Classic Legends Pvt Ltd, Mahindra & Mahindra’s premium bike arm, has entered into a joint venture agreement with Tube Investments of India Ltd (TIIL) to use BSA marks in India.
TIIL is a part of the Murugappa Group of companies and manufactures bicycles, components, transmission and engine parts for four-wheelers and two-wheelers, automotive and industrial chains, precision steel tubes and fitness equipment. Classic Legends sells Jawa, Yezdi, and BSA motorcycles in the country.
“CLPL and TIIL have agreed to incorporate a Joint Venture company (“JVC”) with shareholding in the ratio of 50:50 for the purposes of using the BSA Marks in India for motorcycles, their parts and accessories to be manufactured and sold by CLPL, in accordance with the terms and conditions of the Joint Venture Agreement and the Master Trademark Licensing Agreement to be executed between CLPL, TIIL and the proposed JVC,” Mahindra & Mahindra Ltd informed in a stock exchange filing.
Further, the company informed that CLPL and TII will be investing ₹50,000 each in the equity shares of JVC at the face value of ₹10 per equity share and will hold 50 per cent each in the equity share capital of the JVC.
“Significant terms of the agreement between TII and CLPL include Capital Structure, Board of Directors, Reserved Matters, Management of the JVC and Intellectual Property. The Board of JVC would comprise four, directors from which TIIL shall be entitled to nominate two. directors and CLPL shall nominate two Directors,” mentioned the company.
Earlier, Classic Legends had announced an investment of ₹1,000 crore over three years to ramp up product development, marketing, and distribution. 50 per cent of the investment will be used for rolling out BSA bikes in the international market.