A week ago, Chennai headquartered motorcycle manufacturer TVS acquired British heritage brand Norton Motorcycle in an all-cash deal remuneration of GBP 16 million, setting a new timeline for the company’s future. TVS was planning to get its hands on the approximately 150 Crore since the British brand went into administration in January.
Norton Motorcycles have had their ups and downs in terms of business and the 122-year-old brand has been brought to the brink of extinction and reincarnated several times now. The brand has been reported to have a poor business record and coupled with financial mismanagement allegations the company was put under administration.
TVS which largely deals in commuter segment motorcycle and has popularised itself with its history of small capacity, affordable mopeds has humble roots but rolls out nearly 400 million units a year. The Chennai based brand promises to bring back Norton’s former glory that the brand set with its bespoke craftsmanship, its history and its heritage.
Norton’s operations are likely to be kept separate from TVS and therefore the brand has created a separate management team comprising of former Harley-Davidson, Europe MD as the CEO. Norton Motorcycles will continue to be designed and manufactured in the UK but at a new production facility. The brand will also receive additional engineering capabilities from TVS Motors but also add ties with Warwick Manufacturing Group (WMG) with whom TVS has been working together in the field of advanced engineering.
Norton is one of the most exclusive brands in the world and last year it produced less than 400 units. The brand portfolio includes the Dominator, Commando, V4RR and their iterations. The management team’s prime focus is to restart and scale up the production.
TVS with Norton Motorcycles targets to scale up the business, bring value and become a significant player in the international market starting from its home base the United Kingdom, Australia, Malaysia, Thailand and North America. Norton Motorcycles has its presence in 21 countries with 76 dealers including Pune-based Kinetic Group’s multi-brand business Motoroyale. The brand is also likely to set its foot again in the Indian market.
*British Pound to Indian Rupee conversion at live mid-market rates, for informational purposes only.