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Atul Auto Likely To Acquire Scooters India
Presently, the Central Govt, owns 95% stake in Scooters India and the Ministry of Heavy Industries is watching out to sell a major section to a private player who is interested in the firm's three wheeler business and Atul Auto fits the bill.
According to sources, Atul Auto would soon conduct a due diligence and the company is looking to invest in Scooters India. The quantum of stake and investments are still to be worked out. He also added that the company is likely to have a JV with the Govt and talks are on. Reports say that Atul Auto has proposed a 51:49 JV though the Govt and is interested in offloading a higher stake to the private sector.
Atul Auto could be the perfect company to buy the stakes of Scooters India because the two companies make similar products with respect to front engine three wheelers whereas, firms like Bajaj and Piaggio are focusing on back engine options. If chance favours, Atul Auto can double its sales of three wheelers when it ties up with Scooters India.
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