New Delhi: While Renault SA looks to strengthen its grip on the low-cost vehicle market globally, progress in India with sales of the Logan, the car it is selling with Indian auto maker Mahindra and Mahindra Ltd, has been lagging expectations and the car maker is now looking at changing its strategy for the model in the country.
Patrick Blain, executive vice-president of sales and marketing at the French auto maker, has told trade publication ‘Automotive News’ that he does not expect sales of the sedan to achieve the 50,000-unit target that has been set for 2008, having sold just 12,700 units in the first half of the year.
Blain added that because it is now fighting for a share of a smaller market, Renault “may need to revise the product strategy for the Indian market”. The 2008 target for Logan sales has been revised to between 25,000 and 30,000 units. ‘Mint’ could not independently verify the news.
GVK Power in talks with 3 PE funds to sell equity
Hyderabad: Infrastructure firm GVK Power and Infrastructure Ltd is in negotiations with three global private equity (PE) funds to offload up to 25% equity in its power business, according to group chief financial officer Isaac A. George.
“Several PE funds have been approaching the company expressing keen interest in picking up stake in our power vertical, with some of the PE funds apparently more attracted by the low...price of the company in a depressed stock market,” he added. But, George said GVK is not interested in offering stakes to any PE funds at current market prices.
“According to our own assessment, based on discounted cash flow methodology, our intrinsic value is far higher than the current market value,” he maintained. But, George refused to say what that “intrinsic” value might be, adding: “We cannot reveal that. (It) will become a benchmark for the PE firms to negotiate.”
GVK Power’s shares closed traded at Rs31.15, up 3.66%, on Monday, having been as high as Rs93.50 in the past year on the Bombay Stock Exchange. George said the value arrived at by the company was somewhat lower than the year’s high. “Three PE funds have already started due diligence exercise and we expect the process to be completed in the next three-four weeks,” he said, while declining to name them.
The ‘Financial Chronicle’, in a story earlier this month, said GVK is in talks with PE entities that include Blackstone Group LP, General Atlantic and Carlyle Group to raise up to $150 million (Rs640 crore). The paper did not disclose the source of its information.
GVK group promoters hold 60.8% in GVK Power. C.R. Sukumar
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