Chandigarh, Jan 18 (IANS): Leading brand in cycles, Hero Cycles, will invest around Rs 400 crore in the Hi-Tech Cycle Valley project in Punjab, Chief Minister Amarinder Singh said here on Friday.

Hero Cycles on Friday signed an agreement with the Punjab government for allotment of 100 acres of land in the Cycle Valley which is coming up in 380 acres in Dhanansu in Ludhiana district.

The company will manufacture hi-tech cycles, e-bikes, e-vehicles and light engineering goods at the new plant.

The agreement was signed between Punjab Small Industries Export Corporation (PSIEC) Managing Director Rahul Bhandari and Hero Cycles Chairman Pankaj Munjal here in the presence of the Punjab Chief Minister.

"The project shall attract around Rs 400 crore investment by Hero Cycles and its suppliers/ancillaries and generate close to 1,000 direct employment opportunities. The industrial park will have a production capacity of four million bicycles per annum and the project shall be implemented within 36 months," the Chief Minister said.

Within the proposed project, Hero Cycles will develop its own anchor unit in 50 acres. In the remaining 50 acres, it will invite major national and international manufacturers as ancillary/vendor units.

The Hero Group produces 10 million cycles annually, which accounts for 7.5 per cent of the world production, Munjal said.

"The upcoming Cycle Valley Project would cater to 50 per cent demand of cycle production in India and Europe," he added.