Americans probably can’t place the name “Rajiv Bajaj” when they hear it, though his last name should give you a clue. As the Managing Director of Bajaj Auto, Rajiv Bajaj is in charge of one of the largest motorcycle brands in the world.
As we learned yesterday, Bajaj is one of the many firms vying for ownership of Ducati Motor Holding – that is of course assuming that the Volkswagen Group actually sells the iconic motorcycle brand, which is a big “if” to make.
For Bajaj though, they seem fairly confident that Ducati will sell, and even more confident that the Italian brand will be part of their motorcycle portfolio. Talking to the Economic Times, Bajaj has hinted that his company was in the final stages of sealing the deal with Ducati.
“We are very close to finalising a very promising alliance,” said Bajaj. “It’s not certain, that it will happen, but if it happens, it will open up enormous possibilities for the company. That is why we keep our money (cash on books) with us, so, once in a while, when an opportunity comes along, we are ready.”
Bajaj is reported to have about $13 billion in free cash stashed away on its books, which means that the Indian firm could easily float the €1.5 billion that Volkswagen is looking for.
A Ducati purchase for Bajaj could make some sense too, for both brands, as Bajaj is looking for continued traction outside of the Indian market (especially in large-displacement machines), and Ducati could benefit from Bajaj’s low-cost manufacturer abilities (and its access to the Asian markets).
Whether that means that Bajaj can offer the kind of coin that Volkswagen is looking for, and whether Bajaj can convince VW’s union workforce, which controls half of the boardroom seats, remains to be seen. As we’re fond of saying, time will tell.
Source: Economic Times
Comments