Suzuki plans to buyout stake in Indian partner

Japanese auto major Suzuki Motor Corporation (SMC) is mulling to buyout the stake of its Indian partner in two wheeler-venture Suzuki Motorcycle India (SMIPL).

The Japanese firm is looking to make the Indian subsidiary, a wholly-owned venture, which had started off with it holding 74 per cent stake and the rest 26 per cent by the family of company Managing Director, Satya Sheel.

"Internally, there is a discussion within Suzuki for such a move," SMIPL Joint Managing Director Katsumi Takata told reporters here, when asked if SMC planned to buyout the Indian partner.

Industry sources, however, said Sheel's stake in the company has already come down significantly. This could not be ascertained as both SMIPL and Sheel were tight-lipped.

"No comments," Takata said.

When contacted, Sheel, who is in China now, said he was not in a "position" to comment on the matter immediately.

SMIPL has so far invested Rs 400 crore and will make an additional investment of Rs 150 crore by 2010 for expanding its production capacity and also for new models it planned to bring to the market

Suzuki, which re-entered India in 2006 with the launch of two bikes after breaking off from a join venture with TVS Motor in 2000, is looking to launch at least two models every year.