In a landmark deal, India’s leading two-wheeler manufacturer TVS Motor Company has acquired the iconic 122-year-old United Kingdom bike brand Norton for 16 million pounds, or around Rs 150 crore in an all cash transaction. The Chennai-based company finalised the acquisition through Project 303 Bidco Ltd, a newly incorporated company under its Singapore subsidiary TVS Motor Singapore, specifically to acquire Norton. The deal reflects TVS’s rising prominence in the international two-wheeler market and marks the trend of Indian companies acquiring an iconic British brand, after Jaguar Land Rover became part of Tata Motors.
The deal, according to Sudarshan Venu, joint managing director, TVS Motor is in line with the company’s effort to cater to the aspirations of discerning motorcycle customers. He underlined that Norton would continue to retain its distinctive identity with dedicated business plans and TVS Motor will work closely with the customers and employees of the British company.
The funding has been through internal accruals. It is an asset purchase as Norton has been going through a tough time with its annual sales plunging to 500 units in the past two years. TVS Motor has not taken any past liabilities or responsibilities.
In recent times, TVS Motor has been quite active in acquiring companies. In March this year, it made additional investments in New York City-based big data analytics startup Scienaptic Systems, a company set up in 2014 by Pankaj Kulshreshtha. This was done to augment the company’s technology platform to improve customer experience. Last year, it invested $3.85 million in startup Tagbox Solutions, a machine learning company. TVS had also invested in Pune-based Altizon Systems, a company that develops solutions based on the industrial Internet of Things.
About TVS Motor
It is the third-largest motorcycle company in India. In FY20, it recorded net sales of Rs 18,849 crore as compared with Rs 20,160 crore in FY19. The company reported net profit of Rs 655 in FY20 as compared with Rs 724 crore in FY19. It has an annual sale of more than three million units and an annual capacity of over four million vehicles. The company is the second-largest exporter in India with exports to over 60 countries.
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