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components per bike
Low cost, eco-friendliness, and health benefits help keep bicycles a popular form of transportation. India is the world’s second-largest producer of bicycles, which continue to be the principal mode of transport for rural families. They’re also an antidote to urban traffic congestion for younger, middle-class Indians.
Avon Cycles Limited
Ludhiana, Punjab, India
Rs 4.21 billion (US$89.4 million)
vCentric Technologies Pvt. Ltd.
Sales, Manufacturing, Procurement
SAP Business Suite powered by SAP HANA
Rural India relies on bicycles for routine transportation, and bikes are increasingly popular with environmentally conscious, middle-class urbanites. But with an average of only 90 bicycles per 1,000 people, there is tremendous growth potential for the market. For more than 60 years, Avon Cycles has dedicated their mission to the provision of affordable, quality bicycles.
In 1951, the Pahwa brothers built their first 250 bicycles. Today, the company is going strong and is still in the family, now operated by second and third generations of the Pahwa family.
The bicycle industry in India is currently worth $1.2 billion annually, with a production output of about 15 million units. Each Avon Cycles bicycle can have as many as 360 unique components, and the company currently builds 1,800 different configurations of pedal-powered and electric bicycle designs. To remain competitive as one of the key players in the Indian market, Avon Cycles needed to leverage their growing data volumes to increase operational efficiency, improve customer service, and provide greater value to their stakeholders.
Avon Cycles has relied on SAP Business Suite applications for many years to support processes across all its business lines. Besides optimizing operational performance, SAP has been a key factor in Avon Cycles’ efforts to maintain high customer service levels as a competitive differentiator.
SAP has already been a trusted partner of the Avon Cycles and the Pahwa family for improving the company’s ability to manage itself with greater speed and agility. To prepare for future growth, Avon Cycles turned to SAP to identify ways to leverage its big data in areas such as supply chain, sales, and procurement. With SAP partner vCentric Technologies, Avon Cycles migrated its SAP Business Suite applications to the SAP Business Suite powered by SAP HANA.
SAP Business Suite powered by SAP HANA and its in-memory computing capabilities give stakeholders at Avon Cycles real-time access to business insights that aid decision making and productivity. The implementation aligns with the company’s growth plans and is expected to play a significant role in the company’s overall success designing, building, and distributing quality bicycles at an affordable price.
On the IT side, Avon Cycles has been able to reduce backup and restoration times by 80% with zero downtime. Operationally, the bicycle manufacturer is gaining better control of its supply chain by accelerating data analysis and reporting. Today, MRP runtimes are 50% faster than before.
Running SAP Business Suite applications on the SAP HANA platform has also improved business operation execution by 45%, meaning faster, more informed decision making. It also results in more efficient service for customers, vendors, suppliers, and partners.
Avon Cycles has been able to retire its old Oracle database by migrating to SAP Business Suite powered by SAP HANA. The increased agility and efficiency gained from SAP technology will help the company improve sales forecasting. This is particularly important in India, where bicycles are largely considered a commodity product, and leave little time for efficient material requirements planning.
At a strategic level, Avon Cycles is ready to use its investments in SAP solutions to improve business performance and product quality. The power of doing business in real-time will be a major part of differentiating Avon Cycles from the competition by helping deliver greater overall value.