Source : PTI | Austrian bike maker KTM on Saturday said the judicial restructuring of its holding firm Pierer Mobility AG has no impact on business related to products co-developed with Bajaj Auto for Indian domestic market and select export markets. However, it is impacting business of Pierer Mobility AG/KTM AG that is run out of Austria, including exports from Austria, India and China to its key markets in the US and Europe.
On November 26, given the immediate liquidity constraints, the Executive Board of KTM AG has decided to file an application for the initiation of judicial restructuring proceedings with self-administration over the assets of KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH, the company said in a statement.
All other subsidiaries of KTM AG, in particular all sales companies, are not affected, it added.
“It is to be noted that the aforesaid matter has a bearing on the business of Pierer Mobility AG/KTM AG that is run out of Austria,” the company said.
These developments are impacting the export volumes from Austria, India and China to its key markets in the US and Europe, it said.
“…the KTM business that is run out of India (domestic, select export markets) for which products are co-developed by KTM & Bajaj and manufactured and sold by Bajaj Auto continues to operate in the normal course during this period,” the company added.
Bajaj Auto through its wholly-owned subsidiary in Netherlands Bajaj Auto International Holdings BV (BAIHBV) holds a 49.9 per cent stake in its associate — Pierer Bajaj AG (PBAG) in Austria.
The remaining controlling stake in PBAG is held by Pierer Industrie AG.
PBAG holds a nearly 75 per cent stake in its subsidiary Pierer Mobility AG (PMAG), the holding company of KTM AG.
Apart from being a part equity owner, Bajaj Auto is also a strategic partner for KTM as it develops and manufactures products (under 400cc) for India and export to overseas markets, the statement said.
The business in India is managed by Bajaj Auto whereas export geographies are managed mostly by KTM AG and partly by Bajaj Auto.
“The KTM and Husqvarna brands are of strategic importance and constitute an important part of Bajaj Auto’s premium motorcycles business in India,” the company said.
Having registered its highest ever volumes sold under these brands in the country in the last financial year, Bajaj Auto remains strongly committed to the sustained growth of this business and is working closely with its channel partners, it added.
