How Mahindra and BSA sealed the deal in 48 hours

In the waning months of 2016, David Bennett, the steadfast custodian of the storied BSA Motorcycles brand since its decline in the early 1970s, reached out to Anand Mahindra, the chairman of Indian automotive giant Mahindra & Mahindra. Bennett had a proposition – BSA, a once-legendary name in motorcycling, was up for sale. Reviving the venerable British marque thrilled Mahindra, who possessed the financial clout and the strategic ambition to breathe new life into the brand.

 

However, progress was slow, as is often the case in the labyrinth of corporate negotiations. For over half a year, discussions meandered, and just when the finish line seemed within reach, a rival Indian conglomerate swooped in, threatening to steal the prize. Fate, however, had other plans.

 

Six months later, Bennett was back on the line. The rival was taking too long to seal the deal, and the question was simple: was Mahindra still interested? “With the speed of lightning,” Mahindra recalled at the India launch of the BSA Gold Star 650, which was introduced in the UK in 2021. He contacted his team, and within 48 hours, the deal was done, bringing BSA into the fold of Mahindra’s Classic Legends Pvt Ltd.

 

Anupam Thareja, co-founder of Classic Legends Pvt Ltd, joined the conversation and reflected on his exchange with Bennett. “When I called David, I could tell he was unhappy,” Thareja recalled. “I asked him why, especially since he was being offered more money. David replied, ‘I’m in my mid-eighties, sipping my single malt here in the UK. All I want is to see this bike back on the road.” We showed him our vision, and I believe that helped sway his decision. What followed was Mahindra’s remarkable deftness and speed in closing the deal, which was truly impressive.”

 

The BSA Gold Star 650 is priced from Rs 2.99 lakh onwards (ex-showroom, Delhi) and will compete directly with the Royal Enfield Interceptor 650 and Benelli 502C, among others. Also sold in Europe, Turkey, New Zealand and the Philippines, the Gold Star 650 will enter the US, Australian and Japanese markets soon.

 

Founded in 1861 in Birmingham, England, the Birmingham Small Arms Company (BSA) evolved from a firearms manufacturer to the world’s largest motorcycle producer by the 1950s. During both World Wars, BSA played a crucial role, producing over 1,26,000 motorcycles for military use in World War II alone. According to BSA, its connection to India dates back to the pre-independence era when its motorcycles were favoured by British officials and affluent Indians.

 

Thareja highlighted that India’s 650cc motorcycle segment is split between imported CKD models and locally produced bikes. Currently, the market is around 15,000 to 20,000 units, but it’s expanding rapidly, with the potential to double or even triple soon. He noted that the manufacturing capacity at their Pithampur plant in Madhya Pradesh is flexible. Initially, Classic Legends had the capacity to produce a total of 60,000 motorcycles for its existing brands, Jawa and Yezdi. However, with the introduction of the BSA brand, the company expects to increase it to up to 1,00,000 units.

 

In February this year, the company announced plans to establish a new factory for BSA bikes in the UK in the next fiscal year. The bikes produced at this facility will cater to both the domestic market and exports to Europe, the US, Japan, and other regions. Additionally, Classic Legends recently entered into a joint venture with the Murugappa Group-backed Tube Investments of India Ltd to use the BSA trademark in India. Classic Legends’ executives revealed that the company has invested Rs 350 crore so far in upgrading facilities, conducting R&D, setting up manufacturing plants and launching new products.