion blanks to component manufacturers. try as a whole, brand and image building to shape since it is not provided in appro- would need to be developed for sustained 2. Testing and certification guidance for priate grade and thickness, or in workably In the longer term, the issue of access to raw international sales. export markets small pieces (thus soliciting further sub- materials extends to other modern mate- 3. Design tractive manufacturing of components with rials, such as chromoly steel, carbon fibre 3 Based on inputs from industry actors during the and titanium, for manufacturers to venture diagnostic assessment. into higher-end premium bicycle models.

20 | The Indian Bicycle Sector The Indian Bicycle Sector | 21 Areas Needing Technical Guidance/Support for Production of High-quality Bicycle Components 1 2 3 Advanced know-how in modern production techniques and technologies adopted in Testing and certification guidance producing quality components and modern bicycles for export markets Design

The level of technology used in the »»Stickering process (automated/ such specialized components sup- To achieve export competitiveness and to meet Bicycle design is a multifaceted subject. The way in which Indian bicycle industry, specifically water-based, etc.) ply top-quality products in the mar- the corresponding product standards, Indian the bicycle intends to be used determines the require- by the component-manufacturing ket. Buyers specify the brand(s) components and bicycles must be rigorously ments of the design. Bicycle design takes into account » PLC automation in currently SMEs, is considered to be basic and » of these special components and tested and validated to assure customers of certain overarching requirements such as speed, safety, employed processes conventional. A lot of production pro- they therefore must be imported their quality and become integrated with global comfort, weight, precision and endurance, as well as cesses are largely manual (such as »»Raw material composition analysis for domestic bicycle manufacturers value chains. This implies that the industry aesthetic appeal. These factors drive decisions related welding and assembly), or operating and selection to put together premium, high-end must be supported by an exhaustive testing to material selection, interface between different com- with dated equipment. For component bicycles (thus driving up costs). The facility that provides testing and related ser- ponents, appearance, additional accessories, geomet- »»Total quality management manufacturers to be able to undertake need of the hour is thus two-fold – vices in keeping with dynamic industry trends. rics and required tooling and jigs. Indian bicycle and efficient production of higher-qual- »»Energy optimization firstly, there is a need to facilitate It is also worth noting that such services must parts manufacturers would thus benefit from developing ity components, and in superior technology sharing between Indian be priced reasonably, keeping in mind the the necessary expertise in developing aesthetically as »»Production layout; production plan- materials (such as aluminium alloy), ning component manufacturers and inter- large number of SMEs availing such services, well as technically proficient blueprints and the requisite the industry requires access to, and national producers of such compo- and must also be quick in delivery. design-sense. knowledge of, modern manufacturing »»Industrial engineering nents. Secondly, there is also a need methods and adaptation/optimiza- to develop the abilities of local man- For exports to various countries, component In such a context, component manufacturers in India tion of equipment to such methods. Manufacturers are also keen to learn ufacturers to indigenously develop/ manufacturers require testing services as per require upgrading with respect to: the process details of producing produce parts for, and subsequently various international country-specific stand- The manufacturing processes that are high-quality components of export wholly produce at least some of ards. The top priority, as expressed by the man- »»Aesthetic design: The production of bicycles is believed most relevant to upgrade the Indian quality, and the equipment required these high-specialty components. ufacturers interviewed, is the EN standard certi- to largely be based on fashion-driven technology, espe- industry at present broadly pertain to therein. Optimal production pro- fication. Manufacturers require a testing facility cially for the premium segments. Indian bicycle man- a) processing/handling of alumin- cesses tie together in establishing Indian manufacturers must be able to certify components and bicycles as per the ufacturers must be aware of the latest market trends, ium to produce frames and other production parameters for high-qual- to produce quality components not qualifying standards for sale in the respective what type of bicycles are being produced and how to components, and b) quality and pro- ity components. In the immediate just for the widely used segments of regions. Therefore, at present, the select bicy- create products that consumers demand. This aspect cess optimization in current opera- future, Indian bicycle component bicycles, but also for a wider range cle and parts manufacturers who produce for pertains to the overall look and feel of the bicycle and tions. In such a context, the industry manufacturers need to be able to of high-end bicycle models. Current export markets largely rely on international responds to evolving consumer preferences. Indian solicits technical handholding and produce major components (such know-how is limited vis-à-vis carbon bicycle testing labs for country-specific product bicycle manufacturers require exposure to the type of guidance in these key production as frames that are currently made of fibre bicycles, Titanium components, certification. bicycles that are being demanded and sold worldwide processes, as well as measures for steel) in aluminium for export mar- e-bikes and bamboo bicycles. and how to achieve those visual characteristics (surface production optimization. kets. In addition, they also need to be Manufacturers also require strong testing ser- finish, paint colours, frame shapes, etc.). There is also a able to produce critical components In addition to the above, a major- vices and support in the testing of: compo- need to enhance the packaging and presentation of the Some of the production processes for exportable bicycles. Thus, manu- ity of manufacturers have limited nents, most importantly now, made from alu- final products. As aesthetic design forms the basis of that are of key interest to manufactur- facturers need to learn the nuances awareness regarding the different minium alloy; plastic and rubber components; competitive advantage, the central idea is not necessar- ers and of importance to the indus- of each component that must now principles of product/process qual- environmental and chemical testing associated ily the provision of design services to the manufactur- try’s competitiveness are4: be made in aluminium (and/or other ity management, and the advan- with the different materials used, and the test- ers, but for the industry to be able to develop advanced materials), what the optimal configu- tages of integrating such principles ing of material finish. Since the use of reflec- design and development capabilities therein, in line »»TIG/MIG welding: rations/specifications for each com- in their operations. Typical factories tors on bicycles was mandated by the Indian with market trends and consumer preferences. »»Casting, forging, pressure die cast- ponent are, how to adopt the neces- have operational characteristics government, reflector testing has also become »»Industrial/componentry design: Different bicycles/parts ing, extrusion, hydroforming sary production processes, as well as such as high WIP (work-in-progress) an important need, with industry actors cur- require a variety of component geometries, material quality checklists/benchmarks that and stock, long waiting periods of rently taking support from automotive compo- selection, material behaviour analysis and component » Advanced coating methods/sur- » the components must meet. Apart personnel during different tasks nent testing labs for the same. interface, thus also determining the required tooling, face finishing/plating from the uptake of aluminium com- on the shop-floor, limited produc- jigs and fixtures as well as special purpose machines »»Injection moulding ponents, a proficiency in plastic com- tion-line monitoring for overall to achieve the desired configurations. The increased ponents (for mud guards, fenders, equipment effectiveness, planned application of design software and related tools (CAD, »»Painting (automated disc painting, back rests, etc.) is also required. vs. actual production, operator CNC machining, finite element analysis, etc.) and the effective manual painting, etc.) skills, etc.5 This has a bearing on the know-how pertaining to the application of the software »»Wheel assembly At present, Indian manufacturers do overall quality of the components/ to bicycles and specific bicycle parts, form the foun- not have the capacity/capability to bicycles produced. dation of technically sound designs and prototypes. »»Bicycle assembly produce certain special/critical com- The Indian bicycle industry requires such engineering ponents such as derailleurs, mul- 4 design assistance whilst venturing into aluminium com- This is not an exhaustive list – these are ti-speed gear mechanisms, spokes, indicative areas mentioned during the 5 Based on an assessment by Japanese ponents, special components, plastic parts and the interviews conducted during the diagnos- freewheels/cassettes, hubs, BB experts during a diagnostic visit to the tools/machining needed therein. tic assessment. shells, etc. Global producers of RDCBSM in February 2018.

22 | The Indian Bicycle Sector The Indian Bicycle Sector | 23 TOWARDS EXPORTABLE & HIGH-QUALITY BICYCLES

CURRENT PRODUCTION

• The industry caters mainly to domestic demand (mostly for government tenders)

• Bicycle production is focused on basic, low-cost roadster bicycles, made of steel.

• Lack of access to high-quality raw materials

• Poor manufacturing practices, and the usage of dated technology

• Limited automation, limited design • The availability of raw abilities, limited exposure to best material (mainly aluminium) practices in production technology in appropriate grades, forms, quantities and prices

• Technical guidance and handholding to adopt modern manufacturing processes and best available technologies

• An international marketing and selling channel

• Appropriate government regulations and policy support relating to import duties, material pricing, infrastructure, required standards, etc.

CRITICAL NEEDS

24 | The Indian Bicycle Sector The Indian Bicycle Sector | 25 DIAGNOSTIC ASSESSMENT OF THE RDCBSM AND THE INDUSTRY ASSOCIATIONS 3

The interventions of the UNIDO bicycle project 3.1. The Research and aim to boost the global competitive position of the Indian bicycle sector. The project aimed Development Centre to achieve this by strengthening the capacity for Bicycle and Sewing and capability of the RDCBSM and the industry associations to better support and guide Machine (RDCBSM) the industry, given the critical needs of the bicycle and parts manufacturers. Such capac- The RDCBSM was set up in 1983 by the Gov- ity upgrades of the target institutions would ernment of Punjab, with the assistance of include both soft interventions (skills devel- UNDP/UNIDO, with the aim of assisting the opment, training, capacity building, technical industry to adopt innovative technologies workshops, etc.) as well as hard interventions for improvements in productivity and prod- (procurement of equipment for the testing uct quality. It was fitted with modern equip- facility of the R&D centre). ment for manufacturing, testing, calibration and training activities. The main objectives The diagnostic assessment of the RDCBSM of the centre are to: and the associations was conducted with 1. Create and provide facilities for increasing the aim of correlating the needs, demands, and diversifying production expectations and challenges of the Indian bicycle industry (as identified in Chapter 2) 2. Achieve the optimum productivity levels and these organizations’ responses to, and in the manufacturing centre capabilities in, meeting these demands 3. Upgrade quality compatible with interna- and expectations. tional standards

In context of the identified requirements 4. Provide professional and job-specific of the industry, the technical diagnostic training assessment mainly aims to evaluate the current service portfolio and expertise level of The RDCBSM is meant to provide services the RDCBSM, positioned as the nodal tech- such as: marketing and consultancy; prod- nical institute for the industry. In addition, uct design and development; a precision the report also aims to identify how the cur- tool room; testing and calibration; special rent service portfolio can be strengthened, purpose machine building; mass production and the requisite capacity building efforts machines, and relevant training to the indus- for the same. Therefore, this section pro- try. The focus of the centre is on SMEs in the vides an overview of the current institutional bicycle industry that need a common facility support system that the RDCBSM (and the for some of these services and require tech- associations, as applicable) provides to the nical guidance for production. industry in terms of technical guidance, as well as the main shortfalls in the provision A brief description and analysis of the centre’s of such support. service portfolio is given in the boxes below.

The Indian Bicycle Sector | 27 Description and Analysis of the Centre’s Service Portfolio 1 2 3 Product design and development Precision tool room and Testing and calibration common facilities The RDCBSM is mandated to under- This process would be aided by The testing and calibration facilities of include more of the component-specific material, however, tests must be executed take the design and development of an increased understanding of the The RDCBSM is equipped with the RDCBSM are duly accredited by the tests, to now form this more exhaustive cognizant of material behaviour – a skill new or modified products, jigs, fix- applications of hydraulics and pneu- high-precision CNC machines and National Accreditation Board for Testing coverage of tests. An exception to this that must be developed at the RDCBSM. tures, tooling and gauges, prototypes, matics, aerospace engineering the general-purpose tool production and Calibration Labs (NABL; ISO/IEC- list is the code of practice for the packag- and complete tools for the adoption finite element analysis (and similar machines. These include: a jig boring 17025) and the Bureau of Indian Stand- ing of bicycles for export under IS, that is A significant requirement of the industry of innovative and latest manufactur- engineering principles) in system machine; cylindrical and internal grind- ards (BIS). As per the NABL accreditation, not currently available at the RDCBSM. actors looking to enter export markets, ing. To date, the R&D centre has intro- design. The design competencies ers; surface grinders; a CNC vertical the RDCBSM labs carry out mechanical is a facility for testing and certification duced 60 special purpose machines must also be expanded to provide mill; a CNC lathe; tool and cutter grind- testing of metals and alloys, chemical The R&D centre’s bicycle test labs are against major international country-spe- (SPMs), 70 testing equipment and such tooling/machining support for ers, among others. The tool room has analysis (Fe, Cu and Al, base metals and accredited to perform parts 1-9 of ISO cific standards (such as EN, ASTM, DIN, 35 cold forging tools. They have also plastic components. developed 5 tools for cold forging of alloys), calibration of measuring instru- tests for bicycles. These tests largely JIS, BS). Currently, the RDCBSM’s bicycle filed 3 patents of designs developed parts, manufacturing of 25 test equip- ments and gauges and the testing of bicy- cover safety requirements for city/trek- testing labs only provide testing for select at the centre. In a broader sense, the design and ment, 6 special purpose machines cles/bicycle parts as per ISO:4210 (parts king bicycles, young adult bicycles, and tests from these standards, equivalent to development team must also be and 3 low cost automation equipment. 1-9) and ISO 8098. Under the BIS certifi- mountain and racing bicycles, and test the corresponding ISO tests. However, the The R&D centre has a CAD section engaged in active research of the lat- cation, the RDCBSM provides testing for methods for braking, steering, frames bicycle testing labs are not certified for the with the latest software (AutoCAD, est bicycles (i.e. frame designs, aes- The workshop at the RDCBSM under- bicycles and bicycle parts, household and forks, wheels and rims, pedal and complete suite of tests under each of these Solidworks, Delcam, Pro-E, Master- thetic characteristics of bicycles sold takes the manufacturing of press tools, and industrial sewing machines (IS:1610 drive systems and saddle and seat posts. international standards. It is worth noting Cam, Catia, etc.) to design engineer- internationally), leading to deduc- dies, jigs, fixtures, inspection gauges, and IS:12109 respectively), zig-zag sewing The RDCBSM now has the facility to test that the standard documents (which are 8 ing components and sub-assemblies, tions as to how these geometries can test rigs, and the reconditioning of machines (IS:15449) and complete test- for lighting and retro reflective devices to be purchased) are not available at the bicycle parts and hand tools testing be best achieved, and guiding the dies for cold forging of components, ing of steel as per IS:1875. In addition, the (ISO 6742; parts 1-5). It is important to RDCBSM for them to provide guidance to equipment, special purpose mass pro- industry to do the same. not only for the bicycle industry, but test labs at the R&D centre provide testing note that the scope of the tests that fall information-seeking industry clients. As duction machines for bicycle compo- predominantly for the automotive and facilities for spectroscopic analysis of met- under ISO certifications include a large the only bicycle-focused R&D centre pro- nents and inspection gauges, fixtures While the design engineers are well- other engineering sectors. Thus, the als and alloys and mechanical testing of number that are component-specific, viding test facilities, the bicycle testing and tools. Over the years, the RDCBSM versed with the design software, orientation of the tool room and the tor steels, structural steels, tubular prod- currently not provided by the R&D centre. lab must not only be accredited to carry has developed a range of high-utility the staff needs a greater orientation common facilities (that include CNC ucts, cold and hot rolled steels, fasteners, out tests for various international stan- SPMs, special test rigs and cold forging towards, and understanding of, the vertical/horizontal milling, lathes and fixtures and assemblies. For the tests that are available at the dards, but also provide cross-compara- tools for the industry. Bicycle and parts real-time implications of design speci- forging machines) to the bicycle indus- RDCBSM’s testing labs, it appears that tive analyses for these various standards. companies purchase the machines, fications on bicycle component quality try could be a function of increased The RDCBSM’s testing and calibration the personnel are well versed with the ISO test equipment and tools that are also and overall product performance. The explorative investigation into the facilities are one of the key services standards and requirements. However, Another aspect in equipping the bicycle manufactured at the centre. existing design focus at the R&D centre requirements of adapting tools and provided to the industry. The mechan- there is a need for further fine-tuning in the industry to meet export requirements is must be expanded to factor in optimal machines for aluminium and other ical test labs, the standards room and execution of these tests (including cali- environmental/chemical testing. While The centre has a dedicated design technical configurations for individ- alloys, tooling for injection moulding, the coordinate measuring machine also bration of the equipment, measurement the R&D centre’s labs are equipped with and development team, comprising ual bicycle components, component forging/casting/welding needs of spe- cater to the needs of automotive and of results and avoidance of common mis- safety/mechanical tests, manufacturers engineers proficient in CAD/CAM. interfaces, and metallurgy and mate- cific components, adoption of low- other engineering industries, as is the takes in test execution) to make the R&D still require facilities to conduct validation Apart from the SPMs and tools devel- rial behaviour for bicycles/parts. This cost automation equipment for spe- case with the chemical/spectro anal- centre staff a commanding authority of of materials used vis-à-vis determination oped at the R&D centre, the design becomes increasingly relevant with the cific processes – all with direct relation ysis-based testing, where clients from certification and validation of bicycles and of heavy metals (lead, cadmium, chro- and development team also provides adoption of newer materials, and the to the bicycle-manufacturing units. the other industries outnumber bicycle/ parts. This fine-tuning would cover aspects mium VI), morphology analysis, determi- tailor-made solutions for jigs and fix- associated adjustments to manufac- parts manufacturers. such as: appropriate force application for nation of phthalates (plasticized materi- tures based on industry requests, as turing processes (such as forging, cast- In the context of the industry requiring different fatigue tests; maintaining linear/ als) and restriction of PAH, a set of services and when they arise. ing, welding, etc.), while also keeping appropriate forms/shapes of newer The bicycles supplied for the government rotational degrees of freedom; how to not currently available at the RDCBSM. in mind aesthetic appeal/attractive- raw materials (mostly alloys), the tool tender-based orders (for steel bicycles and ensure load cells are free of radial loads/ However, the innovative development ness of the final product. Thus, the room at the RDCBSM is not equipped components) must be certified by a third shear stress/torques; verification of indi- In addition to the above, there are sev- 9 of new products and dedicated efforts staff would need to be able to develop or sufficiently skilled to act as a facility party as per IS standards, a function that cations on control units, etc. In addition, eral areas for improvement in the test towards independent prototype devel- superior skills in making accurate dies for processes such as hydroforming, the RDCBSM fulfils for the industry. Thus, there is also a lack of knowledge regard- labs that ought to be implemented by 10 opment seems to be limited. Apart to provide the new varieties of required heat treatment of alloys and extru- the IS testing facility is a common resource ing endurance testing – to evaluate the the RDCBSM : for better repeatability of from the designs/SPMs developed to jigs and fixtures in keeping with the sions for production blanks at present. for the OEMs catering to these tenders strength of tested components, beyond test results testing machines should be date, the design and development ver- aesthetics/technical specifications of adhering to IS standards. The IS standards the levels defined by the ISO standard. fixed on the ground to ensure minimum tical of the centre should be in a posi- the final product. It must also be considered that a comprise a wide range of tests for gener- interference/distortion; the layout of the tion to undertake more and continuous majority of the equipment stationed al-purpose bicycles, most of which are The staff also requires guidance on how bicycle test laboratory could be modified exploratory design deliberation-based Such an orientation of CAD/CAM skills at the tool room/common facility is aligned with the corresponding ISO tests. to execute these safety tests for bicycle in line with the sequence in which vari- projects, to investigate and create would enable the RDCBSM’s technol- largely dated (some being in operation From this list, the R&D centre is certified components in different materials such ous tests are to be performed; wires and ingenious solutions to common indus- ogy development competencies, as since the early 1980s) and requires to execute tests such as those for: bicycle as aluminium alloy, (and in the future, car- chords associated with test lab equip- try problems and manufacturing pro- the staff would thus be equipped to urgent upgradation/replacement.6 tube valves; frames; rims; handlebars; bon fibre, titanium and other alloys). The ment should be secured/covered; jigs cesses. This would make design and engage with the specific challenges Upgrading the equipment and man- seat pillars; pedal assembly; hub assem- ISO tests are not designed for any specific to be utilized for testing must be stored development an ongoing process, and of bicycle/parts manufacturers and agement would provide an ongoing bly (R-type); spokes; axles; cranks and 8 The equipment for reflector testing has been appropriately to avoid damage and con- have a bearing on the nature and quan- guide them through appropriate solu- valuable service for casting, forging, chainwheels; front forks; cycle/rickshaw installed under the UNIDO bicycle project sequent interference in accuracy; house- (September 2017) and the application for tity of SPMs/tools/fixtures developed tions. This would also enable the R&D etc., as per the needs of the industry. pneumatic tyres; steering head assembly; keeping of testing equipment/lab should by the centre, in line with new materi- centre to provide more well-rounded mudguards; reflectors; specification for such a certification has been submitted to be done on a regular basis, and SOPs for NABL (May 2018). als being adopted, the corresponding design support to SME clients. padlocks; luggage carriers; steel balls and 9 each equipment must be displayed. 7 These examples are in line with the findings production processes involved and the 6 As per the provided list of equipment (with chains. The RDCBSM has recently applied of the lab session conducted at the RDCBSM 10 Based on an assessment by Japanese resulting requirement of tools to adopt date of installation of equipment stationed to the BIS for an extension of scope to by Mr. Marcus Schroeder, MD – EFBE, Ger- experts during a diagnostic visit to the those processes. in the tool room) 7 In September 2017 many (June 23 2017). RDCBSM in February 2018.

28 | The Indian Bicycle Sector The Indian Bicycle Sector | 29 Description and Analysis of the Centre’s Service Portfolio

4 3.2. Industry Associations mandatory by the Supreme Court of India), Training and related issues. The AICMA also has an The bicycle industry is supported by two IPR committee for the resolution of intel- The RDCBSM also provides engineering and manage- The CAD/CAM training courses include software-spe- industry associations: The All India Cycle lectual property-related disputes among its ment skills training programmes for the industry. cific courses in the areas of: CNC milling and turning; Manufacturers’ Association (AICMA) and members. Since the AICMA members are advanced CAD/CAM and CNC machines; industrial the United Cycle and Parts Manufacturers the industry-leading OEMs, they are at the The centre runs an R&D polytechnic college offering training; tool design, and advanced manufacturing (UCPMA). Both the associations provide forefront of technology adoption, within the diploma (certificate) courses for engineering indus- processes. These are areas in which technical per- institutional/advocacy support to bicycles context of the Indian bicycle industry. Thus, tries. These courses are certified by the All India sonnel of bicycle/parts-manufacturing companies and bicycle parts manufacturers, and their with adequate technical consultation, the Council for Technical Education (AICTE). The courses seek additional training, and thus match the indus- offered are: try requirements. Other industrial short-term courses interventions and support are inherently less AICMA is positioned to facilitate the requi- cover: GAS welding; arc welding; MIG/MAG welding; ‘technical’ in nature, vis-à-vis the RDCBSM. site industry-wide action as well as dialogue »»A three-year, full-time regular diploma course in a) TIG welding; quality and inspection; testing and cali- with various stakeholders. mechanical, b) automobile and c) computer engi- bration, and maintenance-fitter mechanic training. The AICMA represents large-scale Indian neering. These courses are also available in a part- bicycle manufacturers, contributing to 85% The United Cycle and Parts Manufacturers time, four-year format. The short-term courses offered at the RDCBSM, do of the bicycle production in the country. Association (UCPMA) is among the larg- »»A one/two-year regular certificate course, for voca- not necessarily cover an exhaustive range of topics The aims and objectives of the association est associations worldwide in terms of the tional training for a) machinists, b) machine mainte- pertaining to various manufacturing processes, as include a) protecting the interests of the number of members (more than 2250 MSME nance and c) quality assurance inspector. required by the bicycle industry. In addition, there is member companies, b) promoting cycling in members). Similar to the AICMA, the primary immense utility of developing more specialized cur- India, c) coordinating the overall growth and objective of the association is to bring about The diploma courses offered at the R&D polytechnic ricula for upgrading worker skills and overall produc- college are oriented as general engineering courses. tion practices, in keeping with changing trends, dif- development of the Indian bicycle indus- sustained growth of the Indian bicycle indus- There is limited bicycle industry orientation in the ferent materials and best available technologies for try, d) acting as a think tank for spearhead- try, with enhanced focus on the needs of courses delivered, i.e. limited coverage on bicycle these courses to be relevant to the industry. Increased ing innovation, transformation and a global component manufacturers. The association engineering, component geometrics, assembly, mate- support vis-à-vis design and development of specific outlook for the Indian bicycle industry, and works to safeguard the common interests of rials and design. To supplement the engineering prin- bicycle components (which is currently not a part of e) supporting the building-up of a bicy- the industry members, to communicate with ciples covered in the existing courses, the graduate the training portfolio) using these tools would provide cle-friendly ecosystem in India. The associ- the government regarding the main chal- students would benefit from a greater orientation of superior utility of these courses for the industry. ation is structured into several committees lenges and requirements, and also facilitate the syllabus towards bicycle engineering, akin to the that work towards policy-related issues in the participation of the Indian bicycle indus- course for automobile engineering. In being able to deliver the necessary training to the the following areas: taxation, demand, com- try in international trade fairs for increased industry, the trainers and lecturers delivering the train- merce and technical. Specifically, the Tech- exposure. The activities of the association Apart from the diploma/certificate courses provided ing must also undergo a reorientation towards bicycle by the polytechnic college, the R&D centre also pro- engineering and production, to prepare course con- nical Committee essentially looks after advo- are largely advocacy and policy focused. vides a range of short-term skill development courses. tent and curricula in line with the bicycle industry’s cacy-related actions pertaining to standards, The UCPMA also runs an Industrial Training These are either CAD/CAM courses or industry-spe- needs, and be equipped to deliver these courses. The any component-specific discussions with Institute (ITI), under which basic computer cific industrial training courses. skill level requisite for trainers to effectively deliver an industry-wide implication (e.g. the case courses are offered to young trainees. such courses to the industry is currently lacking. of use of reflectors on bicycles being made

5 Consultancy

The consultancy function of the RDCBSM is meant to technology sharing. Thus, the current skill level, as per include guidance in the areas of productivity and qual- the current market requirements and developments is ity improvement, low-cost automation, material selec- lacking. As a result, the consultancy function is not a tion and failure mode effect analysis (FMEA), identi- dynamic service available to the industry for manufac- fication of testing needs and resource identification turers to gain direction pertaining to suitable upgrades. for the industry. This function is carried out in some Services such as providing feasibility reports and capacity at present, wherein the industry comes to the similar analyses are also not provided at present (or R&D centre for select trouble shooting assignments. have been discontinued). As a technical knowledge However, the RDCBSM hasn’t necessarily kept abreast resource for the industry, and in order to be able to with global market developments and the associated provide expert guidance, the staff of the RDCBSM must production practices, and is therefore not in a position first become proficient in best available technologies to provide guidance to the industry for relatively new and production processes, to inspire confidence in the products and technologies and facilitate the necessary industry and produce valuable guidance.

30 | The Indian Bicycle Sector The Indian Bicycle Sector | 31 RECOMMENDATIONS 4

4.1. Industry-wide To supplement these supply-related needs, the bicycle industry also requires favourable Recommendations infrastructural and policy support.

The central need of the Indian bicycle indus- While a number of recommendations and mar- try is to be able to produce and sell techni- ket/capacity building initiatives would prove cally and aesthetically superior bicycles and to be valuable for the industry, the essential components that meet competitive quality recommendations for industry survival would standards. This increased competitiveness include a) the establishment of a raw mate- can come from several shifts in the type and rial bank (mainly aluminium in appropri- quality of bicycles being made – medium to ate grades, forms, quantities and prices), high-end bicycles that qualify for export mar- b) technical guidance and handholding to kets and are thus demanded domestically as adopt modern manufacturing processes well, and to enhance the currently produced and best available technologies to produce segment through innovative new products bicycles and components of exportable and (such as electric assist hardware) and skills consistent quality, aesthetic designs and (e.g. advanced engineering) to optimize the economical pricing and c) focused market- basic bicycle models. For this, manufacturers ing/common node for international sales to must have the know-how/capability and sup- ensure the demand for Indian-produced bicy- port infrastructure to produce better-quality cle components. This could be aided with d) bicycles, and also ensure that this capacity appropriate government regulations and pol- upgrade occurs within a wider ecosystem that icy support relating to import duties, mate- fosters innovation and entrepreneurial initia- rial pricing, infrastructure, required stand- tives and has increased support and channels ards, domestic content and trade actions. for domestic and international sales. Thus, the key recommendations for rapid indus- As highlighted earlier (Chapter 2), there are try improvement fall into the categories of: a range of identified industry-wide needs 1. Material bank (and all associated services) including availability of the requisite raw materials, vigorous sales and marketing 2. Technical assistance and training (produc- mechanisms to enter global markets and tion processes; tooling; component-spe- technical assistance for the mastering of pro- cific best practices with an added focus on duction techniques and knowledge of best special components); bicycle engineering; available technologies (technology shar- exposure to new and emerging technolo- ing) for: specific components and materials; gies; testing services; design, etc.) design competence; robust testing and cer- 3. Focused marketing functions and common tification guidance, and technology devel- node for sales opment for new types of bicycles/products. 4. Enhanced advocacy to the government

The Indian Bicycle Sector | 33 Industry-wide Recommendations 1 2 Material bank for supply of appropriate grades of raw material Expert technical assistance, guidance and training

(management and worker levels) Given the challenges in accessing raw Not only would this agency be able The material bank would be a com- The Indian bicycle industry must be This would entail: in modern manufacturing pro- materials (with a special focus on alu- to procure large quantities of alu- mon resource pool/common facil- supported in upgrading its produc- cesses and handling of equip- minium) in the appropriate specifica- minium, allowing for the cost-com- ity for the industry. Manufacturers tion. As highlighted in Section 2.2.3, »»Deployment of experts for on-site ment. The training focus could tions and economical pricing, a petitive onward supply to bicycle would be able to place orders for manufacturers must be supported guidance, consulting and prob- shared also include business, sales and to procure component manufacturers, but it the quantities of whichever blanks towards the uptake/adoption of the lem-solving as support in pro- material bank and facility marketing courses. the necessary raw material and provide would also be able to ensure that they need, and initiate produc- modern manufacturing processes duction processes. The industry corresponding processing facilities, as the bicycle industry automatically tion accordingly. The material bank and equipment that would enable should be supported with experi- »»Facilitation of partnerships for appropriate for the materials provided, has access to the correct grades and would overcome the major hur- them to produce components and enced industrial experts offering technology sharing- various pos- would be immensely useful for the quality of aluminium. dles currently faced by the man- bicycles that can compete in export relevant and affordable consult- sible channels of technology shar- Indian bicycle industry. The availability ufacturers, looking to enter alu- markets (mostly related to the adop- ing support for production prob- ing can be envisioned such as 11 of appropriate ‘blanks’ for manufactur- b. A warehouse: To store the pro- minium component segments, or tion of aluminium, achieving good lem-solving and upgrading. seeking foreign partners for joint ing is a major component of cost-effec- cured materials to be supplied to those who are currently import- appearance, and sustaining produc- »»A centralized facility for the ventures – international compa- tive production. Component manufac- the industry. ing expensive aluminium and los- tion consistency), and to develop demonstration of modern manu- nies who know what the customer turers must have access to ‘raw pieces’ ing out on cost competitiveness. new products and enter product seg- facturing processes/techniques. needs, who will give clear specifi- or desired tubes or sheets of the mate- c. Processing facilities: The material ments with advanced engineering. This could be a pilot facility to cations for needed products, and rial in question, in the right size, shape bank would also include a common To set up such a material bank, sev- produce and display sample com- possibly minor technical assis- and thickness, to be able to efficiently facility to process the acquired raw eral options could be considered: There are two goals to be pursued ponents or even complete bicycles tance, then provide a long run of derive the required component out of material into usable forms for the simultaneously: to the industry. This facility should recurring orders. Those partners » Contracting an external sourcing the blank. This would minimize wastage industry. » also play a role in supporting the will have taken on all the design, company: This would entail iden- in the production process, as the blanks » This aluminium then has to be a. To develop and produce bicycles industry in design development. marketing and sales challenges. » tifying and engaging an alumin- would already be oriented towards the converted into production blanks, and components in superior mate- As a resource for the industry, this This will probably be the type of ium-producing and processing component being produced. namely tubes for bicycle frames rials and desirable designs, as per entity would play an important role knowledge exchange that would company to provide the necessary and handlebars, rim cross sections, exportable standards, as well as in sensitizing manufacturers as to take place under the proposed raw material supply to the bicycle 12 The material bank would broadly com- and approximate shapes of hub to achieve production efficiency. what aesthetic designs are pop- Cycle Valley in Ludhiana. industry. This effort would have prise: shells, handlebar extensions, ped- b. Product development for domes- ular globally, and how to achieve to be coordinated by a neutral »»A competent and rapidly-re- als, cranks, etc. in preparation for tic markets: This could involve these looks and configurations. agency to procure the aluminium, sponding tool room to supply pro- a. A purchasing agency: To procure raw forging or machining by the man- using advanced bicycle engi- in the large quantities required, » Dedicated efforts of a centralized duction tooling, moulds and dies materials from various agencies and ufacturers. Extrusion is the central neering to reduce manufacturing » by multiple manufacturers, and agency towards R&D and product/ corresponding to the dynamic providers in large quantities, and need, because it can provide tubes costs, develop unique features provide the supporting process- technology development to dis- requirements of jigs and fixtures supply the requisite small quantities for frames and rim sections, plus for the basic roadster category or ing facilities (heat treatment, seminate technical and theoretical for different parts. demanded by component manufac- a great many other shapes suita- e-bikes and economical electric hydroforming) at prices that allow pre-requisites of the associated turers. This directed procurement ble for pedals, possibly hubs and assist hardware for bicycles/tri- In the above context, the RDCBSM, for SMEs to avail these services. production processes. would ensure that manufacturers cranks, etc. Permanent mould cast- cycles and rickshaws. as the nodal technical institution for have access to the right specifica- ing is also highly valuable, provid- »»Alternatively, a collaborative unit »»Focused support for companies to the industry, is positioned to be the tions of the different raw materials ing parts for brakes, derailleurs, etc. could be set up to perform this In order to facilitate the achievement upgrade and certify their bicycle instrument for the delivery of a num- required for various bicycle com- function for the industry. This of these goals, bicycle and compo- components and frames to world- ber of these recommendations. As » As the adoption of aluminium ponents, and at reasonable prices. » would mean that an entity is estab- nent manufacturers solicit support, class standards. That support is evident in the diagnostic assess- would be new for most compo- lished, specifically for the opera- i.e. there is a need for comprehensive should include rapid quality test- ment of the RDCBSM, there are sev- nent manufacturers, the in-house The material bank could act as tion of a material bank and versa- technology and knowledge transfer ing, product benchmarking and eral gaps in the skill, knowledge and capabilities to process aluminium a sourcing agent for the various tile extruding and casting lines to to the industry. In terms of volume, superior guidance for international facilities available at the R&D cen- would be limited, and entail capital materials required by the bicycle serve the entire industry. Such an the bicycle cluster in Ludhiana is product certifications. tre, however, with appropriate skill investments in machinery for the industry such as aluminium, steel entity could be conceptualized in dominated by component-manufac- development, capacity upgrades same. Depending on demand, the (especially high-strength steel such a number of ways – this could be turing SMEs that do not necessar- »»Provision of comprehensive and expert support, the RDCBSM shared bank should provide the as chromoly steel, carbon fibre, tita- a subsidiary of the RDCBSM with ily have access to or knowledge of training to the industry that not could possibly play an important infrastructure for the conversion of nium, etc.). However, in light of the industry contribution and dedi- the latest industry developments only includes bicycle engineer- role in the delivery of technical the procured raw material/ingots required upgrade of a majority of cated management; alternatively, and market trends, and thus solicit ing courses for young graduates, assistance, guidance and training into tubes, extrusions, castings or component producers to aluminium, it could be a government-funded expert guidance in adopting mod- but also for technical personnel to Indian bicycle and parts manu- other appropriately shaped/sized and given that obtaining it has been facility for the industry, partnering ern production practices and tech- 11 facturers, especially the SMEs. Such blanks. This facility could consist of: Some of the key interest areas include: expressed as particularly prohibitive with other public-sector enter- nologies. In order to support the TIG welding, weld inspection, PLC automa- potential upgrades for the RDCBSM in terms of retail pricing, the mate- • An extrusion press prises that supply these raw mate- industry as a whole, there must tion, advanced coating (painting) systems, are highlighted in Section 4.2. rial bank should be initiated with • Permanent mould foundry rials; or, a special purpose vehicle be a centralized effort to facilitate low-pollution bright plating, polymer identifi- a focus on aluminium. This would • Heat-treatment facility for alu- (SPV) could be established with the provision of the required ser- cation, injection moulding defects, die design entail conventional alloys like 6061 minium vices to the industry, be it techni- (injection moulding, extrusion, hydroform- industry contributions dedicated ing, permanent mould casting, forging), alu- as well as modern compositions • Hydroforming facility as neces- towards collective raw material cal consulting, expert handholding, minum extrusion and permanent mould cast- such as Duralcan. Entities such as sary (or even procurement of procurement and distribution. testing facilities, market research, ing, heat treating, production layout, TQM, NALCO and HINDALCO are possible hydroformed tubes which, as per or any other such requirement. electric batteries, motors, and controllers. 12 Ref: Cycle valley background documents. source companies for this in India. industry units, are also available)

34 | The Indian Bicycle Sector The Indian Bicycle Sector | 35 Industry-wide Recommendations

3 Marketing/common node for selling

The Indian bicycle industry must not purchasers would be willing to under- marketing itself; building credibility; only undergo a considerable improve- take procurement of small amounts engaging Indian manufacturers to pro- ment/shift in the type of bicycles it of differing origin. duce a consistent high-quality prod- produces (soliciting a range of spe- uct and selling effectively. This vol- cific technical/production upgrada- In essence, an institution/entity untary arrangement would minimize tions), but must also be aided with must be able to provide component duplicative efforts and expenses, robust marketing initiatives to estab- manufacturers with the export sales catapult brand awareness of Indian lish itself in international markets. and marketing functions and sup- products, provide negotiating and ful- port, similar to how Indian OEMs do filment power, and rigorously control Assuming Indian manufacturers can it domestically. This would involve quality standards of the participat- cost effectively produce a high-qual- a nodal point of sales, warehousing ing units. In effect, it would have to ity desirable product (supported by facilities in various global locations play the role of a large bicycle com- availability of affordable materials, to reduce transit/lead time, quality pany with outsourced manufacturing. process and engineering tweaks, assurance to customers, and brand and objective standards to ensure positioning and establishment. For- The unified brand proposal is a col- appropriate quality), appropriate eign partners and individual collab- laborative endeavour and can only be market orientation and branding are orations might play a role for some effective if many component manufac- an urgent and necessary change to companies, and Indian OEMs might turers elect to participate and contrib- enter export markets and establish take steps in those directions as ute to create such an entity. This initi- consumer/buyer confidence. well. However, a coordinated sales/ ative would operate in parallel to the marketing channel would signifi- existence and operation of the exist- The inclination of export custom- cantly help the component manufac- ing brand holdings of the participating ers (both individual bicycle custom- turers minimize ruinous competition manufacturers. The point of such col- ers, and the shops or distributors amongst themselves, and collabora- laboration would be to establish sales who serve them) to be drawn to rel- tively achieve the greatest efficien- channels for the Indian industry as a atively small, unknown/un-estab- cies and brand credibility (there- whole, until brand value and quality lished brand names, with a limited fore increasing sales and profits). assurance are established. The brand guarantee of continued operation must incentivize individual manufac- and quality verification would intu- This could possibly be achieved by turers to qualify as brand suppliers, itively be limited. In addition, a sin- component manufacturers coming and develop an equitable formula for gle modest-sized company may only together into a single brand. This awarding orders. In the long run, this be able to supply a small fraction of brand entity would undertake the should develop into a self-sustain- the needs of a distributor or foreign work of: following trends; establishing non-profit operation that goes on OEM – and it is unlikely that these ing presence at bicycle trade shows; as long as companies find it useful.

4 Advocacy and action for key issues

The Indian bicycle industry has the cycling infrastructure support, promo- steel, supporting innovative concepts technical and production capacity to tion of cycling culture, bilateral trade such as the e-assist hardware, would grow and diversify its product base understandings with various bicycle/ definitely help Indian manufacturers. and quality standards. For the bicycle parts-producing countries, govern- With suitable technical guidance from industry to grow into its potential, it ment investment, trade practices, and the RDCBSM, the coordinated efforts must be supported by several demand consumer subsidies, to name a few. of the AICMA and the UCPMA repre- and supply enabling factors. Active sentatives would definitely go a long advocacy efforts would be immensely With a focus on production/supply way to ensure that the appropriate useful for demand-related factors factors, increased advocacy for the enabling factors for bicycle/ compo- such as freight charges for operating norms for compliance to Indian stand- nents manufacturers to adopt modern from a dry port such as Ludhiana, ards in India, amending government manufacturing processes are in place appropriate import duties and mini- tenders to include bicycle/compo- to become globally competitive. mum support prices for raw materials, nent specifications not restricted to

36 | The Indian Bicycle Sector The Indian Bicycle Sector | 37 Recommendations

4.2. Recommendations for the RDCBSM

The Indian bicycle industry is uniquely a resource as per the changing needs of the Strengthened consultancy services positioned in that it has a nodal technical industry. Such strengthened capacity, com- agency, the RDCBSM, dedicated to the sec- bined with appropriate collaborations with 1. Engagement of external experts 2. Expertise building and knowl- Areas for general manufacturing tor and acting as an instrument for R&D as leading technical experts and international edge transfer support could include roll forming well as for the provision of the relevant sup- technical institutions will facilitate the requi- The R&D centre should be a of new tubular cross sections, the port services required by the industry. Espe- site technology and knowledge transfer that knowledge resource to support For the centre to provide technical interaction of a steel weld seam cially for the Ludhiana cluster, the centre manufacturers, especially the SMEs, need. the industry to develop and pro- guidance to the industry, there is a with tube forming, precipitation acts as a centralized focal point to provide duce bicycles and components in need for capacity building and skills hardening of aluminium alloys, valued services such as testing, tooling and In such a context, there is a wide range of superior materials, as per export- development of the RDCBSM’s cold forging of higher-strength training. This is increasingly relevant for the services that the R&D centre could provide, able standards and desirable engineers, working across vari- materials, quality of plastic injec- designs, as well as to achieve ous departments. This training of tion moulding, quality of paint segments of the industry that are not able especially in the context of the industry-wide production efficiency. In order to trainers will enable the RDCBSM to finishes, less-polluting bright to invest in independent exploratory R&D, recommendations made in Section 4.1. This effectively provide such expert effectively guide the industry and plating, and the specification of large-scale equipment, or for industry-wide section lists recommendations to constitute a guidance and technical assis- facilitate the necessary knowledge motors and batteries for elec- needs that solicit a common facility. more robust service portfolio for the RDCBSM. tance to manufacturers, there is transfer. Some of the key areas in tric-cycle functionality. The recommendations highlight the possible a need to engage external, qual- which the RDCBSM would require There are several shortfalls in the service roles the RDCBSM could play, additional ser- ified experts with relevant man- training are: 3. Audits and quality-related per- portfolio of the RDCBSM, as well as sev- vices the organization should be providing to ufacturing experience in certain formance assessment Material behaviour of aluminium eral areas in which the technical knowledge effectively support the industry and the addi- key areas at the RDCBSM, as the »» requisite expertise is currently alloy and the requisite process- The RDCBSM should be in a posi- and proficiency of the RDCBSM personnel tional skills/capacities that will be required ing (e.g. extrusion, heat treat- require strengthening, to truly be considered to effectively deliver these services. lacking. These experts could tion to conduct on-site assess- be deployed at the centre for a ment, butting, hydroforming, ments of production operations fixed initial period (6 months permanent mould casting) of bicycle manufacturers and Table 1: List of KPIs - 1 year) to provide handhold- »»Material identification, compo- provide efficiency and producing and consultancy support to sition and behaviour analyses tion improvement guidelines. The manufacturers, and the RDCSBM RDCBSM’s skills vis-à-vis 5S, total Audit Items Evaluation Criteria China MANN (applicable to high-strength engineers would thus simultane- quality management, kaizen, etc. » Assy defect rate < 0.1% steel, carbon fibre, titanium, etc.) Defect rate level » 5/6 1.0 ously receive on-the-job training would have to be strengthened »»Part defect rate < 1% »»Design of jigs, fixtures, dies and Quality from these experts. The required for it to subsequently support the Inspection system level Good inspection performed; Good inspection tool control 5/6 1.0 experts could be specialists in: moulds, as applicable for differ- industry. An indicative set of key Standardization level Q-standard visualized and worker respects its standard 5/6 1.0 TIG welding; weld inspection; PLC ent materials performance indicators (KPIs)13 Machine utilization level Main machine is running constantly 5/6 2.0 automation; advanced coating »»PLC automation in bicycle-manu- that could be used for such ser- Cost Labor performance level All workers are working hard without waiting time loss 4/6 2.0 (painting) systems; low-pollution facturing units vices is given in Table 1. (Productivity) bright plating; polymer identifica- Layout Straight Ine and no transportation wastes 5/6 1.0 tion; injection moulding defects; »»Production efficiency and lean On time defivery level OTD rate > 99% 4.5/6 2.5 die design (injection moulding, manufacturing »»Product stock < 3 days extrusion, hydroforming, per- Design competence and compo- Deliver Stock level 4/6 0.5 »» »»Parts stock < 7 days manent mould casting, forging); nentry design Synchronization level WIP stock between processes is very smal 5/6 2.0 aluminium extrusion; permanent 13 This list of quality/efficiency-related KPIs » Manufacturing of critical compo- mould casting and heat treating; » was provided by the two Japanese experts Automation level Automation level to the main machine is good 4.5/6 0.5 nents component interface; production (From the Japan Management Association Technology IT utilization level Computer and IT equipment are used efficiently 4.5/6 0.5 Consultants and O&M Inc. Ltd.) who visited layout and total quality manage- »»Efficient test execution and the RDCBSM and select manufacturing units MC maintenance level All machines are like new due to good maintenance 5/6 1.0 ment, among others. results analysis in the Ludhiana cluster in February 2018. »»Sorting, 5S level »»Set in order 5/6 1.0 Work Site »»Shining level is high Management Visualization level Prod-progression status to the plan is visualzed 4.5/6 1.0 Improve activity level KAIZEN target and actions are visualized 4.5/6 1.0 Training Discipline level All workers put on safety uniform & greet visitors 4/6 1.5 Leadership Work site atmosphere Good atmosphere and active work site 4/6 1.5 78.5/100 21

38 | The Indian Bicycle Sector The Indian Bicycle Sector | 39 Recommendations

Testing Development of bicycle quality tests for benchmarking of high-quality parts and quality certification

1. The Bicycle testing lab must be is recommended that the bicy- tapes. It is suggested that the 1. The existing bicycle standards Among the tests could be: tyre recommendation above, the accredited to perform all tests as cle test lab personnel undergo RDCBSM establish a knowledge are largely related to the safety rolling resistance; seat and han- RDCBSM should be able to per various international stand- training in the inspection and sharing partnership with other requirements of bicycles. The dle compliance; chain friction; determine and share the per- ards. As discussed earlier, some testing of EPAC components. laboratories such as the Inter- ISO (4210) System, for example, ramp fatigue of load-bearing formance parameters of various of the important international national Centre for Automotive outlines a process for testing the components; shifter repeata- top-quality components. This (country-specific) certification 3. While the RDCBSM is relatively Technology (ICAT) that is already fatigue strength of components. bility; balancing ease; bearing would provide manufacturers systems include14 JIS (Japan); EN well equipped for the mechan- engaged in reflector testing. Its testing requirements are built life; spoke life; wheel buck- with the necessary benchmarks (Europe); DIN (Germany); ASTM ical/safety testing of bicycles, on three pillars: fatigue (caused ling strength; wet braking, etc. to reference the quality of their (United States); BS (England) chemical and environment test 5. In keeping with international by recurring loads); overload- Although this recommendation own products. and AS/NZS (Australia and New facilities (mainly for tyres and trends, the specialized testing ing, and impacts (which are appears purely technical, it in Zealand). As expressed by vari- tubes) must be established in for certain accessories could less frequent events) (Zedler, fact should have a wider scope 3. Subsequently, the developed ous industry representatives dur- order to assist manufacturers improve the service offerings 2017). While such an approach and impact. Quality tests and tests would allow for the estab- ing the diagnostic assessment, to meet product requirements of the RDCBSM’s test labs. ensures a certain level of oper- marks will only make a difference lishment of a quality certifi- certifications that would qualify for European/American mar- An example of this is bicycle ational safety, there are several if the majority of the manufactur- cation mark (with appropriate them to enter export channels kets. For the development of helmets, for which regulatory aspects that fall outside the ers employ them, if their applica- legal and personnel structure) (with a special expressed focus premium bicycles with rub- standards (as per the PPE Direc- purview of these tests. These tion is rigorously controlled, and to administer a quality regime, on European markets) would ber and plastic components, tive 89/686/EEC) exist in the tests consider very specific if all players publicize their signif- allowing manufacturers to cer- enhance the RDCBSM’s utility for testing facilities for the ROHS USA, Australia, Canada, Japan, conditions, and solicit extra icance internationally. tify products as meeting strict local component manufacturers. (restriction of hazardous sub- Europe and Great Britain. testing for parts that don’t fall standards, i.e. the quality stand- Towards this, necessary steps stances)/REACH (registration, within these defined categories. The standards will first be used ards established in the preced- would include: evaluation, authorisation and 6. The RDCBSM bicycle test lab Aspects such as durability, func- to provide feedback in product ing recommendations. The restriction of chemicals) com- personnel require expertise in tioning, precision or comfort are development, using appropri- requisite guidance to help man- »»Purchase of country-specific pliance is vital. This would conducting tests for specific not measurable by safety tests. ate cycle engineering skills. It ufacturers meet these standards standards documents involve detection of heavy met- components. The ISO system would also allow display of rigor- must also be provided. »»Submission of applications for als (lead, cadmium, chromium comprises a range of such tests Therefore, while the safety ously controlled ‘quality marks’ necessary accreditations as VI), morphology analysis, deter- that are currently not available tests provide a solid foun- on compliant Indian products, per international accreditations mination of phthalates (plasti- at the RDCBSM. It is recom- dation, final product quality and support unified international cized materials) and restriction mended that the RDCBSM bicy- must be measured factoring marketing efforts to solidify faith »»Cross comparison of require- of polycyclic aromatic hydro- cle test lab personnel undergo in a bike’s intended use. It is in these markings. These quality ments across each of the carbons (PAH). Competency in training at leading international recommended that new tests tests would support Indian com- standards (for effective guid- chemical testing for aluminium test labs to observe the config- measuring functionality and ponents and bicycles rapidly to ance to manufacturers) tube material characteristics uration and execution of such durability are developed at develop an international repu- would also enable manufactur- component-specific tests (e.g. the RDCBSM so as to be able tation for quality (consistency), 2. The RDCBSM is equipped for ers in identification and utiliza- cranks, handles and handle- to benchmark top-quality bicy- performance and attractiveness. parts 1-9 of ISO 4210 tests for tion of correct grades of alloys. bars), as well as execution of cles and components, and sub- bicycles. ‘Part 10’ (currently tests for components of differ- sequently define a novel set of In order to develop such tests, the under development) for elec- 4. Reflector testing: Since the ent materials. quality standards as a notional need is for scientifically trained, trically power assisted cycles use of reflectors on bicycles target for Indian manufacturers. qualified engineers (areas (EPACs) is to be included upon has been mandated by the 7. In addition, test lab personnel such as aerospace engineering finalization. Thus, it is sug- Indian government, establish- require expert handholding for To illustrate, these could be would be desirable) to begin to gested that the RDCBSM facili- ing a reflector testing facility the optimal calibration of equip- conceptualized as roughly corre- learn the needs, using existing ties are equipped with the nec- would be useful to the indus- ment, measurement of results sponding to: equipment in innovative ways essary electrical tests for such try, that currently uses automo- and avoidance of common mis- in order to begin benchmark- EPACs. These could include tive research/testing labs. The takes in test execution. Level 1, the best Shimano16 prod- ing the durability of world-class water/dust proof tests, electri- R&D centre would be an ideal ucts (suited for $2000 bicycle); cycles. This consultative pro- cal and battery safety, electro- location for the establishment 8. Non-destructive bicycle testing Level 2, medium Shimano prod- cess could occur at the RDCBSM magnetic compatibility, etc.15 In of a testing facility specific to (such as ultrasonic testing, mag- ucts suited for $800 bicycle; and facilities, embedded within the preparation for this addition, it configurations required for fix- netic particle inspection, dye Level 3, the lower-end Shimano needs of the manufacturers ing reflectors on bicycles. It is penetrant testing (DPT), radiog- products suited to $250 bicycle; to meet export requirements. 14 This is not an exhaustive list. recommended that the test lab raphy, fractography, etc.) is also and so on. 15 of bicycle reflectors, sheets and premium, high-quality brands. quality tests developed in the

40 | The Indian Bicycle Sector The Indian Bicycle Sector | 41 Recommendations

Design Training

1. The design and development 3. The RDCBSM should engage 4. The design and development 1. The training function of the »»Wheel assembly processes. It is recommended team must undergo compre- in prototype production ser- staff must also develop exper- RDCBSM is a centralized resource that leading bicycle manufac- » Bicycle assembly hensive training in component vices. This would involve pro- tise in analysing existing patent for capacity building and knowl- » turers and relevant technical geometries and interfaces. totyping bicycle parts, tooling documents to establish pro- edge transfer for the industry. »»Stickering process (auto- experts conduct these sessions While the staff is proficient in mock-ups and related acces- duction parameters for various While the centre currently deliv- mated/water-based, etc.) to maximize exposure. the various software, the appli- sories such as helmets. The 3D components and advise manu- ers short-term training courses »»Bicycle maintenance cation of the software to bicycle printers deploy different types facturers accordingly. The assis- (as previously outlined) for the 4. For these proposed courses to design (frame building, wheel of technologies such as fused tance of resource centres such industry, it is recommended that 2. It is also recommended that the be delivered to the industry, it is building), component design deposition modelling (FDM) or as the Patent Information Cen- a wider range of worker training RDCBSM work towards develop- recommended that appropriate (production parameters, joining stereolithography (SLA), with tre, Punjab17 could be sought in courses be developed and deliv- ing a diploma course tailored curricula be developed in con- and combinations with other different implications with this direction. ered, in keeping with emerging towards bicycle engineering. sultation with leading R&D insti- components, component inter- respect to precision, finish, processes and production meth- tutions (such as CHC Taiwan), faces) and overall bicycle perfor- cost and final usage. It would ods such as: 3. The RDCBSM should also con- international experts in each of mance must be enhanced. be useful for the RDCBSM to duct component-specific train- the mentioned areas and rele- house a rapid prototyping facil- »»Advanced TIG/MIG welding: ing sessions for component vant bicycle training academies 2. It is advised that the design and ity with such 3D printers, serv- »»Advanced coating methods/ manufacturers, i.e. knowledge from across the world. development team undergoes ing both experimental product dissemination forums for man- 17 Under the Patent Facilitating Centre surface finishing/plating further proficiency training in 3D development and mass pro- (Technology Information Forecasting ufacturers of a particular com- 5. It is also recommended that an »»Injection moulding CAD software to facilitate prod- duction purposes. and Assessment Centre), Govern- ponent, to discuss global best industry-wide survey/poll be uct development projects. ment of India »»Painting (automated disc paint- practices, common hurdles executed to understand the training, effective manual painting?) and challenges and production ing requirements of the industry.

Pilot facility Upgrading of Common facilities/Mass production machines/tool room

It is recommended that a small- demonstration of PLC automa- 1. To support the bicycle industry shop at the RDCBSM should be 2. The general-purpose tool pro- scale pilot-manufacturing facil- tion measures applicable in the in adopting production in alu- expanded to include: duction machines and related ity be established at the RDCBSM, Indian context. minium, the R&D centre’s com- equipment are a source of to produce/assemble complete mon facility should be upgraded »»An extrusion press income for the R&D centre, bicycles of various categories. This proposed pilot facility could to include facilities/equipment »»Permanent mould foundry but are dated and need to The main goal of such a facility also be the test-bed for the pro- for producing production blanks be upgraded/replaced. This would be to provide the RDCBSM duction of certain critical compo- and supporting services for »»Heat-treatment facility applies specifically to the CNC staff greater functional exposure nents, the production of this has the proposed material bank. »»Hydroforming facility machines such as the horizontal to the bicycle production pro- not taken place in India due to Aluminium components go machining centre, cold forging cess and to better understand lack of technology or know-how. through the various shaping Analogous to the current cold machinery, etc. component interfaces, design Components such as derailleurs and joining processes which forging production facility at the implications, material behaviour, and gear-shift levers are critical start with the extrusion process RDCBSM, an extrusion/casting/ 3. The RDCBSM tool room person- product performance as well as components for high-end bicy- to make the tubes to construct heat-treatment facility for alu- nel solicit training in how to provide a practical understanding cles, and the RDCBSM can use the frame, butting to form the minium would position the R&D make accurate dies for differ- of different types of bicycle mod- the pilot facility to demonstrate ends of the aluminium tubing, centre as a common facility for ent moulds, jigs and fixtures for els. The facility could be housed production techniques through hydroforming to get the tubing the industry, not necessitating different materials, especially at the RDCBSM premises and appropriate technology sharing into the required shapes of the major capital investments by aluminium and plastic. This would also serve as a demonstra- mechanisms with international frame, welding to assemble the the SMEs, at least as they initi- would entail training and expert tion site for various modern pro- companies, reverse engineering frame, and then heat treatment ate alloy-based production. This guidance in tool design for the duction processes that the Indian exercises, etc. to further change the physical common facility could work in RDCBSM’s design and develop- bicycle industry is yet to adopt. properties of the aluminium. conjunction with the proposed ment team. This would also enable real-time This would mean that the work- material bank.

42 | The Indian Bicycle Sector The Indian Bicycle Sector | 43 Recommendations

Increased R&D function and Technology development

1. Applied research improvements, and will shortcut Improving lithium ion (Li-ion) years of wasted development battery technology is result- Given the level of operation and effort. The primary aim would be ing in e-bikes that are lighter, technology of the Indian bicycle to provide rapid engineering ser- lower in cost, and remarkably industry, R&D does not necessar- vices (stress calculation) and similar to traditional bicycles. ily allude to the invention or origi- consulting (recommended dimen- They are seen to have envi- nation of new, alternative, cutting sion change) so companies can ronmental and performance edge technologies/methods, but rapidly upgrade and certify their advantages over the traditional more pertains to the adoption of bicycle components and frames sealed lead-acid batteries (SLA). globally adopted best practices, to world-class standards. It should methods and processes into the be recognized that cycle engi- There is tremendous potential Indian context. Most medium and neering is not only applicable in economical electric assist small-scale manufacturers are to premium products, the same hardware that can be fitted onto largely unaware of what new meth- advanced techniques will also any existing bicycle/tricycle/rick- ods are prevalent worldwide and lead to better and cheaper ‘ten- shaw, thus increasing the ease how they can adopt them, without der bikes’ and cycle rickshaws. of it absorption in the market. It having the necessary resources/ But another important goal would may include components such wherewithal to engage in such be to teach engineering methods as a custom motor; a closed loop research themselves. This opens to any manufacturer or employee controller with power electronic up an important service avenue who wants that expertise. It is drive elements for the motor; for the R&D centre to investigate recommended that engineers a battery pack with custom and analyse what the best availa- with an MS level background in battery management circuitry, ble production processes are, what fields such as aerospace engi- and torque and rotary position they entail and how they can be neering could be engaged at the encoders (Petron, 2008). This adopted in the industry. This could R&D centre for such exploration. is a relatively new product seg- centre on material behaviour, com- ment and can be explored for its ponent interface, stress analysis, »»E-bikes and electric assist hard- applications to Indian-produced optimal configurations for specific ware: According to Navigant bicycles. Thus, this segment components, etc. Applied research Research, the global e-bike mar- holds tremendous potential in would also be useful for trou- ket is projected to grow at a 0.4% developing a cost-competitive, ble-shooting and fault correction compound annual growth rate environment-friendly product. in components and bicycle perfor- (CAGR) over the forecast period mance. When manufacturers bring (2016-2025). Western Europe and 2. Market research testing samples to the R&D centre the Asia Pacific, such as Japan test labs and do not meet perfor- and Vietnam, are expected to The R&D centre would be pro- mance criteria, this would bring be major markets. In the com- viding a valuable resource to the up pertinent topics and areas in ing years, e-bikes in Europe are industry by investigating what which investigative research could expected to evolve from a spe- types of bicycles/components are be undertaken, in line with the cialty commuting or recreation being produced in various parts applied research mentioned above. device to a standard bicycle form of the world, what materials are that is accessible to nearly all being used necessitating what »»The R&D centre can explore the bike consumers (Citro & Gartner, types of processing technologies, application of advanced engineer- 2016). This is going to be a boom what designs are being targeted, ing processes to provide feed- sector, which will allow the cycle and what new practices are emerg- back to any product development industry to retain riders who might ing. With a more market-oriented effort, using finite element anal- otherwise invest in motorbikes, view, such research could also be ysis, structural dynamics, struc- and will assist cycle-transporters extended to industry sales trends, tural stability, fracture mechan- to travel faster with less effort. prospects and potential markets – ics, service-load measurement, applicable to both domestic and bearing life data, etc. While the Thus, the global e-bike mar- global bicycle-producing/purchas- bicycle-plus-rider system is com- ket is well-positioned for con- ing regions - as a resource for man- plex, the engineering approach tinued growth, primarily in the ufacturers looking to venture into is the quickest route to sensible Lithium-ion battery segment. newer market segments.

44 | The Indian Bicycle Sector The Indian Bicycle Sector | 45 CONCLUSION 5

The Indian bicycle industry is faced with Thus, for an industry-wide transition towards several challenges in achieving export com- producing and selling exportable bicycles petitiveness. The industry largely produces and components, it is recommended that basic models of steel roadster bicycles these aforementioned barriers are over- (mostly for government tenders), children’s come through interventions such as (i) the bicycles and a very limited volume of pre- establishment of a material bank to facili- mium bicycles (the parts for which are sup- tate the economical supply of the requisite plied by imports). The bicycles demanded raw material to manufacturers; (ii) provid- in global markets are aesthetically and ing manufacturers, especially the compo- technically superior than what is produced nent- manufacturing SMEs, technical guid- domestically, are made from high-end ance and handholding through a variety materials, are of multiple-speed settings of modalities for efficient and competitive and require several special components, production. This could include deployment often from specific brands. of technical experts for consulting/handholding services, technology sharing mech- Even though the Indian bicycle industry is anisms, technology co-development and the second largest in the world in terms of demonstration, focused testing support volume, manufacturers are faced with sev- and quality testing services, etc.; (iii) the eral demand and supply-related barriers establishment of a common node/ entity for in producing bicycles that are demanded international sales and marketing, such as a globally, as explained in the course of this common brand for the numerous, unrecog- report. These include: a lack of access to nized brands of component-manufacturing appropriate grades and forms of raw mate- Indian SMEs. These efforts could be aided rials at affordable prices, mainly alumin- with appropriate policy advocacy efforts to ium alloy; the need for an international support the main needs of the industry. marketing and selling channel to access international markets and gain consumer In such a context, the RDCBSM, as the nodal confidence; the need for technical guid- technical institution for the Indian bicycle ance and expert handholding to adopt industry, could potentially be harnessed as modern manufacturing processes and the instrument for the delivery of a number best available technologies to produce of these recommendations, with special bicycles and components of exportable reference to the provision of technical sup- and consistent quality, aesthetic designs port and guidance to manufacturers. With and economical pricing; and appropriate the identification of the main needs of the policy support for the suitable enabling industry as well as the main areas in which conditions for such production. manufacturers solicit production guidance,

The Indian Bicycle Sector | 47 Conclusion

the diagnostic assessment conducted bicycle-manufacturing units; production under the UNIDO bicycle project aimed to efficiency and lean manufacturing; design REFERENCES evaluate how the RDCBSM is positioned to competence and componentry design; respond to these needs. manufacturing of critical components; efficient test execution and result analysis, It was determined that the RDCBSM person- among others. The RDCBSM would then Anon. (2012). Aluminum Frames: 6061 vs 7005. Which Is the Best? Retrieved from: global developments in the bicycle indus- as applied R&D, product development, the try and the associated skills required to operation of a pilot facility for high-end Citro, R., & Gartner, J. (2016). Electric Bicycles. Navigant Research. be adopted therein. Although the RDCBSM bicycles, quality testing and certification, currently provides a range of valuable ser- worker training, critical consultancy ser- Oxer, M. (2000). The Bicycle Industry: Local provider, global partner? Retrieved from: vices to the industry, there are gaps in the vices, etc. to the industry. However, in the current expertise available at the centre as short run, the R&D centre would need to be well as the support offered to the indus- supported by a bank of external, interna- Petron, A. (2008). A bicycle electric assist unit. Massachusetts Institute of Technology . try. The centre is not in a position to pio- tional experts specializing in the identified neer the adoption of modern manufactur- production processes to simultaneously Research and Markets. (2017). Growth Opportunities in the Global Bicycle Industry. ing processes in the Indian context, and support the industry, as well as build profi- thus requires expert assistance and skills/ ciencies at the RDCBSM. The Energy and Resources Institute (TERI). (2014). Pedalling towards a greener India: A report capacity building support to absorb global on promoting cycling in the country. best practices and disseminate the same to This report attempts to identify and high- the industry. There are a number of ways in light some of the critical needs of the Zedler, D. (2017, August 31). The ISO 4210 standard for bike tests sets a floor, not a ceiling. which the service portfolio of the R&D cen- industry, and corresponding measures that Eurobike Show Daily. tre could be expanded and strengthened. would enable bicycle and bicycle parts For the RDCBSM to be able to better sup- manufacturers to produce and sell as per port the industry in line with global market international quality standards. In such a requirements, there is a clear need to build context, the RDCBSM and the industry asso- capacity and expertise in areas such as: the ciations should be positioned to play a key material behaviour of aluminium alloy and role in enabling manufacturers to become the requisite processing ( e.g. extrusion, an active part of global value chains and heat treatment, butting, hydroforming, markets. Addressing the industry-wide permanent mould casting, etc.); material critical needs through collaborative indus- identification; composition and behaviour try action and equipping the RDCBSM and analyses (applicable to high-strength steel, the industry associations to appropriately carbon fibre, titanium, etc.); design of jigs, respond to these needs are thus crucial for fixtures, dyes and moulds, as applicable export competitiveness and the survival of for different materials; PLC automation in the Indian bicycle industry.

48 | The Indian Bicycle Sector The Indian Bicycle Sector | 49 Images and illustration copytights © SHUTTERSTOCK: Kruub (cover), Youst (p. 18), roccomontoya (p. 24), . AETHEREAL SOLUTIONS: otherwise. TECHNICAL REPORT THE INDIAN BICYCLE SECTOR ENHANCING PRODUCTIVITY IN THE INDIAN BICYCLE SECTOR

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