We are very POSITIVE on India: Piaggio chairman

The economic squeeze may be getting tighter in the euro zone -- and more so in Italy apart from Greece and Spain -- with every passing day. But that has in no way deterred group Chairman and CEO of Piaggio Roberto Colaninno or affected his investment plans for India.

Replying to a query from Rediff.com, Colaninno said that while 50 per cent of the company's total investment outlay is meant for Italy, the remaining 50 per cent will be invested in markets across Asia that includes India and China.

Reportage: Prasanna D Zore

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He, however, did not clarify the size of Piaggio's total investment outlay and more particularly the quantum of that share the Italian company will invest in India.

"During our internal discussions we have delved on what kind of strategy we should have (for India)," Colaninno said without divulging any more details.

He said, "We are very positive about our investments in India."

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He further added that the company has already initiated steps to double the capacity at Piaggio, Baramati, from 150,000 units per year to 300,000 units per year by mid-2013.

"I am very optimistic about our growth prospects in India," he said, emphasising the company's plans to bring in at least 20 million euros this year as investments in the Piaggio's Baramati plant that will manufacture the Vespa LX 125.

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According to a press release issued by the company, the Indian subsidiary of Piaggio has already invested Rs 10 billion (Rs 1,000 crore) in India as of December 2011.

"The investment in Baramati is part of our strategic plan, which sees India as a significant destination in our growth trajectory," said the press release issued by the company.