India's largest bicycle manufacturer has bought out troubled Ultra Motor for an undisclosed sum.
Having gone into administration early in November, the electric bike brand, which manufacturers the A2B and F4W lines, was seeking a buyer and in the closing days of 2011 a deal was struck with Hero.
Hero Eco Managing Director Naveen Munjal said in a statement: “This acquisition gives us an exposure to all the markets where Ultra Motor are present and will strengthen our brand globally.”
The Indian manufacturer reportedly produces around 900,000 bicycles annually.
Despite having been successful in establishing distribution in over 20 countries across the globe, Ultra Motor's initial entry into the Indian market failed, though the firm did come to the attention of Hero during its short stay.
The e-bike version of the Brompton, due to be released soon, is powered by an motor developed jointly by Brompton and Ultra Motor.
Brompton marketing director Emerson Roberts said there will be no impact on production of Brompton's e-bike:
"The [UK] bike business has gone into [administration] but this does not affect the R&D arm of Ultra Motor, which is a separate business."