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| Atul Auto eyes controlling stake in Scooters India |
| Vimukt Dave / Mumbai/ Rajkot Aug 20, 2010, 00:40 IST |
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After domestic auto major Mahindra and Mahindra (M&M), Rajkot-based Atul Auto Limited has now shown is interest in buying controlling stake in the sick public sector enterprise Scooters India Limited. For this, top company officials recently met Vilasrao Deshmukh, Minister of Heavy Industries & Public Enterprises, Government of India.
“We have met the minister and other government officials for Scooters India. Having heard that the government wants to revive Scooters India, Atul has shown interest to buy controlling stake in it,” said Vijay Kedia, director of Atul Auto which has proposed to buy 51 per cent stake in Scooters India.
“It was a preliminary meeting with government officials and we are hoping for the best. If we succeed in this deal, Atul will modernise the Scooters India plant. For this, we will evaluate the company and then infuse fresh funds in the company,” said Kedia.
Incorporated in 1972, Scooters India Limited is an integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers.
The company started its commercial production of scooters in 1975 under the brand name of ‘Vijai Super’ for domestic market and ‘Lambretta’ for overseas market.
However, in 1997 the company discontinued its two-wheeler production and concentrated only on manufacturing and marketing of three wheelers under the brand name of ‘Vikram’.
It has been learnt that the government is planning to divest about 74 per cent stake in Scooters India Limited. Atul Auto Ltd. has its manufacturing facility at Rajkot with a total installed capacity of 30,000 vehicles annually.
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