Here's a look at the high-stake negotiations.
15 Aug 2024 | 34883 Views | By Shahkar Abidi and Sarthak Mahajan
In the waning months of 2016, David Bennett, the steadfast custodian of the storied BSA Motorcycle brand since its decline in the early 1970s, reached out to Anand Mahindra, the chairman of India’s automotive giant, Mahindra & Mahindra. Bennett had a proposition—BSA, a once-legendary name in the world of motorcycling, ...
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In the waning months of 2016, David Bennett, the steadfast custodian of the storied BSA Motorcycle brand since its decline in the early 1970s, reached out to Anand Mahindra, the chairman of India’s automotive giant, Mahindra & Mahindra. Bennett had a proposition—BSA, a once-legendary name in the world of motorcycling, was up for sale. The idea of reviving the venerable British marque thrilled Mahindra, who possessed both the financial clout and the strategic ambition to breathe new life into the brand.
But as is often the case in the labyrinthine of corporate negotiation, progress was slow. For over half a year, discussions meandered, and just when the finish line seemed within reach, a rival Indian conglomerate swooped in, threatening to steal the prize. Fate, however, had other plans. Six months later, Bennett was back on the line. The rival was apparently taking too long to seal the deal, and the question was simple: was Mahindra still interested? “With the speed of lightning,” Mahindra recalled. He contacted his team, and within 48 hours, the deal was done, bringing BSA into the fold of Mahindra's Classic Legends Pvt Ltd.
Anupam Thareja, co-founder of Classic Legends Pvt Ltd, joined the conversation, reflecting on his exchange with David Bennett. “When I called David, I could tell he was unhappy,” Thareja recalled. "I asked him why, especially since he was being offered more money. David replied, ‘I’m in my mid-eighties, sipping my single malt here in the UK. All I want is to see this bike back on the road." We showed him our vision, and I believe that helped sway his decision. What followed was Mahindra’s remarkable deftness and speed in closing the deal, which was truly impressive."
Mahindra and Thareja spoke while announcing the launch of the BSA Gold Star 650 in India, starting at Rs 2.99 lakh (ex-showroom Delhi), after introducing it in the UK in 2021. In India, it will compete directly with the Royal Enfield Interceptor 650, Benelli 502C, and others. The BSA Gold Star 650 is also sold in Europe, Turkey, New Zealand, and the Philippines. Furthermore, the motorcycle is readying itself to enter the US, Australian, and Japanese markets soon after.
Founded in 1861 in Birmingham, England, the Birmingham Small Arms Company (BSA) evolved from a firearms manufacturer to the world's largest motorcycle producer by the 1950s. During both World Wars, BSA played a crucial role, producing over 126,000 motorcycles for military use in World War II alone. BSA’s connection to India dates back to the pre-independence era, when its motorcycles were favoured by British officials and affluent Indians, the company informed.
Market to grow 2x-3x
Thareja highlighted that India’s 650 cc motorcycle segment is split between imported CKD models and locally produced bikes. Currently, the market is around 15,000 to 20,000 units, but it’s expanding rapidly, with the potential to double or even triple soon. He noted that the manufacturing capacity at their Pithampur plant in Madhya Pradesh is flexible. Initially, their existing brands, Jawa and Yezdi, had a capacity target of 60,000 units. However, with the introduction of the BSA brand, the combined target across all three brands has now increased to 100,000 units.
In February of this year, the company announced plans to establish a new factory for BSA bikes in the UK in the next fiscal year. The bikes produced at this facility will cater to both the domestic market and exports to Europe, the US, Japan, and other regions.
Additionally, Classic Legends recently entered into a joint venture with the Murugappa Group-backed Tube Investments of India Ltd. to use the BSA trademark in India.
Classic Legends' executives revealed that the company has invested Rs 350 crore so far in upgrading facilities, conducting R&D, setting up manufacturing plants, and launching new products.