Utility vehicles maker Mahindra & Mahindra and three-wheeler maker Atul Auto Ltd are separately interested in acquiring a majority stake in state-run Scooters India Ltd (SIL), two sources in Mahindra and a senior official in Atul Auto said on Monday.
Recent reports citing unnamed government sources have claimed that the government plans to offer up to 74 per cent stake in SIL, in which it owns about 95 per cent stake. The company reported a R22 crore loss in the fiscal year ending March 2010, according to data on the BSE.
The company, which sold scooters under the Vijai and Lambretta brands, stopped making two-wheelers in 1997.
Mahindra, which has signed a preliminary agreement for acquiring Korean automaker Ssangyong Motor, is looking at SIL to add to its three-wheeler portfolio, the company sources said. However, a company spokeswoman said the firm would not comment on speculation. Mahindra, which has about 11 per cent market share in the three-wheeler segment, last year launched Gio, an upgraded version of its three-wheeler products with the intention of making inroads into the semi-urban market.
Atul Auto, whose products are similar to those from Scooters India, intends to invest in the latter's technology and expand capacity, Vijay Kedia, director at Atul Auto, said.
"Our plan is to revive the company with our expertise as we have similar products," Kedia said.
SIL officials were not available for comments.