KTM SWOT ANALYSIS, AND INFORMATION ABOUT THE COMPANY.

1. KTM
READY TO RACEK R O N R E I F & T R U N K E N P O L Z M A T T I G H O F E N
Headquarter – Mattighofen,
Austria
Navin Rai (16011)
Section – A
ICMB – School of Business Excellence

2. KTM-SPORTMOTORCYCLE AG
• It is an Austrian based company, owned by KTM sports motorcycle AG and Bajaj Auto
Ltd.
• KTM was formed in 1981.
• In 1992 the company was spun off from its parent company KTM when it ran into
financial troubles(KTM Sportmotorcycle GmbH, motorcycles division, KTM Fahrrad
GmbH, bicycles division, KTM Kühler GmbH, radiators division, KTM Werkzeugbau
GmbH, tooling division) and at present it has more subsidiary. But here we will be
focusing on Motorcycle business of the Company only.

3. KTM MOTORCYCLE
• KTM Sportmotorcycle GmbH started operation in 1992
• later took over the sibling tooling division KTM Werkzeugbau.
• 1994, KTM Sportmotorcycle GmbH was renamed KTM-Sportmotorcycle AG
• 1995 KTM acquired Swedish motorcycle maker Husaberg AB, and took control of the
Dutch company White Power Suspension.
• 1997 LC4 Supermoto and LC4 Adventure motorcycles are introduced by KTM.

4. OWNERSHIP
• KTM-Sportmotorcycle AG is owned by KTM AG (formerly known as KTM Power Sports
AG). In November 2007, Bajaj Auto Limited of India acquired 14.5% stake in KTM
Power Sports AG and increased their shareholding to 47% by 2012.
• At present KTM AG is 46% owned by CROSS KraftFahrZeug Holding GmbH, a
subsidiary of CROSS Industries AG and 52% owned by Bajaj Auto. CROSS Industries is
founded by KTM's current CEO Stefan Pierer.In India, Bajaj Auto has a stake of 78%
while CROSS AG owns 21% of company.

5. SUBSIDIARIES
• KTM-Racing AG
• KTM Events & Travel Service AG
• KTM Dealer & Financial Services GmbH
• Husaberg AB
• Husqvarna

6. DESIGN
• Since 1990, KTM motorcycles and automobiles (X-Bow) have been designed by
KiskaDesign, a Salzburg-based design firm. It is responsible for the overall branding for
KTM; including the design of the vehicles, shops, exhibits and printed material.

7. REVENUE
• KTM has add over 100,000 motorcycles to its volume of production, in 2015.
• the Austrians sold 180,801 KTM and Husqvarna motorcycles in 2015, making €1.02
billion in the process. This is a 14% increase over KTM’s sales in 2014, a 18% increase in
revenue, and a 26% in income (€95 million, EBIT). According to KTM, this makes them
the fastest growing motorcycle company in the world.
• According to the 2014 Annual Report (latest available) 54% of sales were in Europe,
23% in North America and 23% in the rest of the world. Only the 125cc and 390cc
bikes are made in India, and they are not the biggest part of the sales and do not have
the highest margins

8. • In India, its sales have more than doubled to 23,000 units in 2014-15 from 11,000 units
a year ago. Buoyed by the soaring sales, the two companies are now considering co-
developing the premium Husqvarna brand of off-road motorcycles in India for local
and overseas markets. In January 2013, KTM acquired Husqvarna AG from the BMW
group, renaming it Husqvarna Motorcycle GmbH. “India’s experience is a torch bearer
for all emerging markets—of the business potential of KTM and Husqvarna brands,”
• In calendar year 2014, KTM’s turnover grew 20.7% to €864.6 million, while net profit
jumped 56.6% to €57.2 million. It declared a dividend of €1.5 per share. Bajaj Auto’s
share in it was Rs.55 crore, according the company’s latest annual report. The KTM
models—RCs and Dukes—contribute Rs.1,000 crore to Bajaj revenue and are high-
margin products. With new models in the pipeline, Bajaj and KTM plan to double
volumes over the next five years, said S. Ravi Kumar, president and business
development and assurance at Bajaj Auto. KTM sold a record 159,000 units globally in
fiscal 2015-16.

9. SHARE RELATED
• ISIN - AT0000A0UJP7
• Market - Vienna Stock Exchange, Second Regulated Market.
• Issue Volume - EUR 85,000,000
• Denomination - EUR 500
• Maturity - 2012 – 2017
• Coupon - 4.375%
• Issue Price - 101.389%
• Number of shares as at 31 December 2015, is 10845000, Earning Per Share EUR 5.89,
Highest price EUR 140, Lowest Price EUR 99.69, Closing Price 122.00.
• 2515 employees as on 31 march 2015.
• 382 employee in R&D

10. SWOT ANALYSIS
• Strength – Good connect with potential customer, Unique and attractive design, Loyal
Customer, Strong Bike, high profitability and revenue.
• Weakness – High maintenance cost, Frequent Service, Fuel problem,
• Opportunity – New markets, venture capital, global markets
• Threat – Very Competitive Market, increasing costs
Scope for the Company
The company has a good scope for improving the product, & need to work on
distribution channels.