DC Designs seeks ally

DC Designs, the Mumbai-based ace car designer Dilip Chhabria's company, is scouting around for a strategic investor to fund its expansion plan.

Consultancy major PricewaterhouseCoopers has been given the mandate and it has already approached auto giants such as Tata Motors and Mahindra and Mahindra for this.

According to industry sources, neither Tata Motors nor M&M, has evinced an interest in acquiring a stake but talks with four other suitors have reached the final round.

Sources also confirmed that the investment will come in the form of a fresh issue of capital which will see a paring of stake of existing share holders, Chhabria, Vinay Maloo (promoter of Himachal Futuristic Communications) and Jardine Fleming.

Chhabria said the company was looking for an investor but declined to name the final suitors.

The Rs 8 crore DC Designs had planned a public issue in 2001 to raise funds for its expansion.

Though it boasts of designing and prototyping capabilities, DC Designs revenues come mainly from customising cars and bikes. Industry observers say that prospective buyers are looking at the company's potential to leverage India's inherent strength in the information technology sector and DC's design capabilities to develop running prototypes.

DC Design has around 450 employees spread over two facilities in the country. Its bus-building facility in Silvassa, which was to build luxury coaches for companies such as Ashok Leyland, did not meet with much success.

DC has worked on projects such as the prototyping of an Aston Martin car for James Bond flick 'Die Another Day' and designing a car for the Bollywood movie Tarzan.