Tuesday, July 31, 2007

Mukand may offer equity stake to Bosch India

The Rahul Bajaj-controlled speciality steel company Mukand is considering making an equity offer to German auto component maker Bosch India that will increase its supplier association with the foreign company, as global auto majors rush to meet India’s demand for small cars.

While the offer of an equity stake in Mukand is still under informal discussion, promoters of the Mumbai-based company are also considering an alternate option that includes hiving off a division into a joint venture company with Bosch India.Mukand chairman Niraj Bajaj however said that there were no such plans.

Sources said that the option to form a joint venture would be by spinning off the bright bar division, which makes the special steel for fuel injection systems.

Read more in The Economic Times article.

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