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| Atul Auto looking to acquire majority stake in Scooters India |
| Press Trust of India / Mumbai Sep 05, 2010, 14:28 IST |
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Three-wheeler maker, Atul Auto, is interested in acquiring a "not-less-than 51 per cent stake" in Scooters India, a public sector undertaking in which the Government is mulling a divestment.
"We are interested in acquiring a majority stake in Scooters India. We will not go ahead with the deal if the Government sells us less than 51 per cent stake," Atul Auto's Director, Vijay Kedia, told PTI here.
Heavy Industries and Public Enterprises Minister, Vilasrao Deshmukh, had earlier said the Government was scouting for a joint venture partner to revive Scooters India.
"We are going for a joint venture (for Scooters India) and there are many companies which have shown an interest," Deshmukh had said.
Apart from Atul Auto, there is speculation that other majors such Bajaj Auto, M&M and Piaggio are also eyeing a stake acquisition in the Lucknow-based company.
Atul Auto and Scooters India make similar products in terms of front-engine three-wheelers, whereas Bajaj and Piaggio are focusing on rear-engine options.
"We intend to invest in Scooters India's technology and expand capacity. We have similar products," Kedia said, adding "we want to acquire a liability-free company."
Scooters India used to make the Lambretta model until it was forced to stop production on piling losses. The company then confined itself to the three-wheeler space.
Scooters India is a listed company with the Government owning over 95 per cent stake. It posted a Rs 22-crore loss in FY 10.
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