Government considering sale of Scooters India Limited?

Scooters India, the company that made iconic products under the Lambretta / Vijai Super names may be sold off. According to the report by ET Auto, officials from the heavy industries ministry (the administrative ministry for the company), and the disinvestment department of the finance ministry are likely to meet this week to zero in on a plan for the company's future.

Talks of the selling the state-run three-wheeler manufacturer have come to light now, after a similar plan to divest the central government's majority (93.74%) stake in the company was shelved in 2011. Back then, the plan was dissolved as it faced strong opposition. Instead of being sold off in 2011, the company went on to receive a financial revival package of Rs. 202 Crore. In September 2015, it ceased to be a sick company, as its net worth turned positive, but it still has to be seen if the profitability can be sustained. An official at Scooters India said the company is making all possible efforts to ensure profitability and is considering various options, including using its land assets.

Incorporated in 1972, the Lucknow-based company has seen a decline from its golden years of the mid-1970's to the 1980's. In 1975, company started its commercial production of scooters under the brand name of Vijai Super for the domestic market and Lambretta for overseas markets. The company’s plant owes its origin to M/s. Innocenti of Italy from which it bought over the plant, machinery, design and copyrights etc. The company also holds the world right of the trade names Lambretta and Lambro. 

In 1997, the company stopped making scooters, with the Vikram range of three-wheelers becoming the focus. The company currently manufactures the Vikram 450D, 410G, 600G, 750D and Vikram EV.

*Image for representation only.