According to Bajaj the deal took an additional investment of 20 million Euros which is about 120 crore INR. Bajaj acquired 14.9 percent stake in KTM in 2007 at an investment of 300 crore, increasing it to 25 percent a year later. Since then Bajaj has been very keenly interested in this Austrian bike manufacturers business. A formal agreement was also signed by both the companies under which they will jointly manufacture 125cc bikes, which will be built at Bajajs Chakan plant in Pune, Maharashtra. These bikes will be exported to the European market and sold under the KTM brand.