Sonalika has joined the race to pick a stake in the sick public sector enterprise Scooters India (SIL). The company is in talks with the department of heavy industry which is scouting for a strategic partner for Scooters India following the recommendation of the Board for Reconstruction of Public Sector Enterprises (BRPSE).
Sonalika Group chairman L D Mittal confirmed that he is negotiating with the government for purchasing a stake. “It is still at an initial stage, so I can't say how much we will pick up. But yes we are examining the options,” Mittal said.
Confirming the government’s plan to look for a strategic partner for Scooters India, minister of state for heavy industries, Arun S Yadav told FE, “We are considering different models which include looking for a strategic partner for Scooters India.” He declined to divulge details. Sale of majority stake or complete divestment are among the options being considered for SIL, a source told FE. Mahindra & Mahindra (M&M) is among other companies which have shown interest in Scooters India, the source added.
Source: Indian Express