Watch maker Ajanta to make bikes now

NEW DELHI: The already overcrowded motorcycle market in India is set to witness the entry of another home-grown player. Gujarat-based watch-to-consumer electronics maker Ajanta Manufacturing Ltd (AML) is scripting a new diversification strategy and plans to foray into the motorcycle market in India with a little help from China.
AML has sought the government nod to set up a new bike-making facility in Kutch, which will roll out a range of electric motorcycles and mopeds for sale in India.Sources said the firm is sourcing technology for this foray into motorcycles from China, where AML already has a large industrial presence to make watches and clocks.
"The firm has already completed negotiations with technology providers in China, and plans to set up a facility in Kutch. This unit will, besides producing electric motorcycles and mopeds, also roll out electric cycles," the source told The Times of India.
Ajanta Manufacturing director Jaisukh O Patel confirmed the move saying: "The group feels there is a huge scope in rolling out electric bikes in the country. We have sought the government nod for setting up this project in Kutch, but a formal business plan for this foray is yet to be prepared. It's still in the planning stages."
Patel said the firm is in the process of finalising investment and other details concerning this diversification.
AML is the latest Indian business group to look at foraying into the motorcycle market in India with the Chinese. Mahindra & Mahindra (M&M) is also in talks with two Chinese firms to set up parallel joint ventures to make mainstream motorcycles in India. Besides, IT firm Xenitis and NRI Prasun Mukherjee have floated motorcycle-making JVs with Chinese firms in India.
"With the steady increase in fuel prices, we feel that there will be a huge demand for electric bikes," Patel said.