Both CLPL and TIIL will each hold 50% of the paid-up share capital in the JVC. They will initially invest INR 50,000 each in the equity shares of the JVC, with the face value set at INR 10 per share. The key terms of the agreement include elements such as capital structure, board composition, reserved matters, management, and intellectual property.
The JVC's board will consist of four directors, two nominated by TIIL and two by CLPL. This structuring aims to provide balanced governance and oversight over the JVC's activities.
"The initial investment made by CLPL in the JVC would not fall under the purview of Related Party Transactions of the Company."
TIIL operates in various sectors. It manufactures and markets products such as bicycles, fitness equipment, car door frames, transmission and engine parts for automotive and industrial applications, and precision steel tubes and strips.
For the fiscal year ended March 31, 2024, TIIL reported a revenue of INR 16,890 crore, with a net worth of INR 5,100 crore. This solid financial performance underscores TIIL's capacity to support the new venture.
"CLPL and TIIL desire to establish the JVC for the purposes of using the BSA Marks in India for motorcycles, its parts and accessories to be manufactured and sold by CLPL."
Overall, this joint venture endeavours to leverage the BSA brand's historical significance in motorcycles within the Indian market, combining the strategic strengths of both companies. The collaboration is expected to capitalize on both entities' expertise, setting a promising direction for future growth in the motorcycle industry in India.
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