Bajaj Auto scouting for acquisitions?

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Bajaj Auto scouting for acquisitions?

Bajaj Auto has global aspirations and the company is scouting for acquisitions to ride into the big league reports CNBC-TV18.

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Bajaj Auto has global aspirations and the company is scouting for acquisitions to ride into the big league reports CNBC-TV18.

Bajaj Auto wants to ride to the top not just in India but also internationally. Chairman, Rahul Bajaj says the company hopes to be among the top 4 two wheeler companies in the world and attain the number one position in India by 2010. This is no pie in the sky, according to the latest figures Bajaj now has 36% market share in the motorcycle category and is just 30,000 units shy of market leader Hero Honda 's sales for July.

While Bajaj is confident of robust sales for existing models like the Pulsar, the company is also betting big on its new launch in September. But to make it to the international big league, will India's oldest two-wheeler company need to go shopping? Unconfirmed reports suggest Bajaj could be eyeing companies like Triumph and Ducati, which make fewer than 100,000 units per year. While the Bajaj management remains silent on specific targets, the chairman says an acquisition could be on their radar.

"Rajiv and team are looking not necessarily an ACQ, partial ACQ, could be initial collaboration, technical marketing production leading to equity major players in small 2 wheeler fields" said Rahul Bajaj, chairman, Bajaj Auto

Funding an acquisition should not be an issue for Bajaj. Rahul Bajaj says the company has access to almost Rs 6000 crore to fund possible acquisitions and expansion. Currently Bajaj has zero debt and could even look at raising Rs 10-15, 000 crore if the need arises. Infact the company is looking at setting up two new plants in Chakan, one two wheeler and the other for 3 and 4 wheelers. So what about the Bajaj- Renault alliance for what they call very competitive vehicles and will Bajaj's fight for 4 wheeler market share come at the cost of margins?