INDIA BUSINESS WORLD - JANUARY 2006
THE MONTH THAT WAS

SANYANG JOINS KINETIC MOTOR BOARD AS MINORITY PARTNER

Almost nine years after snapping ties with Honda, Kinetic Motor Co has decided to induct Taiwan-based $1-billion auto giant Sanyang Industry Co (SYM) as a minority partner for technical collaboration. Management control will be retained by the Kinetic group.

The board of directors of Kinetic Motor today recommended a preferential allotment of equity shares to SYM. The company will issue 20,65,000 shares priced at Rs 66 each worth Rs 13.63 crore as per the Sebi guidelines. This will amount to SYM holding an 11.1% stake.

Kinetic Motor's agreement entails a technical collaboration with SYM for technology and manufacturing of latter's models in the country. SYM has R&D capabilities to produce two-wheelers and has developed models ranging from 50 cc to 500 cc, including electric scooters and fuel injection-technology vehicles.
Founded in Taipei in 1954, SYM is headquartered in Hsin Chu Industrial Park in Taiwan . The company's three major production bases are in Taiwan , China and Vietnam , and its products are sold under its brandname SYM. The annual sales revenue of the company exceeds $1 billion. SYM produces more than 6,00,000 units of motorcycles and 20,000 automobiles per annum.

“The equity participation by SYM will enable us to expand our business in India as well as other countries. We welcome the investment and view it as a reinforcement of the strengths we have built over a period of time at Kinetic group. The investment by SYM is in line with our commitment to deliver long-term shareholder value. Kinetic has introduced superior global technology to the Indian market over the last two decades through its global tieups and has always been appreciated by the people in India ,” said Kinetic Motor Co director Sulajja Firodia Motwani.