Hero Pulls out of Daimler Commercial JV
Hero Group has now pulled out of its JV with Daimler to produce commercial vehicles. Hero Group cited difficult economic situation and weak demand in India as the reason of withdrawing from the joint venture.
"We are disengaging from the joint venture, but the company (joint venture) will continue to exist and run by Daimler. The reason for it is the current economic slowdown and we would not like to commit such big investment in the circumstances," Hero Corporate Services Chairman Sunil Kant Munja.
Daimler said Hero will maintain a conservative profile from now on. It will focus on its core business and return its 40 percent stake in the joint venture, Daimler Hero Commercial Vehicles Ltd., to its Daimler Trucks unit. No financial details of the break up were revealed.
"In light of the current economic downturn, declining market conditions and the group's strength, Hero Group has decided to maintain its focus and continue to grow its core business and not to pursue the commercial vehicles business at this time," said Sunil Kant Munjal, the chairman of Hero Corporate Service Ltd.
[Via: cartradeindia]
Bajaj Auto increases stake in KTM to 31.72%
Pune-based two- and three-wheeler manufacturer, Bajaj Auto has hiked its stake in Austrian two-wheeler manufacturer, KTM Power Sports AG, via its fully owned subsidiary, Bajaj Auto International Holding B.V.
Bajaj's stake in KTM has now gone up from 26.22% to 31.72%. The Pune-based company picked up this stake last week, when KTM was looking at raising funds via an increase in its share capital. Of the 687,357 new shares that were created, Bajaj Auto picked up 416,216 shares at a subscription price of €25 (US$31) per share. Hence, hiking its stake in KTM to 31.72% would have cost Bajaj about Rs 64 crore.
In the business year ended 31st August 2008, KTM reported revenues of €605.7 million (about US$776.9 million), up 7% from €566.1 million in the prior business year. The Austrian company sold 92,385 units in 2008, a marginal increase over the 90,306 units it sold in 2007.
As has already been reported earlier, Bajaj and KTM are working on a range of 125-250cc bikes for the Indian, Southeast Asian and European markets. Bajaj is also expected to launch a few KTM bikes in India, via the CBU imports route.
[Via: indiaautomotive]
Bajaj Auto to increase stake in KTM
The country's fourth largest bike maker is reportedly going to complete stake increase in 6-8 weeks. Bajaj Auto already holds a 25.86% share in KTM. As per reports, the Pune-based manufacturer is going to increase it's stake in the Austrian auto major to 30%. Reports are also emerging that the company's CEO and MD has confirmed the news of the company increasing it's shares in KTM.
Rajiv Bajaj, CEO and MD, Bajaj Auto, has reportedly said that the stake increase will be completed in 6 to 8 weeks. He also commented that his company has reached an agreement to increase stake in KTM. However, he apparently declined to talk about the valuations saying it wouldn't be appropriate at this juncture.
[Via: BIKE]
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