Norton had some management issue, which TVS — with its global supply chain capabilities and financial support — helped overcome. Though there will be some concerns in the short term due to Covid-19, TVS Motor has enhanced its cost-reduction measures, and cut down on capex. Given the nature of Norton, which is not a capex-heavy business, there seems no immediate concern. Manufacturing will continue in the existing facility, and there are many customer orders that will be fulfilled in a profitable manner.
The immediate focus would be on developed markets, in which Norton is already present, before expanding in key developing markets. The company has a strong relationship with BMW, which will continue. Venu said, “TVS Motor will work closely with customers and employees in building the success and pre-eminence of the Norton Motorcycles brand.”
“It is a brand, which gives us a huge opportunity to scale up and create value. The funding has been through internal accruals. It is an asset purchase, since this company had a slightly rough time in the last few years, we have not taken any past liabilities or responsibilities,” he added.
The company has committed to absorb all 55-60 employees.
“We also see synergies across supply chain and distribution, and are looking forward to the products in the pipeline. We have got the IP and the brand rights,” said Venu.