Ducati, the most iconic brand among high-performance motorcycles could soon be owned by an Indian company. Royal Enfield is understood to have been approached to acquire Italian superbike maker Ducati, owned by Germany's embattled Volkswagen group.
According to reports, VW, reeling under a crippling diesel emissions scandal, has tasked investment banking boutique Evercore to evaluate possible options for a sale of Ducati. The Italian company could fetch a valuation of about $1.5 billion Euros (approximately Rs 10,500 crore), according to estimates.
Royal Enfield, a part of Eicher Motors, has been witnessing healthy growth in India even as it expands aggressively in overseas markets across Europe, North America, and Asia. Sources said that Eicher MotorsBSE 2.73 % - which is looking to attain global leadership for Royal Enfield in the middle-engine category - is examining the terms related to the acquisition, possible asking price, and how Ducati could fit within its own fast-growing operations.
Ducati is owned by Volkswagen's premium car division, Audi, and was acquired by the German auto major in 2012 for 860 million Euros (about Rs 6,000 crore). Its current portfolio is dominated mainly by motorcycles powered by engines between 800cc and 1,200cc, a segment which is completely missing in Royal Enfield's portfolio.
Article source : EconomicTimes