ajaj Auto Limited (BSE: 532977, NSE: BAJAJ-AUTO) announced that its Board of Directors has approved an additional capital infusion of up to USD 10 million (equivalent to ₹84 crore) into its wholly owned subsidiary, Bajaj Do Brasil Comercio De Motocicletas Ltda (“Bajaj Brazil”). The capital will be infused in a phased manner to support the subsidiary’s business expansion and growing operations in Brazil.
Bajaj Brazil, incorporated in March 2022, operates in the automobile sector, focusing on motorcycle sales, particularly under the Dominar brand. The company generated ₹250 crore in revenue over the last four quarters, with sales of approximately 9,000 motorcycles.
Key Details of the Investment:
- Capital Infusion: Up to USD 10 million (₹84 crore).
- Purpose: To fund business expansion in the growing Brazilian market.
- Nature of Transaction: A related party transaction conducted on an arm’s length basis.
- Ownership: Bajaj Brazil will continue to be a wholly owned subsidiary of Bajaj Auto, with no change in shareholding.
Bajaj Brazil recently commissioned its own manufacturing facility in the Manaus Free Trade Zone with an annual capacity of 20,000 units on a single shift basis. The facility is expected to bolster the company’s presence in the Brazilian market, which has shown promising growth potential.
The additional investment reflects Bajaj Auto’s commitment to expanding its footprint in Brazil, a key market for its international operations.
