Hero Cycles, the Indian bicycle manufacturer, is building a new plant in the state of Bihar, in India's northeast. The investment is worth nearly INR370 million (€4.3m-$5.9m) and is supposed to allow for the production of one million bicycles per year, expandable by 50 percent after two or three years. The plant should be operational around May-June 2014 and will serve India's Eastern market, a region showing significant growth. Construction work in Binta, about 35 km from the state Capital Patna, started last October. The state of Bihar is around 1,400 kilometers from Ludhiana, where Hero Cycles' mother plant is located. The company is also considering exporting bicycles from the new Bihar plant to the neighboring markets of Bangladesh and Nepal.

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