Delhi: The board of directors of Fiat India Pvt today announced Fiat Auto
SpAs'' increase in stake in Fiat India Pvt. Ltd. to 44.61 per cent from its
current 19.44 per cent through an investment of over Rs200 crore.
Since 1998, FIAT has made investments of Rs2,200 crore in India, towards building
its capacity and increasing infrastructure capabilities. The infusion of funds
represents for Fiat India free cash flow needed for future investments, to
repay debt, and restructure its dealer network to sustain its current operations.
Paolo Castagna, the newly appointed, MD of Fiat India Pvt. Ltd. stated, "This
decision from Fiat Auto SpA, shows, once again their commitment to the Indian
operations. Now our clear objective is to ensure we achieve the required growth
rates in the country by streamlining our operations and targeting our brand
strategy at the premium end."
identified our areas of focus, we aim to use the new strength of our balance
sheet to improve our overall dealer network, enhance our customer service
initiatives as per Fiat''s international standards, and increase internal cash
flows for vital investments."
the infusion, Fiat India Private Limited will be fully capitalised with Fiat
Auto SpA along with Fiat India Automobiles Pvt Ltd, together
holding a total of 99.83 per cent while the stake of Premier Automobiles Limited
will be diluted to 0.17 per cent.