Bajaj Auto has a strategic alliance with KTM; It has 48% stake in it: Rakesh Sharma
Rakesh Sharma, Executive Director, Bajaj Auto Ltd talks about the Q4FY19 results and segment that will have a maximum contribution to Bajaj Auto during an interview with Swati Khandelwal, Zee business.
Rakesh Sharma, Executive Director, Bajaj Auto Ltd talks about the Q4FY19 results and segment that will have a maximum contribution to Bajaj Auto during an interview with Swati Khandelwal, Zee business. Excerpts:
Q: Bajaj Auto has posted good results in Q4FY19. What were the growth drivers?
A: It has happened because we have focused on the segments that are growing in the industry. If you have a look at the overall performance of the industry, then it, the industry, is running in minus. But, when looked closely, then there are different segments in the industry of which some are doing good while others aren’t. So, we have focused on segments, sports segment and entry Segment, that are doing well. We have introduced new products in these segments. On the other hand, the middle segment is collapsing. So, these movements/actions are providing a good field for us.
Q: Name the products or segment that will have a maximum contribution to your business? Secondly, you have already announced that Bajaj along with KTM will be launching a product in the electric vehicle segment. So, update us about your plans?
A: First of all, we have concentrated on the sports segment, where we have a stronghold. Pulsar is our brand name in the segment and we have introduced two-three different products of Pulsar, which has been accepted in public. So, if you have a look back then you will find that 50,000-60,000 pulsars were sold in a month, but this number has gone up to 80,000-90,000 now. So, Pulsar is a higher margin product and is a stronghold of Bajaj. In fact, it has been accepted by people. The second is commuted segment, where we have tried to convert 100cc into 110cc with an aim to upgrade our customers. Possibilities are there that raising it above 110cc level may not benefit the customer. So, Platina 110 and Pulsar 150 ranges have performed well in the quarter.
Q: Update us on your tie-up with KTM industries as well as Triumph?
A: We have a strategic alliance with KTM and we have 48 per cent shareholding in the company, which has existed since 2007-08. This decade-old partnership is performing well. Interestingly, last year, KTM turned up to be the top-premium bike manufacturer after it overtook Harley Davidson. Bajaj Auto also had a contribution in it. We also have good coordination with KTM at all levels mainly R&D and manufacturing level. So, we have joined hands with KTM Industries to provide an electric option in high-performance bikes. Besides, our talks with Triumph has reached an advanced stage and I feel that it will reach a conclusion in the next one-two months.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.