Ford lines up $75 mn fresh equity infusion

Ford India on Friday announced that its parent company has confirmed an equity infusion of $75 million (about Rs 340 crore) into the subsidiary.

A Ford India release said the infusion was meant to support further growth in the country. The company will launch its new sedan, Fiesta, next month, which will make its global debut here.

Ford India has already received a part of the announced equity infusion. The company's spokesperson was unavailable for comment on the specific end-use of the funds.

The infusion would be used to "support the aggressive growth strategy we have in place", the statement said.

Ford's local operations have also run up an accumulated loss of Rs 628.90 crore (March 2004). The loss stood at almost three-fourth of the subscribed capital of Rs 850 crore.

The company has so far invested $375 million in its facility and operations here. The company's plant located at Maraimalai Nagar near Chennai has an annual installed capacity of about 50,000 units.

The company has said it has a total manufacturing footprint of about 100,000 units.

Ford India is betting big on the Fiesta to resurrect its volumes in the Indian market. This new mid-size sedan will be launched in mid-November this year, on the back of falling sales of the Ikon.

While the Indian automobile market continues to be dominated by compacts and hatchbacks that have close to 70 per cent market share, the sedan market has of late emerged the fastest growing segment.