FORD TO INFUSE Rs890 CR, RAISE STAKE IN CAR JV
Article Abstract:
Ford Motor Company plans to invest Rs890 crore in its Indian joint venture, Mahindra Ford. It plans to invest Rs140 crore in the equity and raise Rs750 crore through debt by November 1999. The fresh capital will fund the new car project slated to be commissioned by November 1999. The equity pattern of Mahindra Ford is to change with Ford Motor Company raising its stake from 50 percent to 92.18 percent. Mahindra & Mahindra, the partner of Ford Motor Company, is to cap its investment in the joint venture at Rs135 crore. Mahindra Ford has an outlay of Rs1,500-1,700 crore. The share of the investment of Ford Motor Company now is Rs610 crore, of around 78 percent of the equity. Ford Motor Company plans to invest Rs140 crore more to make its total investment in the equity Rs750 crore. The balance Rs750 crore will be raised through debts. Ford Motor Company plans to raise the needed money from Indian financial institutions and national banks. Mahindra Ford makes cars. (tsm)
Comment:
Ford Motor Company plans to invest Rs890 crore in its Indian joint venture, Mahindra Ford.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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GLOBAL GIANT FORD TO UP ONLY 80% STAKE IN INDIAN JV
Article Abstract:
Ford Motor Company (FMC) of USA plans to raise its stake in Mahindra Ford (MF), its Indian joint venture, only up to 80 percent. FMC is an automobile company. It has the approval of the Foreign Investment Promotion Board to raise its stake in MF to 92.18 percent. The move of FMC follows the decision of Mahindra & Mahindra (M&M) to restrict its investment in MF to Rs135 crore. M&M is the Indian partner of FMC in MF. FMC proposes to raise its stake in many phases spread over 2 months. It plans to invest an Rs800 crore more in MF. MF proposes to introduce its new car, code-named C195, by November 1999. (ag)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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FORD GETS FIPB NOD TO UP JV STAKE..
Article Abstract:
Ford of the US has got permission from the Foreign Investment Promotion Board to increase its stake in Mahindra-Ford, a joint venture with Mahindra & Mahindra (M&M), to 95 percent from 50 percent. Ford will increase its holding by investing Rs1,700 crore while M&M will limit its investment to Rs135 crore. Ford's additional investment will be used to build its plant at Chennai. This plant will produce the Ford Fiesta model and is expected to have a production capacity of 1 lakh units. (khr)
Comment:
Gets permission from Foreign Investment Promotion Board to increase its stake in Mahindra-Ford from 50% to 95%
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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