Just thinking aloud:
1. Maybe Atul Auto is planning to bring in a strategic partner soon, where Mr. Kedia sells out to the strategic partner? This way, the promoters will continue to have the controlling stake and Mr. Kedia gets a great exit?
2. Considering the alternate scenario of Mr. Kedia buying for the long-term – Can a small player like Atul Auto match the big players in terms of technology, investments and market reach? If he thinks they can’t, Mr. Kedia will not want to buy a stake for the long-term?
3. Apart from the conventional players like Bajaj Auto, Piaggio, TVS and M&M (market leader in EV 3-wheelers), Murugappa group’s TI cycles has recently entered EV 3-wheelers and there are also startups like Euler. Could these players be interested in Atul Auto’s strong brand and presence in Gujarat/Rajasthan, the distribution network and manufacturing base? Also, possibly a foreign player sees a big opportunity in the EV 3-wheeler space in India and wants to enter through a strategic partnership with Atul Auto?
Thoughts please?
Disclosure: Invested.
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