Brand Loyalty towards KTM and

YAMAHA
Organizational Profile (KTM)
Early years
In 1934, an Austrian engineer Johann (Hans) Trunkenpolzset up a fitter's and car
repair shop in Mattighofen. In 1937, he started selling DKW motorcycles, and Opel cars the
following year. His shop was known as Kraftfahrzeug Trunkenpolz Mattighofen, but the
name was unregistered. During the Second World War, his wife took care of the business
which was thriving mainly on account of diesel engine repairs.
After the war, demand for repair works fell sharply and Trunkenpolz started thinking
about producing his own motorcycles. The prototype of his first motorcycle, the R100, was
built in 1951. The components of the motorcycle were produced in house, except for the
Rotax engines which were made by Fichtel & Sachs. Serial production of the R100 started in
1953. With just 20 employees, motorcycles were built at the rate of three per day.
KTM 1953–1991
In 1953, businessman Ernst Kronreif became a sizable shareholder of the company
which was renamed and registered as Kronreif & Trunkenpolz Mattighofen. In 1954, the
R125 Tourist was introduced followed by the Grand Tourist and the scooter Mirabell in 1955.
The company secured its first racing title in the 1954 Austrian 125cc national championship.
In 1956, KTM made its appearance at the International Six Days Trials where Egon Dornauer
won a gold medal on a KTM machine.
In 1957, KTM built the Trophy 125cc first sports motorcycle. KTM's first moped, called
Mecky, was launched in 1957, followed by Ponny Iin 1960 and Ponny II in 1962 and Comet
in 1963. The 1960s also saw the beginning of the bicycle production in Mattighofen. Ernst
Kronreif died in 1960. Two years later in 1962, Hans Trunkenpolz also died of a heart attack.
His son Erich Trunkenpolz took charge of the company's management.
As the company continued to expand, the workforce totaled 400 in 1971, and forty years after
it was founded, KTM was offering 42 different models. Besides, KTM was able to produce
motorcycles for the racing industry. During the 1970s and 80s, KTM also started to develop
KTM Headquarters In Mattighofen
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and produce motors and radiators. Radiators sold to European car manufacturers constituted a
sizable part of the company's business in the 1980s.
In 1978, US subsidiary KTM North America Inc. was founded in Lorain, Ohio.
In 1980, the company was renamed KTM Motor-Fahrzeugbau KG. One year later,
KTM had about 700 employees and a turnover of 750m. Schilling (about 54.5m. Euro).
International business then amounted to 76 % of the company turnover.
However, scooter and moped turnover sank rapidly, and production had to be halted in 1988.
Erich Trunkenpolz died in 1989. Takeover of a 51 % interest in the company by the Austrian
investment trust GIT Trust Holding controlled by Austrian politician Josef Taus in 1989 was
followed by unsuccessful attempts to turn the indebted company around, and in 1991, KTM
management was transferred to a consortium of creditor banks.
KTM after 1991
In 1992, the company was split into four new entities: KTM Sportmotorcycle GmbH
(motorcycles division), KTM Fahrrad GmbH (bicycles division), KTM Kühler GmbH
(radiators division) and KTM Werkzeugbau GmbH (tooling division).
Now owned by KTM Motorradholding GmbH, which was formed by Cross Holding (a Cross
Industries daughter), and other investors, KTM Sportmotorcycle GmbH started operation in
1992 and later took over the sibling tooling division KTM Werkzeugbau. In the following
years, while steadily increasing production and turnover, investing in new production and R
& D facilities, introducing new models and successfully sponsoring and taking part in various
race sport events, the company underwent a series of restructurings and stakeholder changes
guided by KTM's managing director and Cross Industries owner Stefan Pierer. In 1994, KTM
started production of the Duke series of road motorcycles, in 1996, KTM motocross
machines were first decked out in KTM's signature orange color, and 1997 saw the
introduction of LC4 Supermoto and Adventure motorcycles. In 2007, the company debuted
the KTM X-Bow sports car.
In 1995, KTM Motorradholding GmbH acquired Swedish motorcycle maker
Husaberg AB and took control of the Dutch company White Power Suspension.
In 2007, Indian motorcycle manufacturer Bajaj Auto bought a 14.5% stake in KTM
Power Sports AG. By 2013, Bajaj Auto held a 47.97% interest in the company.
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In 2013, KTM acquired the formerly Swedish motorcycle maker Husqvarna
Motorcycles from its prior owner BMW Motorrad AG. The same year, KTM re-integrated
the brand Husaberg into Husqvarna Motorcycles from which it had spun off in the 1990s
when Husqvarna was sold to the Italian company Cagiva.
As the final result of the restructuring process, KTM Motorradholding GmbH had
become KTM AG in 2012. In 2015, KTM generated a turnover of over 1 billion Euro and
employed 2515 people by the end of that year. Of the four separate companies left after the
1992 split, three were now again part of the KTM Group: KTM Sportmotorcycle GmbH,
KTM Werkzeugbau GmbH and KTM Kühler GmbH (today WP Radiators). KTM Fahrrad
GmbH (KTM Bike Industries) remained an independent company and is owned by Chinese
investors. KTM-Group today contains the brands KTM and Husqvarna Motorcycles.
2.1. Management
Ownership
KTM AG is presently owned by CROSS KraftFahrZeug Holding GmbH (51,28 %)
and Bajaj Auto Limited International Holdings B.V. (47,99 %). CROSS KraftFahrZeug
Holding GmbH is a subsidiary of KTM Industries AG (prior to 2016 CROSS Industries AG),
founded by KTM AG‟s current CEO Stefan Pierer. KTM Industries AG is owned by Pierer
Industrie AG (74,89 %).
Subsidiaries
As of 2017, KTM AG has the following subsidiaries:
KTM-Racing AG (Switzerland, 100 %)
KTM-Sportmotorcycle India Private Ltd. (India, 100 %)
KTM Sportmotorcycle GmbH (100 %, distribution of motorcycles and parts)
Husqvarna Motorcycles GmbH (100 %, distribution of motorcycles and parts)
KTM Sportcar GmbH (100 %, production and distribution of the KTM X-Bow)
KTM Technologies GmbH (74 %, R&D services)
KTM Immobilien GmbH (99 %, owner of all property and buildings of the KTM
Group)
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WP AG (25 %, former White Power suspension GmbH, production of motorcycle
components)
Kiska GmbH (26 %, design company for the KTM Group)
Furthermore, KTM Sportmotorcycle GmbH and Husqvarna Motorcycles GmbH operate
24 respectively 7 distribution subsidiaries worldwide, most of them in European and Asian
countries and in the US.
Joint ventures
KTM started exporting their GS model to USA in 1968 through an American
importer, John Penton under the Penton brand. This Joint Venture lasted until KTM
established KTM America Inc. in Ohio in 1978.
In 2005, KTM-Sportmotocycle began a partnership with ATV manufacturer Polaris
Industries with the goal of shared R&D, and more importantly shared distribution networks.
This partnership was a two-year trial arrangement, at the end of which both parties had the
option of merging the two companies into one. In 2006, KTM announced that the partnership
with Polaris had been downgraded, and would instead only supply their 450cc and 510cc
RFS engines to Polaris.
In January 2008, Bajaj announced that it would jointly develop two new 125cc and
200cc bikes for Europe and the Far East. The bikes would be badged KTM. In January 2012,
Bajaj launched the Duke 200 model in India.
KTM operates distribution joint ventures in Dubai (KTM UAE), New Zealand (KTM
New Zealand), and the Philippines (KTM Philippines).
Yamaha company Profile
About Yamaha motors India sales Pvt. Ltd. Yamaha made its initial foray into India in 1985.
Subsequently, it entered into a 50:50 joint venture with the Escorts Group in 1996. However, in
August 2001, Yamaha acquired its remaining stake as well, bringing the Indian operations under
its complete control as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan. India Yamaha
Motor
operates from its state-of-the-art-manufacturing units at Faridabad in Haryana and Surajpur in
Uttar Pradesh and produces motorcycles both for domestic and export markets. With a strong
workforce of 2000 employees, India Yamaha Motor is highly customer-driven and has a
countrywide network of over 400 dealers.
The company pioneered the volume bike segment with the launch of its 100 cc 2-stroke
motorcycle
RX 100. Since then, it has introduced an entire range of 2-stroke and 4-stroke bikes in India.
Presently, its product portfolio includes Ray-Z(113cc), VMax(1679cc), YZF R1(1200cc), FZ 1
(998cc), YZF R15(150cc), FAZER(150cc), FZ-S(150cc), SZ-R(153cc) etc.
We will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating
Kando"
(touching their hearts) - the first time and every time with world class products & services
delivered
by people having "passion for customers".
We are committed to:
Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA
products, focusing on serving our customer where we can build long term relationships by
raising
their lifestyle through performance excellence, proactive design & innovative technology. Our
innovative solutions will always exceed the changing needs of our customers and provide value
added vehicles.
Build the Winning Team with capabilities for success, thriving in a climate for action and
delivering results. Our employees are the most valuable assets and we intend to develop them to
achieve international level of professionalism with progressive career development. As a good
corporate citizen, we will conduct our business ethically and socially in a responsible manner
with
concerns for the environment.
Grow through continuously innovating our business processes for creating value and knowledge
across our customers thereby earning the loyalty of our partners & increasing our stakeholder
value.
Customer #1
We put customers first in everything we do. We take decisions keeping the customer in mind.
Challenging Spirit
We strive for excellence in everything we do and in the quality of goods & services we provide.
We work hard to achieve what we commit & achieve results faster than our competitors and we
never give up.
Team-work
We work cohesively with our colleagues as a multi-cultural team built on trust, respect,
understanding & mutual co-operation. Everyones contribution is equally important for our
success.
Frank & Fair Organization
We are honest, sincere, open minded, fair & transparent in our dealings. We actively listen to
others and participate in healthy & frank discussions to achieve the organizations goals.
Manufacturing Process:
IYMs manufacturing facilities comprises of 2 state-of-the-art Plants at - Faridabad (Haryana) and
Surajpur (Uttar Pradesh). Currently 10 models roll out of the two Yamaha Plants.
The infrastructure at both the plants supports production of motorcycles and its parts for the
domestic as well as oversees market. At the core are the 5-S and TPM activities that fuel our
agile
Manufacturing Processes. We have In-house facility for Machining, Welding processes as well
as
finishing processes of Electroplating and Painting till the assembly line.
The stringent Quality Assurance norms ensure that our motorcycles meet the reputed
International
standards of excellence in every sphere. As an Environmentally sensitive organization we have
the
concept of "Environment-friendly technology" ingrained in our Corporate Philosophy. The
Company boasts of effluent Treatment plant, Rain water - Harvesting mechanism, a motivated
forestation drive. The IS0-14001 certification is on the anvil - early next year. All our endeavors
give us reason to believe that sustainable development for Yamaha will not remain merely an
idea
in pipeline. We believe in taking care of not only Your Motoring Needs but also the needs of
Future Generations to come.
Corporate Philosophy:
For society, for the world.
Yamaha works to realize
Our corporate