Bajaj Auto now has over 30 percent stake in KTM

Bajaj Auto’s the second largest bike manufacturer company in India, Bajaj reported to have raised its share with the leading Austrian bike maker KTM motors. According to the reports, with an increase of 1.21 percent Bajaj’s total stake in KTM has raised to 39.3 percent. There are reports that Bajaj Auto is constantly purchasing the share of KTM. On the contrary CROSS Industries, the promoter of KTM has clearly announced that it will not sale out the company to any of its shareholder.

There are reports that Bajaj made its entry in Vienna Stock Exchange in 2007 by acquiring 14.5 percent of the total shares and since then Bajaj has invested more than Rs. 1000/- crore to acquire the position of second largest shareholder in the list of companies noted in Vienna Stock Exchange. According to CROSS Industries it will maintain its control on KTM by holding 51% of its total shares. The other major shareholder in KTM is a Private Foundation HOFER which owe almost five percent of the shares in KTM.

There are rumours that Bajaj is planning to take over the managerial control of KTM by 2013. There are reports that both Bajaj and KTM under the joint venture are working together in designing the new bike models, engines and occupying the auto parts at cheap rates from Indian market and extending their reach to international market. The bike manufactured under this alliance is named as KTM Duke, with the brand name of KTM. The new range of KTM Duke bike will sold in the International market starting from bike market in European countries. Bajaj assumes that upgraded with latest technical features the KTM Duke bike will be helpful in improving the financial position of Bajaj.

On the other side the other measures  adopted by Bajaj to improve its financial position includes the relaunch of its earlier versions of bike with modified features. As the result of this Bajaj Launched Bajaj Discover 125 Recently in Indian bike market and Bajaj Boxer to be relaunch with 125cc. Apart from this Bajaj Is All Set To Bring Kawasaki Ninja 650R In India at the earliest.

Let us hope that after hosting its flagship in Indian market to highest level Bajaj Auto also raises its flag to new heights in the International Market.