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Mahindra acquires BSA Company and signs licencing agreement with Jawa

Team OD  | Updated: October 25, 2016, 04:11 PM IST

Mahindra and Mahindra isn't done with acquiring automobile brands yet. In 2015, it had acquired a 51 per cent stake in Europe-based Peugeot Motorcycles. Now it has acquired an iconic British motorcycle brand.

Classic Legends Private Limited (CLPL), a subsidiary of Mahindra and Mahindra, has acquired BSA Company for around Rs 28 crore. Mahindra and Mahindra owns a 60 per cent stake in CLPL. This acquisition will allow Mahindra to acquire or obtain licence of the brand and use the same for selling, marketing and distribution of motorcycles.


In an official release, the company has also stated that 'an exclusive brand licence agreement has been signed with the iconic Jawa brand'. CLPL will launch new products under the BSA and Jawa brands in around two years from now. The company has also stated that 'the new products will capture the character, DNA and ethos of these brands'.  Products under the Jawa brand will be introduced mainly for the Indian market, while the BSA brand products will be better suited to international markets. Also, all two-wheelers introduced under the BSA and Jawa brands will not get any Mahindra badging or logo. The Jawa motorcycles will be manufactured at Mahindra Two Wheelers' plant in Pithampur, Madhya Pradesh.

"Our focus on the premium, niche segment through Classic Legends will bring alive iconic brands like BSA and Jawa, not just in the form of products but as an entire life style," said Dr Pawan Goenka, executive director of Mahindra and Mahindra. CLPL will collaborate with Mahindra Racing's technical development centre in Italy to design and develop products that are in sync with the DNA of the BSA and Jawa brands.


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