Bajaj Auto exec says alliance around the corner

Bajaj Auto is close to forming an alliance but the name of the other party would be announced once the formalities were completed, Chief Financial Officer Kevin D`sa told analysts at a post-earnings call on Friday.

The comment, initially made at Bajaj Auto`s annual meeting late on Thursday, sparked speculation in local media that the Indian motorbike manufacturer may be close to a partnership or deal with iconic European motorcycle brand Ducati, which is being sold by Germany`s Volkswagen. http://bit.ly/2gP63JB

Reuters on Thursday reported that beside Italy`s Benetton family and U.S. buyout fund Bain Capital, Indian firms Eicher Motors and Bajaj Auto have also bid for Ducati.

When asked on the earnings call whether reports on an alliance were true, D`sa said, "Whatever media statement has come out is factually correct. There is an alliance around the corner. There is a statement we had made in the AGM that the two partners have by and large agreed on everything else."

"The lawyers are drafting the agreement. Hopefully there will be a signature on that," he said.

"What we`re not reporting and commenting on is the name of the other party."

When asked about the product segment that the alliance would be in, D`sa said it would be in motorcycles.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)