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Escorts exits 4 JVs, to acquire majority in US venture
New Delhi, Sept 28: In what appears to be an attempt at reducing cross holdings and strengthening core areas, Escorts Limited has sold off its interest in several group companies including Escorts JCB and Goetze India while proposing to scale up investments in farm equipment ventures in the US and Europe.
New Delhi, Sept 28: In what appears to be an attempt at reducing cross holdings and strengthening core areas, Escorts Limited has sold off its interest in several group companies including Escorts JCB and Goetze India while proposing to scale up investments in farm equipment ventures in the US and Europe.
The company, which is in the midst of a controversy for proposing to sell a part of its stake in Escorts Heart Institute and Research Centre to a private investment fund, has realised a little over Rs 250 crore from the equity divestment in four group companies.
Besides, it proposes to gain control of two separate joint ventures under Escorts Agri Machinery Inc, to strengthen presence in farm equipments in the United States and Europe with three million US dollar investment.
When contacted, an Escorts spokesperson confirmed that there was a proposal to scale up investments in the two joint ventures of Escorts Agri Machinery. He also replied in the affirmative when asked if the company had exited several equity investments over the last few months.
Escorts held 60 per cent stake in Escorts Claas, 40 per cent in Escorts JCB and 50 per cent equity investment in Escorts Mahle besides some preferential shares and another 27.21 per cent in Goetze India.
The company has liquidated all these investments to realise a total of Rs 251.41 crore, the spokesperson said.
"Escorts wants to scale up its presence in the United States and Europe. We have decided to increase our investments in the US JV Long Agribusiness Inc and Polish JV Pol-mot Escorts Spolka to get aggressive in these markets," he said.
Escorts Agri Machinery Inc is a wholly-owned subsidiary of Escorts Ltd with a capital base of 9.69 million dollars. It had invested nine million dollars in Long Agribusiness LLC to form a joint venture in USA with 49 per cent stake.
Also, it has invested 0.5 million dollars in pol-Mot Escorts Spolka to acquire another 49 per cent in this JV.
Escorts now proposes to invest three million dollars in its subsidiary Escorts Agri Machinery to scale up its presence in these two markets, which offer high growth potential for farm equipment. Bureau Report
Besides, it proposes to gain control of two separate joint ventures under Escorts Agri Machinery Inc, to strengthen presence in farm equipments in the United States and Europe with three million US dollar investment.
When contacted, an Escorts spokesperson confirmed that there was a proposal to scale up investments in the two joint ventures of Escorts Agri Machinery. He also replied in the affirmative when asked if the company had exited several equity investments over the last few months.
Escorts held 60 per cent stake in Escorts Claas, 40 per cent in Escorts JCB and 50 per cent equity investment in Escorts Mahle besides some preferential shares and another 27.21 per cent in Goetze India.
The company has liquidated all these investments to realise a total of Rs 251.41 crore, the spokesperson said.
"Escorts wants to scale up its presence in the United States and Europe. We have decided to increase our investments in the US JV Long Agribusiness Inc and Polish JV Pol-mot Escorts Spolka to get aggressive in these markets," he said.
Escorts Agri Machinery Inc is a wholly-owned subsidiary of Escorts Ltd with a capital base of 9.69 million dollars. It had invested nine million dollars in Long Agribusiness LLC to form a joint venture in USA with 49 per cent stake.
Also, it has invested 0.5 million dollars in pol-Mot Escorts Spolka to acquire another 49 per cent in this JV.
Escorts now proposes to invest three million dollars in its subsidiary Escorts Agri Machinery to scale up its presence in these two markets, which offer high growth potential for farm equipment. Bureau Report