Yamaha to continue partnership with Escorts

NEW DELHI, DEC. 3. Japanese two-wheeler giant Yamaha Motor Company has said it has no plans of buying out its Indian partner, Escorts, in the joint venture Yamaha Motors Escorts (YEML), saying it would continue with the partnership.``There is no intention to have 100 per cent (ownership) of this joint venture,'' Yamaha Motor Co President Mr. T..Hasegawa told reporters at the launch of YEML's new motorcycle model.``We respect the past contribution of Escorts. We expect to have them us partners in YEML. We will continue to have good relations with Escorts in future," he added.At present, YEML is a joint venture between Yamaha Motor Co and Escorts with the former having 74 per cent equity.

In June 2000, Yamaha Motor had increased its equity in the Indian joint venture to 76 per cent from 50 per cent by buying out 24 per cent stake from its Indian partner - the Nanda family in Escorts for Rs. 200 crores. This led to the transfer of all management control to the Japanese company.

Escorts had entered into a technical agreement with Yamaha in 1985 to make Yamaha brand of motorcycle in the country which was later converted into an equity partnership in 1995.

Yamaha Motor Escorts (YMEL) launched a new four stroke motorcycle and said it would also launch other two-wheelers in the Indian market to meet consumer demand. The new 106 cc Motorcyle - 'crux' - would be priced at Rs. 41,200 (Ex-showroom, Delhi) and would compete in the biggest growing segment of four stroke 100 cc motorcycles in the domestic market, a company official said.

- PTI

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