Ducati Energia, Kinetic Group in 50:50 JV

Pune, Aug 24 | Updated: Aug 25 2006, 05:30am hrs
The Euro 100 million Ducati Energia of Bologna, Italy and Kinetic Communication, a Kinetic Group company, are setting up a 50:50 JV, Ducati Energia India Pvt Ltd for auto electrical components.

Manish Motwani, MD, Kinetic Communications and also MD of Ducati Energia India said, the Rs 15 crore JV would simultaneously start manufacturing for both the domestic demand and the export markets. Motwani said the JV would look at exporting 50% to Ducati while the other half will find its way into the domestic market including Kinetic's inhouse requirement.

Ducati Energia will become an important outsourcing hub for Ducati Energia for the Far East, European, and other worldwide market, he said.

Ducati Energia has a call option to acquire the partner's 51% in the future and this is more to protect their technology, Motwani said.

Ducati Energia India will produce flywheel magnetos, CDI, ignition system, regulators and ECU for two and three wheeled vehicles. Ducati Energia will set up its own manufacturing facility at Chinchwad in Pune and will employ 200 people.

Ducati manufactures electronic and contact ignition systems for mopeds, scooters, motorcycles and stationary engines. It also produces electronically controlled battery-recharging systems for two-wheeled vehicles and stationary engines and permanent magnet starters.

Ducati supplies to Piaggio, Aprilia, Honda Italia, Malaguti, Yamaha Motor, Bombardier, Rotax, Derbi, MBK, Rieju, Polaris, MVAgusta and Suzuki-Motor.

This venture is part of Ducati's internationalisation strategy and the JV in India follows fully owned plants in Romania and Croatia while focus in Italy is on R&D and new product generation.