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'Future growth comes from emerging markets like India'

Q&A

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Danny Goodman New Delhi
Last Updated : Jan 29 2013 | 12:59 AM IST

How do you address the concerns of noise from Ducati's twin-engine, twin-cylinder motorcycles, especially in the West?
Don't call it noise. We call it the music of Ducati, which is deep and unique. But yes, we're cognizant of the concerns and are working on ways to reduce the sound. Moreover, despite the super performance of our motorcycles, our Euro 3 engine-kitted motorcycles have the lowest petrol consumption in the category of high performance bikes.

How do you plan to market such expensive motorcycles in India?
We will sell Ducati motorcyles on the twin platforms of luxury and high performance to a class of consumers comprising successful hyper-enthusiasts, who drive for entertainment. We hope to sell around 50 units in the first year. Also, we will leverage the expertise of Precision Motor India, which has extensive experience in selling luxury automobiles like Porsche in India.

What about past reports that you were being acquired by an Indian company, and you taking over another auto major in India?
These were rumours... including the one that Porshe was acquiring us. We are back in the black for FY 2008 after bad stints in 2006 and 2007. We had offered an IPO last year, where we divested up to 70 per cent of our shareholding, and 30 per cent is held by Italian PE funds.

You have a 50:50 JV with the Kinetic Group to manufacture auto components. What are your plans in outsourcing from India?
Currently, we have about five vendors supplying a range of parts, from engine components to cabling.

We aren't looking for cheap auto parts. We insist on quality components made available at competitive rates. Suppliers must demonstrate quality and innovation. A team of Ducati engineers would shortly arrive in India to expand this operation.

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How about manufacturing from India?
No decision for the moment.

What's your R&D spend and would you consider licensing technology to two-wheeler manufacturers in India?
After all, India is one of the largest motorcycle markets in the world.

On R&D, it's about 10 per cent of our top line earnings. On licensing technology

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First Published: May 13 2008 | 12:00 AM IST

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