Ideal Jawa Put Up For Sale By Bifr

The decision to sell the ailing company comes after the existing promoters failed to present a viable scheme to rehabilitate the company.

The Board has directed the Industrial Credit and Investment Corporation of India (ICICI), the operating agency for the sick company, to advertise for a management change in the company. The potential buyers would be given six weeks by the ICICI to evaluate the assets of the company before placing their bids.

Despite repeated efforts by Business Standard, T R Irani, the managing director of the company, was not available for comment.

Ideal Jawa had earlier presented a Rs 5-crore revival package which was worked out by the promoters. However, it was not reviewed by the ICICI, and hence, its viability could not be guaged.

 

In an attempt to recapture its earlier market status, Jawa had also announced the relaunching its 175cc 2-stroke motorcycle in four months time. The model, which had been earlier launched in 1990 but later withdrawn from the market due to technical snags, was part of an overall strategy to revive the company, sources said.

The company had also entered into a strategic alliance for marketing and distribution of its vehicles with a Mysore-based company named Black Gold. The company was also reportedly scouting for foreign partners for possible technical and technological alliances. Sources close to the company had said negotiations had been initiated and technical collaborations could be expected in the near future.