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Bajaj Auto takes 14.5% stake in KTM Sports
BS Reporter / Mumbai November 5, 2007
Bajaj Auto, through its 100% Netherlands subsidiary Bajaj Auto International Holdings BV, has acquired an interest of 14.5% in KTM Power Sports AG for Rs 300 crore.
KTM Power Sports AG, the second-largest European sport motorcycle manufacturer, is listed on the Vienna stock exchange and reported revenue of euro 566.1 million in fiscal year 2006/07.
KTM is a group gompany of Cross Industries AG, which is indirectly owned and managed by Stefan Pierer and Rudolf Knunz. The Cross groupâ??s other businesses include racing motorsports systems and composites.
According to a joint statement released by KTM and Bajaj today, the KTM Group will provide the know-how for the joint development of 4-stroke engines (125-ccm and 250-ccm), which will also provide KTM the basis for street motorcycles in the new entry segment. The joint developments will also be available as basis for Bajaj products.
The statement said: "Through the co-operation with Bajaj, KTM extends its product portfolio for the future with a 125-ccm street product line in addition to the present 1190-ccm, 990-ccm and 690-ccm platforms developed and manufactured in Austria. With the introduction of the new EU driving licence, which allows riding of 125-ccm motorcycles with a car driving licence in all EU member-states, KTM will be in a position to offer innovative premium entry models in the street segment.
"The sourcing for the production and the assembling of these new models in the street entry segment will occur in India. Thus, the KTM Group is able to develop a natural hedging potential for its USD-exposure in the future.
""Bajaj takes over the distribution of KTM products in India and further countries in South-Eastern Asia. Through this co-operation. KTM opens up the Asian region, and receives new opportunities for the sales of the entire product portfolio."
Stefan Pierer, CEO of KTM, while welcoming the Bajaj participation said: "The executive board of KTM Power Sports AG appreciates this measure and sees in the co-operation a great chance to strengthen the KTM Group in its sustained growth strategy in a global environment."
Rajiv Bajaj, CEO, Bajaj Auto, said: "KTMâ??s sharp brand positioning, differentiated designs, and hyper performance have inspired Bajaj to invest in this participation. Bajaj is delighted with this opportunity to co-develop a range of products for manufacture by Bajaj for both KTM and Bajaj brands. Equally, Bajaj is excited by the prospect of introducing KTM products to India and South East Asia as also to access the European market via KTM. Bajaj is confident that this co-operation represents a long term win-win situation given the entirely complementary and conflict free nature of the partners in brand positioning, market presence, product plans and supply chain structure."
BS Reporter / Mumbai November 5, 2007
Bajaj Auto, through its 100% Netherlands subsidiary Bajaj Auto International Holdings BV, has acquired an interest of 14.5% in KTM Power Sports AG for Rs 300 crore.
KTM Power Sports AG, the second-largest European sport motorcycle manufacturer, is listed on the Vienna stock exchange and reported revenue of euro 566.1 million in fiscal year 2006/07.
KTM is a group gompany of Cross Industries AG, which is indirectly owned and managed by Stefan Pierer and Rudolf Knunz. The Cross groupâ??s other businesses include racing motorsports systems and composites.
According to a joint statement released by KTM and Bajaj today, the KTM Group will provide the know-how for the joint development of 4-stroke engines (125-ccm and 250-ccm), which will also provide KTM the basis for street motorcycles in the new entry segment. The joint developments will also be available as basis for Bajaj products.
The statement said: "Through the co-operation with Bajaj, KTM extends its product portfolio for the future with a 125-ccm street product line in addition to the present 1190-ccm, 990-ccm and 690-ccm platforms developed and manufactured in Austria. With the introduction of the new EU driving licence, which allows riding of 125-ccm motorcycles with a car driving licence in all EU member-states, KTM will be in a position to offer innovative premium entry models in the street segment.
"The sourcing for the production and the assembling of these new models in the street entry segment will occur in India. Thus, the KTM Group is able to develop a natural hedging potential for its USD-exposure in the future.
""Bajaj takes over the distribution of KTM products in India and further countries in South-Eastern Asia. Through this co-operation. KTM opens up the Asian region, and receives new opportunities for the sales of the entire product portfolio."
Stefan Pierer, CEO of KTM, while welcoming the Bajaj participation said: "The executive board of KTM Power Sports AG appreciates this measure and sees in the co-operation a great chance to strengthen the KTM Group in its sustained growth strategy in a global environment."
Rajiv Bajaj, CEO, Bajaj Auto, said: "KTMâ??s sharp brand positioning, differentiated designs, and hyper performance have inspired Bajaj to invest in this participation. Bajaj is delighted with this opportunity to co-develop a range of products for manufacture by Bajaj for both KTM and Bajaj brands. Equally, Bajaj is excited by the prospect of introducing KTM products to India and South East Asia as also to access the European market via KTM. Bajaj is confident that this co-operation represents a long term win-win situation given the entirely complementary and conflict free nature of the partners in brand positioning, market presence, product plans and supply chain structure."
