Motoroyale Kinetic, which sells multi-brand superbikes in India, is planning to set up a second assembly plant at Supa in Ahmednagar, said a top official.
“Currently, we have an assembly plant in Ahmednagar with a capacity to assemble 8,000 bikes per year,” said Ajinkya Firodia, managing director, Motoroyale Kinetic Pvt. Ltd.
The new plant would have a capacity to assemble 60,000 bikes a year. It would have an investment of ₹12 crore and the unit would go on stream in mid-2019, he added. Motoroyale has tied up with leading international brands such as MV Agusta, Norton, F.B Mondial, SWM and Hyosung for selling its superbikes.
It also has a joint venture with the iconic British motorcycle-maker Norton.
The market size for superbikes (350cc to 1,000cc) in India is 13,000 units and growing 20% annually. Next year, Motoroyale plans to sell 2,500 superbikes.
Global brands
“Right now, we have nine superbikes, belonging to five international brands, in our portfolio. A couple of brands are imported as completely knocked down units and assembled at Ahmednagar. Presently, these bikes have an indigenisation level of 50% which will be increased to over 70% in the coming years,” he said.
On Norton, he said: “Initially, we will sell 37 bikes [limited edition] that are purely made in Britain. Beginning March-May, some of the parts and accessories such as frames, silencers, castings, seats, swing arms and headlamps, will be made in India. This way, we are targeting to reduce the price by 40%.”
Motoroyale had invested ₹30 crore in working capital and assembly lines. “Going forward, we require about ₹75 crore to ₹100 crore funding and are talking to two or three private equity firms. It may lead to dilution of our stake by 25-30%. We may need the money now, or six months later. If it happens later, then the dilution will be 10% to 15%,” Mr. Firodia said.
Mr. Firodia was in the city to open a superbike showroom. By 2019, the company plans to have 18 dealers in top Indian cities and about 30 in the next year.
He also said the company was mulling producing superbikes of 300cc to 500 cc in the price range of ₹2 lakh to ₹3 lakh.
