Piaggio (Italy) opts for 100 per cent arm in India
piaggio.com
(Wednesday, August 4, 1999)
Baiju Kalesh in Pune
Piaggio SPA, the $1.3-billion global two- and three-wheeler major, has decided to set up a 100 per cent subsidiary in India.
"We are evaluating various options and a 100 per cent subsidiary is high on the agenda. All our other future plans have been put on hold for now," sources in Piaggio said.
The company is planning to launch its entire product range in India. However, it will all depend on various conditions, sources indicated. It has not been able to launch its entire two-wheeler range in India as the matter with LML is sub judice. The matter is also pending with the International Court of Arbitration (ICC).
When asked about the Piaggio plans for India, Alessandro Barberis, chairman, Piaggio, said: "I cannot say anything on the issue as the matter of the joint venture with LML is sub judice." He, however, said that Piaggio is bullish on the scooter market in India.
While its JV with LML is embroiled in a legal tussle, Piaggio's joint venture with Greaves is limited to manufacturing three-wheelers and its extensions.
However, with LML informing the authorities about the termination of its joint venture agreement, the Italian major has decided to take the 100 per cent subsidiary route, sources added.
Meanwhile, LML has decided to launch a motorcycle in September by receiving technology from South Korea-based Daemlin Motor Company. |
