Suzuki to buy Satya Sheel's 26% stake

Japanese motorcycle major Suzuki Motor Corporation (SMC) is planning to buyout the 26-per cent stake held by investor Satya Sheel, who is is also the managing director of Suzuki Motorcycles India (SMI); the balance is held by SMC.

"SMC will buyout Sheel's 26 per cent in Suzuki Motorcycles India in the future," said Katsumi Takata, joint managing director, SMI. However, he declined to commit on a specific timeframe for the buyout.

SMI started its operations in India last year, with an initial investment of Rs 200 crore. The company has a manufacturing facility at Panipat in Haryana to make one lakh bikes per month.

The capacity will be expanded to 1.8 lakh by September 2006. Besides, the company also plans to enter the scooter segment.

SMI on Tuesday launched its new motorcycle Zeus (100-125 cc) in Mumbai. This is the second product from the company after the 125 cc Heat.

"Our aim is to manufacture five lakh bikes by 2010," said Takata. SMI has sold 10,000 motorcycles in the first four months of the company's operations in the country.

Zeus is available at an introductory price of Rs 46,084.10 (ex-showroom Mumbai), while Heat is priced at Rs 40,623.

Zeus has round crank shaft, an all aluminium engine, a hi-tech spark plug, advanced transmission, decompression valve, and gearshift indicators.