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October 18, 2005 12:49 IST
Bajaj Auto [Get Quote], the country's second-largest two-wheeler manufacturer, has firmed up plans to enter Pakistan through a joint venture, chairman Rahul Bajaj said on Monday.
The company is awaiting approval from the Pakistan government to enter the neighbouring market, he said.
"We are waiting for the green signal from Pakistan Prime Minister Shaukat Aziz, while all the formalities (to enter Pakistan) have been completed," Bajaj said.
He said the joint venture with Pakistan's leading business family, Saigals, could be in the ratio of 51:49 - with Bajaj Auto holding the majority stake.
"We intend to have either a manufacturing or an assembly base in Pakistan. However, the Pakistan government seems more interested in giving us permission for a technology transfer arrangement," Bajaj said.
If the company gets approval for technology transfer agreement, Bajaj Auto will go ahead with the arrangement, he said.
If Bajaj Auto's proposal comes through, the company will be the first from India to set up a production base in Pakistan. Pakistan's Saigal family, which left India during Partition, has interests in diversified sectors such as banking and automobiles.
Currently, the Saigal family has a production tie-up with the Chinese company Qingqi. The Pakistan venture will provide Bajaj Auto access to a market where there is no indigenous two-wheeler brand.
Bajaj Auto has reported a 61 per cent increase in its July-September net profit to Rs 291 crore. The company's net sales grew nearly 30 per cent to Rs 1866 crore during the quarter.
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