KBX to export brakes to SE Asia by Oct '06

KBX Motorbike Products, a 50:50 joint venture between Kalyani Brakes and Italy's Brembo, plans to export two-wheeler brakes to southeast Asia by October 2006.

"We only market our brakes domestically. We are thinking of expanding to countries like Malaysia, Thailand, Indonesia, Vietnam and Philippines. The process of appointing distributors in these countries is under way," said S N Pangarkar, executive vice-president at Kalyani Brakes.

Southeast Asia is one of the largest markets in the world for two-wheelers with an estimated size of five million units annually. Along with local bike manufacturers, KMP is also looking to forge ties with companies like Bajaj Auto and TVS, which are likely to set up assembly units in southeast Asia.

Bajaj is planning to set up an assembly unit in Indonesia with a JV partner. TVS is in the process of starting a bike manufacturing plant with a capacity to make 1.2 lakh bikes a year and is expected to start production by the last quarter of FY07.

Currently, KMP exports its brakes only to Brembo. The company expects to achieve a turnover of Rs 90-100 crore in the first year of operations and to double it over the next four years.