Lohia Auto plans to bid for govt owned Scooters India Limited

Indian two-wheeler company Lohia Auto has reportedly announced that it will participate in the auction of the government-owned public sector company Scooters India Limited. There are rumors that the  government is also planning to sell out the economically unviable company to some private firm, and for this government has decided to give up its 95.38 percent of control to the purchaser. For this the government is planning to get a bill approved by the Parliament in the forthcoming monsoon session. If this bill is approved then Lohia Auto would be the prospective buyer in addition to other companies, Atul Auto from Rajkot and Mahindra & Mahindra who have also expressed their interest in participating in the bidding for Scooters India Limited (SIL). Similar to Lohia, Atul Auto also plans to have the whole share in SIL, whereas Mahindar & Mahindra the company is said to make a decide on it in the next few days.

Lohia Auto is renowned name in the world of Scooters In India the famous brand of scooters from Lohia Auto are Lohia Fame and Lohia Oma both these scooters are known for the powerful performance and effective economy.

Mr. Ayush Lohia, CEO, Lohia Industries is said to have expressed that Lohia Industries will participate in the auction called for the sale of SIL and after all the legal formalities. However, there are still no reports about the final bid amount of bid as SIL is still to be evaluated by the government.

Notably, Scooters India Limited came into existence in 1972 and started production of Vijai Super Scooters In India for the national market and Lambretta scooters for the international market. Later, SIL entered into an alliance with Vikram brand of three-wheelers and in 1997 it finally stopped the production of Scooters In India. However since 2002-03 the sale of company started declining and in the year 2009, company was declared sick by the government and it was sent to Board for Reconstruction of Public Sector Enterprises after it incurred the loss of Rs22.03 crore in the year 2009-10.

Mr. Ayush Lohia also reportedly expressed that the company is speculating on having a dialogue with private equity firms to increase its funds to participate in the bid. It is hoped that if the company succeeds in obtaining the control of SIL then it will expand the network of Lohia Auto in India.