Bajaj Auto to buy more shares of sportsbike maker KTM Power Sports

Recent reports reveal that India’s second largest auto manufacturing company Bajaj Auto Ltd has some plans to increase its share in Austrian sportsbike manufacturer KTM Power Sports AG. The raise is expected to be from the current 39.26% to 49%. Confirming the rumours of increasing stake in KTM Power Sports, sources said that Bajaj is concentrating on all the possible options of increasing its share to 49%. Sources further add that Bajaj has contacted Cross Industries, the Austrian promoter of KTM regarding the raise. However, sources have confirmed that Bajaj will not go for majority of shares or 51% stake in KTM.

At present Cross Industries AG from Austria is the promoter of KTM series of bikes by holding 51% of its share in Vienna Stock exchange. Bajaj Auto Ltd started building its stake in KTM in the year 2007 by acquiring 14.5% of KTM shares at an investment of Rs. 300 crore and since then it has been continuously increasing its share by purchasing KTM’s share from open market. According to a statement made by Cross Industries, Bajaj currently has 40% of KTM stake and it is free to purchase the company share from open market. Bajaj Auto Ltd and Cross Industries entered into a joint venture in 2008 and have agreed to manufacture 125cc KTM brand bikes in India for selling them in the European market.

At present Bajaj is speculating on launching KTM Duke in Indian market during the coming festive season along with the new incarnation of its most promising bikes Bajaj Pulsar and Bajaj Boxer in Indian market. Besides, this Bajaj is also planning to launch KTM Duke 125 racing bike in India by the beginning of 2012. The other KTM Duke sportsbikes to be launched by Bajaj and Cross Industries with KTM brand name will be KTM Duke 200 and KTM Duke 350.