Patna, June 20: Two major bicycle manufacturers — Hero and Avon — are set to enter the state in a bid to exploit the large market for two-wheelers.

Senior officials of the Punjab-based companies said the market for bicycles in Bihar was a large one and setting up manufacturing units in the state would help in marketing their products. That’s not all. A third company, Nova Bicycles, wants to explore investment opportunities in the state.

“Our plant would come up at Bihta Industrial Area, around 37km southwest of Patna. The total cost of its construction would be Rs 40 crore,” Sanjay Singh, vice-president (corporate planning), Hero Cycles Ltd told The Telegraph.

He said: “The bhoomi pujan (land worship ceremony) is tomorrow. O.P. Munjal, chairman, Hero Cycles Ltd is coming down for the event.”

The manufacturing unit — the third for the company — is expected to start operations next year. It would be spread over 10 acres. “From the very first day, it would manufacture one million cycles per day,” said Singh. “There are long-term plans for expansion as well. This plant, in a later phase, will be one among the biggest units supplying bicycles to entire eastern India. Hero cycles of all brands will be manufactured in the plant.”

Singh said the bicycle industry had a 60 per cent market share in Bihar. “One of the two manufacturing plants of Hero Cycles is in Ludhiana. By 2014, the second manufacturing plant of the company will start at Mangli in Punjab. Bihar is a huge market for bicycles. So is neighbouring Jharkhand.”

Avon Cycles has been provided 2.5 acres of land at Hajipur Industrial Area, around 25km north of Patna, for setting up of their plant.

Senior officials of the company said construction of their manufacturing plant would begin within six months. “The government had provided us with land. But there were a few hurdles,” said B.S. Dhiman, executive president, Avon Cycles.

He added: “The problems were sorted out earlier this week. The cost of our project is above Rs 10 crore. Construction of the plant will start within six months. We plan to start manufacturing within two years. The plant will have the capacity to manufacture 1,000 units a day.”

Both Hero and Avon have been provided land by the Bihar State Industrial Area Development Authority.

Asked if they would collaborate with the government on the Mukhyamantri Balika Cycle Yojana, Hero Cycles executive Singh said there had been no discussion with the state in this regard.