TI Cycles diversifies into F&B

Having entered into a joint venture with Absolute Concepts, TI Cycles of India, a leader in the bicycles space, has diversified into the Food & Beverage industry.

TI Cycles of India is part of Rs 4,400 crore Tube Investments of India, a major company under the Rs 29,500 crore Murugappa Group, which has interests in various segments, including cycles, auto components, fertilisers, sugar, finance, etc.

TI Cycles of India markets eight bicycle brands in India, including BSA, Hercules, Montra, and Track and Trail, among others, and has a retail network of over 200 outlets.

With a view to further strengthen its cycle business, the joint venture company TI Absolute Concepts is diversifying by weaving its core interest with businesses that have more pronounced reach with customers i.e. F&B. 

As the fourth outlet of its cycling theme-based restaurant chain Ciclo Cafe opens doors in Bengaluru, the company intends to expand its F&B business across the country.

With three more outlets across New Delhi, Chennai and Hyderabad, the joint venture has made an investment of up to Rs 25 crore till date. Setting up the joint venture in November 2016, TI Absolute Concepts had planned an initial outlay of Rs 50 crore.

“The initial investment plan was about Rs 50 crore, and this was to be made over 36 months for about 12-14 cafes across the country,” said Ashish R Thadani, CEO, TI Absolute Concepts.

Each outlet takes up an investment of about Rs 4.5 crore, he added.

The company plans to expand into Pune, Mumbai and Gurugram before entering Tier-II and Tier-III cities.

“While markets in metros may be saturated, smaller markets offer huge opportunity, For example, even Mysuru has an active cycling community. We want to explore and encourage such markets.”

Presently, sales, after-sales services and conducted tours, which form a part of the cycling segment of the business, contribute to only 20% of the turnover.