BAJAJ AUTO, THE country's largest motorcycle exporter has entered into strategic partnerships over the years to diversify into new segments and geographies. The company's investment in last mile shared mobility provider Yulu a few years ago was an attempt to diversify into the new mobility business.
S Ravi Kumar, the President of business development at Bajaj Auto has seen a lot. Kumar has been with the company several decades and has witnessed its transformation into a global player. Bajaj Auto is considered amongst the most valuable two-wheeler companies in the world, in terms of market capitalisation.
In a rare communication with the media, Kumar who has contributed to the crafting of many alliances, right from Kawasaki, KTM, Triumph and Yulu, shared his insight on the strategic partnership with Yulu and what the rationale is behind a multitude of alliances that the company has enjoyed over several decades.
What was the rationale behind investing in Yulu?
The larger story these days is that knowledge is dictating capital. It is abundantly available. Capital is at disposal for every good idea. In the past, capital was cash. So many ideas didn't find capital. Now it's the opposite, you will get it if you have a good idea.
Our strategic intent was displayed by the initial investment in Yulu, and we have been with them in every stage of investment. During the recent Magna infusion, our stake is slightly under 19 percent right now.
So, we are finding that this is a very good business model. Now with this expansion (in India or globally), this need will get fulfilled and we will be with them in all places wherever needed. Yulu is looking to source 7,0008,000 bikes per month at the moment and increasing it to a lakh units by the end of the year.
With rising demand from Yulu, how is Bajaj Auto going to manage the capacity?
This story is from the 15th March 2023 edition of Autocar Professional.
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This story is from the 15th March 2023 edition of Autocar Professional.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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