Quantum of investment by South Korean firm yet to be decided.
Kumho Express, a wholly-owned unit of South Korea’s Kumho Asiana Group, has plans to foray into India’s road passenger transport business. The company has already held talks with the Maharashtra State Road Transport Corporation (MSRTC) for this.
Kumho Asiana Group is a South Korean conglomerate with subsidiaries in the automotive, industry, leisure, logistic, chemical and airline fields. Kumho Express, which has a fleet of around 1,400 buses, has operations in South Korea, China and Vietnam.
Speaking to Business Standard, a senior MSRTC official said, “Talks are at a preliminary stage and the quantum of investment by Kumho is yet to be decided.”
MSRTC, which turned around its fortune by using various innovative methods such as introduction of air condition buses on busiest routes like Mumbai-Pune, Nashik-Mumbai and Thane-Pune, had posted profit of Rs 160 crore in financial year 2007-08.
“Our air condition bus service. which we run under the brand name Shiveneri, is highly popular as we maintain strict punctuality and in the case of any breakdowns we immediately make alternative arrangements from our vast fleet, which is not the case with private operators. Our safety record is also quite appreciable compared to private operators,” the official said.
He said the board of MSRTC has given an in-principal approval to the joint venture with Kumho. “Now, we are waiting for clearance from the state government, after which we will decide who will hold how much in the joint venture, which will run the air condition bus operations in the state.,” the official added.
“Right now we are carrying out a feasibility study. Once the list of destinations is finalised then only we can decide on the number of buses required to run the service, what will be the expenditure required for providing passengers lounges and other infrastructure etc,” according to the official, who sought anonymity.
