Mahindra Or Atul Auto, Who Gets Scooter India?

By By: Vicky.in

Published: Tuesday, August 24, 2010, 15:50 [IST]

Mahindra likes to continue the stream of acquisition activities because it is now eying on acquiring the majority of stakes of the state-run Scooters India Limited. Earlier, a few days back, it was evident that Atul Auto was focusing on a majority of stakes in the same company.

Scooters India Limited, is literally the first company to start the production of scooters in the 1970s with its 'Lambretta' scooters under the brands Vijai Super and Lambretta, discontinued two-wheeler production in 1997. But now, this company has reported a loss of Rs. 220 million in the fiscal year ended in March 2010. The govt is ready to offer upto 74% stake in Scooters India.

Mahindra, which is ambitious becoming a complete global vehicle maker, is obviously interested in Scooters India. Atul Auto on the other hand, is already making similar products like Scooters India, and will be interested in investing in the Scooter India for its technology and expand the capacity.

The Indian three wheeler market has witnessed a significant rise of 18% during the Jan - Apr of the current fiscal year with sales of 150,526 units so far. A total of about 60 state-owned firms have been identified in which the government will be selling stake.

Article Published On: Tuesday, August 24, 2010, 15:25 [IST]

Read more on: #auto news #mahindra #scooter #two wheeler

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