Founded by James
Lansdowne Norton in Birmingham (in 1898), Norton Motorcycles is among the most
popular British motorcycle brands of all time.

TVS
Motor Company on Friday announced the acquisition of the United Kingdom’s most
iconic sporting motorcycle ‘Norton’ in an all-cash deal, for £16 million, by
acquiring certain assets of Norton Motorcycles (UK) (in administration),
through one of TVS Motor’s overseas arms.
This
would be among the most interesting acquisitions of a storied motorcycle maker,
and reflects TVS’ and India’s rapidly rising prominence in the global
two-wheeler market, said the company.
Founded by James Lansdowne
Norton in Birmingham (in 1898), Norton Motorcycles is among the most popular
British motorcycle brands of all time.
Since the 20th century,
Norton has been renowned for its classic models and eclectic range of luxury motorcycles,
ranging from the authentic retro classic reboots of the famous Commando to
their contemporary 200 bhp, 1200cc V4 super-bikes.
Sudarshan Venu, joint
managing director of TVS Motor, said: “This is a momentous time for us at TVS
Motor Company. Norton is an iconic British brand.”
Norton had some management
issue, which TVS - with its global supply chain capabilities and financial
support - helped overcome.
Though there will be some
concerns in the short term due to COVID-19, TVS Motor has enhanced its
cost-reduction measures, and cut down on capex.
Given the nature of Norton,
which is not a capex-heavy business, there seems no immediate concern.
Manufacturing will continue
in the existing facility, and there are many customer orders that will be
fulfilled in a profitable manner.
The immediate focus would
be on developed markets, in which Norton is already present, before expanding
in key developing markets.
The company has a strong
relationship with BMW, which will continue. Venu said, “TVS Motor will work
closely with customers and employees in building the success and pre-eminence
of the Norton Motorcycles brand.”
“It is a brand, which gives
us a huge opportunity to scale up and create value.
"The funding has been
through internal accruals.
"It is an asset
purchase, since this company had a slightly rough time in the last few years,
we have not taken any past liabilities or responsibilities,” he added.
The company has committed
to absorb all 55-60 employees.
“We also see synergies
across supply chain and distribution, and are looking forward to the products
in the pipeline.
"We have got the IP
and the brand rights,” said Venu.
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