The Hindu : Business : Ford to infuse $75 m in Indian subsidiary

Online edition of India's National Newspaper
Saturday, Oct 29, 2005

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Business

Ford to infuse $75 m in Indian subsidiary

Special Correspondent

To support the company's aggressive growth strategy

CHENNAI: Ford Motor Company of the U.S. will bring fresh equity to the tune of $75 million into its Indian subsidiary.

The announcement on further equity infusion into Ford India Ltd. comes close on the heels of a two-day visit to India by Bill Ford, Chairman and CEO of the parent company.

Arvind Mathew, Managing Director and President of Ford India, said "to support the aggressive growth strategy we have in place, Ford India will be augmenting its subscribed capital. Ford India has received approval from Ford Motor Company for an additional equity infusion of $75 million to meet the needs of our future plans."

Ford India, with a present investment of $375 million in facility and operations, is in its ninth year of business in the country. It had started in 1996 as a joint venture with Mahindra and Mahindra (M&M). In March 2005, it became a wholly owned subsidiary of Ford Motor Company, after divestment of its crossholding portfolio with M&M.

Ford India manufactures and distributes automobiles made at its modern, integrated manufacturing facility at Maraimalainagar, near Chennai. It also has an operation to handle exports of auto components and kits.

Ford's present models in India include the Ikon, Mondeo, Endeavour and Fusion. The all-new Ford Fiesta will soon be delivered to dealerships across the country and will be available for customer test drives by mid-November.

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