Pune-based DSK group, a R4,000-crore company with interests in construction and real estate, on Wednesday announced the acquisition of the motorcycle business of Garware Motors. Garware Motors assembles and sells Korean S&T Motors’ Hyosung heavy bikes in India.
Both companies did not disclose the size of the deal.
“We will ramp up the assembly capacity from 10 bikes a day to 20 bikes,” Shirish Kulkarni, director, DSK group, told HT. “We plan to increase localisation up to 90% and to introduce a full range of Hyosung bikes in India.”
The new entity, which will be known as DKS Hyosung, will have 40 dealerships by the year end. All existing 18 dealerships of Garware Motors will be transferred into DSK Hyosung.
Hyosung bikes are currently sold in India in the range of R6- 7 lakh. With a depreciating rupee, holding the price at these levels has become a challenge. “With aggressive localisation we want to bring prices down to the R4.5-5 lakh levels,” said Kulkarni.