Automaker was interested in acquiring a majority stake in Scooters India.
Irked by delays in the divestment of sick state-run company Scooters India, Rajkot-based three- wheeler maker Atul Auto says if no headway is made in the next month, it will start to look at other options, including an entry into the four-wheeler commercial vehicle segment.
"It is too late... I cannot wait forever. No development is happening from the government side. From next month onward, I have to look for other options, including entering the four-wheeler space. I am looking at investing around Rs 200 crore on this," said Atul Auto Director Vijay Kedia.
The BSE-listed automaker was interested in acquiring a majority stake in Scooters India, an ailing public sector undertaking in which the government was considering divestment.
In May, the government had announced plans to divest its entire 95.38 per cent stake in the sick firm, which primarily manufactures three-wheelers and has been in the red since FY'03.
"As of now, we are keen to acquire Scooters India, as we both make similar products in terms of front-engine three-wheelers. But the delay is forcing us to look for other options," he said.
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The three-wheeler major is contemplating the establishment of a four-wheeler facility in Gujarat, with an investment of around Rs 200 crore.
Initially, the company plans to manufacture 10,000 LCVs and later double the capacity.
"It will take about 16-18 months to set up the plant. We are moving slowly on this project," he said. The company is looking for a partner whose technology will help it enter this segment.
"We are keen to collaborate with a company whose technology will help us manufacture LCVs," Kedia said, adding that the company has not finalised anything yet.