Bajaj acquires majority stake in Maharashtra Scooters
Leading two-wheeler manufacturer in the Indian market Bajaj Auto has confirmed that they have acquired a majority stake in the Maharashtra Scooters Ltd. The company paid close to $10.5 million to get hold of another 27 per cent of Maharashtra Scooters taking their share to more than 50% stake in the company.
They bought the stake from Maharashtra and the price was finally decided after three years of arguments between the two parties. Maharashtra Scooters is involved in manufacturing of scooters from kits supplied by Bajaj Auto who now have a 51% stake in the company. Chairman Rahul Bajaj told Reuters said in a statement on this news event: “The state had wanted the highest possible price, while we had wanted to pay the lowest price … this is a win-win for both.â€
Market experts believe that the company might now opt to give a Volunteer Retirement option to the workers in the company and decide on their next plan of action with this unit later. Bajaj has clarified that they have no plans to close the unit. Instead, they just might convert it into a firm for trading activities in the near future.
Bajaj Auto competes with Hero Honda and TVS in the motorcycle segment and face serious competition from Honda in the scooters market.