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Tatas now eye Daewoo's engine unit
April 02, 2004 17:36 IST
Tata Motors has expressed interest in acquiring engine and transmission units of Daewoo Motors India soon after acquiring commercial vehicles operations of Daewoo Korea.
"We did express an interest in acquiring the facility," Tata Motors Chairman Ratan Tata told visiting journalists in Seoul. The company had yet to hear from bankers, he added.
"If taking over the engine and transmission units makes sense, we will look at it," he said.
The move assumes importance as the Tata Group's acquisition of the truck-making arm of failed Daewoo of Korea was part of its plans to become a global player.
Daewoo's India plant, situated on the outskirts of Delhi, has been shut since year 2000 after the parent went bankrupt.
The Korean firm was one of the first foreign automakers to set up shop in India. DMIL was left out in a global deal in which General Motors Corp of the United States bought the Korean firm.
Utility vehicle maker Mahindra and Mahindra has initiated talks to buy the engine and transmission units of DMIL.
Indian arm of General Motors has begun due diligence process to acquire the car assembly unit of DMIL. Soon after, the due diligence process, General Motors India will sign a definitive agreement with the creditors of DMIL.
Tata Motors, India's largest commercial vehicle maker and the third largest carmaker, sold over 88,000 cars during 2002-03. That translates into a market share of over 14 per cent.
Ratan Tata said his company was not interested in acquiring the whole plant, which also included a car assembly unit, but was only looking at the engine and transmission facility and had communicated the same to the merchant bankers.
Tata also said the company had not expressed interest in acquiring Daewoo's Sungyong facility.
"We have not bid for the facility," he said.
The group acquired Gunsan plant for $102 million and plans to introduce small and medium trucks from its stable in Korea while bringing in heavy trucks from the latter into Indian market.