Search the Internet          Tips  Sites: Finance, Investment

Piaggio hikes stake in Indian 3-wheeler firm

Italian two-wheeler maker, Piaggio & C SpA has bought the remaining 49 per cent stake in its Indian three-wheeler unit Piaggio Greaves Vehicles Ltd for Rs 315 million ($6.7 million), an economic daily said on Monday.

Piaggio already controlled 51 per cent in the venture with energy equipment maker Greaves Ltd holding 49 per cent, the Business Standard said.

The Italian company, which itself owned 36 per cent stake in the firm while another group company held 15 per cent, sees India as an attractive market and hopes to make it an export hub, announced plans last year to double its production capacity from 25,000 to 50,000 vehicles, the paper said.

The increase in the Italian company's stake in the Piggio Greaves follows its exit some years ago from LML Ltd, India's second largest scooter maker after a bitter dispute.

Following its exit from LML, Piaggio bid for state-owned Scooters India Ltd which the government was selling.

But the sale failed to make progress since Piaggio emerged as the sole bidder forcing the government to consider a fresh bid in the hope of generating greater interest in the sale.

Tell us what you think of this report