Date:21/01/2004 URL: http://www.thehindubusinessline.com/2004/01/21/stories/2004012100120300.htm

Back Aprilia mulls boutique showrooms in India

S. Muralidhar

New Delhi , Jan. 20

APRILIA, the Italian two-wheelers and racing bikes manufacturer, is planning to set up exclusive boutique showrooms in India for selling some of its high-end motorcycles and high technology motoscooters.

The Italian company, one of the most successful manufacturers of the modern day scooterette, is seeking the assistance of Hero Motors, its Indian technology alliance partner for setting up these boutiques. Through the exclusive boutiques, Hero Motors and Aprilia will import and market Aprilia's high-end motoscooters and bikes, some of which will cost over Rs 2.5 lakh.

Additionally, the boutiques will also serve as the brand's showcase in India, thereby educating the Indian customer about the Aprilia brand, its technological strengths and also offer imported accessories for biking afficianados. The plans to import could include the launch of Aprilia's Scarabeo range of high-end scooters and motoscooters and the Tuono range of motorcycles. Many of these two wheelers incorporate high luxury, easy to operate features and sport engines that are over 500cc in size.

The planned boutiques will be opened initially in the major metros, where the company sees the potential for selling these expensive, high performance two wheelers. While the first couple of years will see the company and its partner import the bikes in the fully built form, later, as the partner's synergies develop from their technological collaboration agreement, part production or assembly in India.

Speaking to the Business Line, Mr Pankaj Munjal, Managing Director of Hero Motors, said that the Italian company in the process of shortlisting the bikes and motoscooters that will be the most suitable for the Indian consumer. Depending on the feedback and the expectations of its potential customers, Aprilia is expecting to bring in the right products later this year. Mr Munjal added that the Italian products will cater to a niche, exclusive quality conscious segment of the Indian bike buying population. But the showrooms are expected to come up first before the products.

Hero Motors has a technological collaboration agreement with the Italian company. The technology partnership is valid for a period of eight years and is in the form of a trademark and licensing agreement. Under the agreement between the two partners, Aprilia will transfer technological knowhow including design, engineering, testing, manufacturing and quality standards. Under the first phase of the partnership, Hero Motors is expecting to obtain the technology and the related licensing for the manufacture of two scooterettes and one motoscooter. The automatic transmission scooterettes will be on the same platform and design, but will sport a 75cc engine and a 92cc engine between the two of them.

The motoscooter, which will be the next product, will feature a 125cc engine and offer a sporty, futuristic design. Mr Munjal added that Hero Motors is proposing to invest about Rs 150 crore for a new assembly line and manufacturing plant at Gurgaon, near Delhi. These products are expected to be completely localised and manufactured at this new facility. The company is expected to clock an annual turnover of about Rs 350 crore to Rs 400 crore, once full production is commenced. The two companies are also expected to collaborate for the development of new electronic fuel injection systems that enable their products to meet future Euro III emission norms.