Pune-based Kinetic Motors, have recently acquired the manufacturing and distribution rights for seven modern scooters from Italjet- an Italian scooter maker, renowned for its innovative design capabilities.

Having acquired the rights for the domestic and overseas markets on a one-time payment basis, Kinetic plans to launch 7 scooter models including Jet Set (100-150cc), Dragster, Formula (scooterette), Torpedo (retro scooters), Velocifero, Millennium and Jupiter— over the next two years. Powered by Kinetic engines, with capacities from 75cc to 250cc, Kinetic will have to pay royalty to Italjet for exporting the scooters.

Kinetic group chairman, Arun Firodia, suggested that it had been a coup of sorts for Kinetic, since investments required for developing such models from scratch would have been in the region of US $ 44.44 m.

The move by Kinetic motors comes close on the heels of Hero Motors striking a marketing alliance with Italian major Aprilla. The ungeared scooter segment on the whole has been witnessing a lot of action. With a high growth rate during the last two to three years, it has reached a level of around eight lakh units annually, which is almost double of the geared scooter sales.

TVS plans to invest approximately US $ 133.3 m, part of which will fund the company’s overseas foray. The Company is looking at setting up in Indonesia and Thailand and will firm up its assembly/manufacturing strategy by August-September.

Known to have taken a hit on its motorcycle volumes this year, thanks to the 10,000-12,000 units per month drop in the sales of the two-stroke Max-100, TVS expects to make up for it with the newly-launched Centra.

With a unit target of 300,000— TVS aims to sell 1.2 m motorcycles and 1.6 m two-wheelers in ’04-05. It is also targeting a 50 per cent rise in exports to 50,000 units next fiscal.

Domestic pharma major, Sun Pharmaceuticals, is in the process of negotiations for the acquisition of a US $100m size generic US company

The move is in keeping with the Company’s new growth strategy that aims to increase the share of its international operations in the total revenue to about 50 per cent. Its existing US subsidiary Caraco Pharmaceutical Labs was expected to net in revenues to the tune of US $ 45 m in ‘03. With US operations aimed to touch US $100 m over the next two years, the Company also plans to file 10 ANDAs (abbreviated new drug applications) annually

With major investments in R&D, Sun intends to make filings in the US for complex compounds. Hence the need for a 2nd acquisition, which could manufacture such drugs.

Banking solutions company i-flex Solutions, has set up a wholly-owned holding company, iflex America for carrying out all future acquisitions abroad. Set up with a capital base of US $15m, iflex America will be the umbrella structure for all new acquisitions

The acquisitions that the Company is looking at are part of its build, align, acquire (BAA), strategy for growth; leveraging the i-flex strength in a global rollout with product and market focus.

CFO Mr Deepak Ghasias stressed, “Funds for acquisitions are no issue“, since i-flex is flush with US $140 m cash reserves apart from the option of going in for an ADR float.

i-flex has invested US $15 m on doubling capacity at its Bangalore and Mumbai operations.
With the US accounting for 37 per cent of its business, it is also setting up a nearshore facility in the country to service customers closely.