Hero Cycles allocates Rs 100 crore contingency fund to mitigate impact of COVID-19

With the COVID-19 outbreak expected to unleash long-term economic consequences, Hero Cycles on Tuesday said it is setting aside Rs 100 crore as a contingency fund to address and mitigate its impact on partners and the community at large.

New Delhi [India], Mar 24 : With the COVID-19 outbreak expected to unleash long-term economic consequences, Hero Cycles on Tuesday said it is setting aside Rs 100 crore as a contingency fund to address and mitigate its impact on partners and the community at large.

The contingency fund will be put to use as and when required to mitigate the impact of Covid-19 situation on employees, suppliers, customers and communities across India, it said in a statement.

The company has also reached out to state governments where it has major facilities (Punjab, Bihar and Uttar Pradesh) to extend any help required by authorities in addressing the crisis.

Hero Motor Company's international subsidiaries are undertaking a similar exercise in Britain and Germany where they have a significant presence.

"As an orgsation that stands for the principles of business with a humane approach, we are allocating Rs 100 crore as a contingency fund to help the entire ecosystem around our orgsation survive this crisis," said Chairman of Hero Cycles Pankaj M Munjal.

The company said it is assessing the economic, health and social repercussions of the crisis and pledges to stand behind its partners and associates.

Incorporated in 1966, Hero Cycles Ltd is the world's largest cycle manufacturer in the world with a manufacturing capacity of 7.5 million cycles per year.

Its parent Hero Motor Company Group has an asset base of 1.2 billion dollars (about Rs 9,105 crore) and over 7,500 people across the globe.

( With inputs from ANI )