Two and three-wheeler major Bajaj Auto Ltd has increased its stake in Austrian sports bike maker KTM to 25 percent and is planning to go for more.The Pune-based company had last year announced acquisition of 14.5 percent stake in the Austrian firm for about Rs 300 crore. It was further increased to 20.9 percent earlier this year.
Confirming the development, BAL Managing Director Rajiv Bajaj said the company had increased its stake in KTM to 25 percent "a couple of months ago".
Asked if BAL is likely to increase it more, he said, it is "going up further" without specifying details.
Bajaj also declined to comment on the valuation of the fresh stake acquisition in KTM citing confidentiality.
Last November, the two companies had entered into a 'wide-ranging cooperation' arrangement besides BAL picking up the 14.5 percent stake from open market.
Under the agreement, the companies planned to jointly develop high-efficiency bikes, sourcing for production and assembling of KTM bikes in India.
The jointly developed bikes would be produced at BAL's Chakan facility for export to Europe under KTM branding and the commuter version of the bike on the same platform could be sold in India under the Bajaj badge.
The companies were working on developing two platforms in India for motorcycles, which are expected to be commercially launched in the market by 2010. They have invested 35-40 million euro on the development of the platforms.
The agreement also envisaged BAL marketing KTM bikes in South East Asian countries, besides India.
Besides, the Austrian company was considering an alliance with Bajaj to bring its premium motor racing cars to India.