Business

Royal Enfield and Ducati, a love story for bikers

08 May 2017 | By Anish Chakraborty
Royal Enfield may end up buying Ducati

Rumors have surfaced suggesting that the Indian firm Royal Enfield is eyeing Italian superbike maker Ducati for a possible acquisition.

If this deal goes through, it would probably be termed as a perfect love story, which bike enthusiasts in India would swear by.

These two iconic brands have often been at crossroads and it's about time they meet.

Here's all about it.

In context: Royal Enfield may end up buying Ducati

08 May 2017Royal Enfield and Ducati, a love story for bikers

Royal EnfieldTruly "Royal" Enfield

If you want to ride through the mountains, you need an Enfield as your ally and over the years Royal Enfield has become a cult symbol.

Royal Enfield maker Eicher Motors posted its highest-ever consolidated revenue of Rs. 1,888 crore in Q4 results, showing their mettle at a time when two-wheeler makers are reeling from BS-III to BS-IV transition.

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Italian prince of bike racing

Ducati and VolkswagenItalian prince of bike racing

Ducati is no less than a royalty when it comes to bike-racing and something of a Hollywood darling with appearances in the Fast and the Furious series, Kick Ass 2 and in the iconic scene of Matrix.

But it appears that its parent firm i.e. Germany's Volkswagen group has fallen on hard times owing to its diesel emissions scandal, which has propelled the rumours.

Acquisition plansPocket pinch of the marriage

Supposedly, the embattled Volkswagen group is mulling on selling Ducati and has brought investment-banking boutique Evercore to chalk up a list of candidatures that will be suitable to make such an acquisition.

If the group actually fixes upon making the leap, it's estimated that approximately Rs. 10,500 crore could be raked up for the Italian bike company when it will be up for grabs.

Siddhartha LalNever let a good deal go

As usual things are pretty hushed at both ends, but MD & CEO of Eicher Motors, Siddhartha Lal did divulge to TOI, "Without saying absolutely no to anything - because we never say never - we are so zeroed in on our own opportunity that we do not want anything to distract us."

But a good deal is never distracting, is it?

Good timeNow, we wait and we pray

Volkswagen group has to take a call soon enough as funds are running out, according to reports, $18.2 billion for fines and expenses are already on the list due to the emission scandal.

Royal Enfield is performing at its all-time best and this is a good time to go for an acquisition spree; an Italian legend would be a good place to start.