First, it was Mahindra and Atul Auto, which were known to have had interest in Scooters India stake. Now, its Tata and Piaggio, who are likely to join the stake buying race.
According to top officials of the Heavy Industries Ministry, Piaggio and Tata Motors feel like purchasing the 74 percent of stake in the Lucknow-based three wheeler company Scooters India, which once produced the Lamby scooters in India. The officials further say that the four companies, Mahindra, Atul Auto, Tata and Piaggio, have already given indication that the formal Expression of Interest (EoI) can only be made after the Cabinet approval. Many companies see huge potential in SIL because they expect a strong growth from the north Indian and Uttar Pradesh markets.
The company which will buy the majority stakes of Scooters India, will be allowed to use the 150 acre land and equipment. The turnaround plan for the PSU has also made clear that the old debts of the sick company, amounting to about Rs 100 crore, while any fresh investment will have to be made by the new private partner.
The ministry officials, have stated that nearly 800 out of the 1200 strong work force will retire in the next two years, which will be a welcome change for Scooter India's sales. In 1996, the union tried to sell the stakes, but then, labor was a big issue for the private players.
The Ministry hopes that the cabinet approval and the sales process will surely take place by the end of this month.
Source: living.oneindia.in
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