The little known auto company, Atul Auto is looking widen its business horizons. The first aim they have kept before themselves is to buy the Scooters India Ltd. Atul Auto is the Rajkot-based three wheeler maker. The company is planning to buy Scooters India Ltd. after the government agreed to sale its stakes in the Scooters India Ltd. since it has been suffering losses.
Scooters India Ltd. is already a listed company on the Stock Exchange. However, it faced a loss of more than Rs. 20 crores in the last financial year. Yet, the company is very enthusiastic about buying the government owned company. The reason the company sources say that Scooters India Ltd. and Atul Auto make a great business combination.
Now why there is a great business combination between Atul Auto and Scooters India Ltd. is because, both the companies manufacture engines with front engine only. This makes them complementary to each other and makes Atul Auto one of the best bets to overtake the SIL.
The government owns 95.38 per cent stake in the company and they are planning to sell it off for good. However, there are yet no fixed dates announced as to when the exact selling procedure would begin. But Atul Auto has already declared their intention of buying the company.
However, there is can be competition for Atul Auto in the form of Mahindra & Mahindra. M & M are one of the leading auto houses in the country. The company said that, they would also study the opportunity and give it a thought if the takeover could be profitable in any way.
Mahindra & Mahindra is known for their products like the tractors and the sports vehicles mainly. However, cars and buses are also their forte. They have also ventured into the two-wheeler segment in the recent past.