Financial Daily from THE HINDU group of publications
Friday, Jan 25, 2002
Corporate - New Projects
Suzuki seeks 100 pc arm for 2/3-wheelers
NEW DELHI, Jan. 24
WITHIN three months of exiting from a 15-year association with the TVS group, Japanese auto major Suzuki Motor Corporation has now sought the approval of the Foreign Investment Promotion Board (FIPB) to set up a manufacturing facility in India for two and three-wheelers.
The company submitted a proposal to the FIPB on Monday for setting up a wholly owned subsidiary.
In its application to the FIPB, the company has stated that the proposed wholly-owned subsidiary will undertake manufacturing, assembling, selling, marketing, repairing and servicing powered two and three-wheelers and allied products including motor cycles, scooters, mopeds and their spare parts, components and sub-assemblies.
Suzuki exited its two-wheeler joint venture in India with TVS Motor Company Ltd last year by selling its entire 26 per cent holding to the Chennai-based TVS group.
The TVS group Chairman and Managing Director, Mr Venu Srinivasan, told Business Line that it is willing to give a `No Objection Certificate' (NOC) to the Suzuki proposal to set up the subsidiary.
"One of the conditions of the exit was that we will give them a NOC and allow them to do the ground work for setting up the subsidiary as and when they choose. But they cannot launch any product until 2004," Mr Srinivasan said.
The FIPB is likely to take up the proposal for consideration at its next meeting scheduled for next week.
Mr Srinivasan said TVS has no objection to Suzuki finding a manufacturing site and even starting pilot production, "but it is binding on them not to launch a product (till 2004)."
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