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NEW DELHI: The overcrowded motorcycle market in India is set to witness the entry of another home-grown player. Gujarat-based watch-to-consumer electronics maker Ajanta Manufacturing is scripting a new diversification strategy and plans to foray into the motorcycle market with a little help from China.

AML has sought the government’s nod to set up a new bike making facility in Kutch, which will rollout a range of electric motorcycles and mopeds. Sources said the firm is sourcing technology for this foray from China, where AML has a large industrial presence to make watches and clocks.

“The firm has completed negotiations with technology providers in China, and plans to set up a facility in Kutch. This unit will, besides producing electric motorcycles and mopeds, also rollout electric cycles,’’ the source said.

Ajanta Manufacturing director Jaisukh O Patel confirmed the move. “The group feels there is huge scope to roll out electric bikes in the country.

We have sought the government nod for setting up this project in Kutch, but a formal business plan for this foray is yet to be prepared. It’s still in the planning stages,’’he said.

Patel said the firm is in the process of finalising investment and other details concerning this diversification. “We are sourcing the basic technology for the e-bikes from China.

Our group is into manufacturing consumer electronics and other electrical products, so it has the capability to produce a host of components for the e-bikes. This is being seen as a logical step forward for us,’’ he added.

AML is the latest Indian business group to look at foraying into the motorcycle market in India in association with Chinese companies. Mahindra & Mahindra (M&M) is also in talks with two Chinese firms to set up parallel joint ventures to make mainstream motorcycles in India.

Besides, IT firm Xenitis and NRI Prasun Mukherjee have floated motorcycle making JVs with Chinese firms in India. Unlike others, AML intends to focus only on electric bikes.

“With the steady increase in fuel prices, we feel there will be a huge demand for electric bikes, which run on rechargeable batteries. It’s this niche that we are trying to address,’’ Patel said.
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