INDIA BUSINESS WORLD - March 1st - March 15th - 2008
MITSUI PICKS UP 30% STAKE IN YAMAHA INDIA FOR RS 168 CR
MITSUI Corporation is picking 30% stake in Japanese two-wheeler maker Yamaha Motor's India business for Rs 168 crore. Mitsui Corporation had last year acquired 3% stake in the parent company Yamaha Motors of Japan.
Yamaha Motor India's (YMI) manufacturing and business operations are being transferred to a newly-formed company called India Yamaha Motors from April 2008. The total capital of YMI is Rs 160 crore while the capital of IYM will be Rs 560 crore. While Mitsui is investing Rs 168 crore, the remaining Rs 232 crore will be pumped in by Yamaha itself. The losses of YMI are being written off and will be absorbed by the Japanese parent.
The fresh investment is expected to go into launching new products in the domestic market with contemporary Yamaha technology as well as starting new marketing initiatives to turn around its fortunes. YMI has been struggling to
retain its market share which has eroded and gone down to under 4% in the 7.5-million Indian two-wheeler market.
The company spokesperson said, "After the entire restructuring, we are targeting a total sales turnover of Rs 1,000 crore during the ninemonth period starting April to December 2008. We will be utilising the existing two manufacturing facilities of the company and the additional investment (total capital of Rs 560 crore ) will be utilised from April onwards. Based on this, YMI will promptly begin the closing of its books and corporate liquidation immediately."
YMI, which currently employs around 2,000 employees in its India operations will continue to operate in the same manner. The company plans to launch an array of models including two new 150 cc bikes in the domestic market. It also plans to foray into the scooter market and launch its range of automatic scooters. The company has already launched its two popular super bikes — 1000 cc YZF-R1 and 1670 cc MT-01 — last year.
|
