US-based off-road vehicle-maker Polaris Industries on Wednesday forayed into the Indian market with plans to set up an assembly facility within the next five years as it looks to clock revenues of up to $400 million from the country by then.
The company, which has started its operations in the country through a wholly-owned subsidiary, is looking to set up a research and development centre and introduce its high-end motorcycles in India in the next 3-5 years.
Polaris India Pvt Ltd had earlier appointed former Yamaha India National Business Head Pankaj Dubey as its managing director.
"Polaris sees significant growth in the next five years and is targeting a $5 billion turnover globally. India is a long-term opportunity for Polaris and we are expecting sales between $100 million and $400 million from here by then," Polaris Industries president and chief operating officer Bennett J Morgan told PTI.
In achieving the global target of the company, India will play a very critical role along with Brazil and China, he said.
The company today introduced its off-road, all-terrain vehicles, priced between Rs 2,40,000 and Rs 20 lakh or Rs 2 million (Delhi), in India.
The products will be imported as completely built units from its facilities in the US and Mexico.
Asked if the firm will set up any assembly unit in India, Morgan said, "We are now paying very heavy duty to the tune of 116 per cent. Once volume increases, we will look for setting up manufacturing facilities."
The company may also explore possibilities to tie up with a local partner to produce the products under a contract manufacturing agreement, he added.
Asked about the size of investment that the company may put in during the next five years, he said it will be 'significant', but declined
to share any numbers.
Polaris Industries vice-president (global new market development) Mike Dougherty said the company will develop future products keeping in mind Indian conditions.
"Products in India will be different from those in the US. Our future product development will also consider specifically the Indian market," he added.
Dougherty said the company is considering the establishment of a design centre in India in the next 3-5 years to strengthen its product portfolio for emerging markets.
Polaris India has already started a technical centre in association with engineering major L&T and has tied up with TCS for IT services, he added.
Asked about the company's two-wheeler business, Dougherty said, "After establishing our ATR business here, we will introduce our premium 'Victory' motorcycles in India in the next five years."
He, however, declined to share details, saying it will be gradually decided as the Polaris brand gets established in the market.
On the motorcycle business, Morgan said, "Currently, our bikes are produced in the US and Mexico. For future growth, we want to have manufacturing sites in Europe and Asia, where India will play a very important role."
Talking about the Indian operations, Dubey said, "We have appointed nine dealerships across the country and the tenth one will come up very shortly. Sales will start from September."
The company has already received its first order from the defence forces, which will be the major consumer for its off-road vehicles like snowmobiles, he added.
The $1.99-billion global major sells its products in about 130 countries across the world. It is expecting a jump of 25 per cent in sales this year.
The company, which sold a total of about 200,000 units across all categories last year, has manufacturing sites in the US and Mexico, besides an assembly unit in Brazil.
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US-based off-road vehicle-maker Polaris Industries on Wednesday forayed into the Indian market with plans to set up an assembly facility within the next five years as it looks to clock revenues of up to $400 million from the country by then.