Piaggio to hike investment

He, however, was non-committal on issues such as size of investment and whether the company wants to go it alone or operate through its joint venture partner in LML.

Emprin said that the company was ready to introduce in India its range of international models and engine technology which meets European and Indian emission norms for year 2000.

It may be pointed out that Piaggio’s plans to enter into another joint venture for two-wheelers may run into rough weather as it is against government policy. The agreement between Piaggio and Singhanias for LML joint venture also stipulates that Piaggio cannot enter into another jointventure for similar business. Emprin, however, did not deny having talks with other players in the two-wheeler industry.

The company plans to export over $5 million worth of components from India in this fiscal, said Emprin. "Our plan is to reach an export target for components in the range of $100 million per year from India," he added. This, he said, will be achieved within next two years.

Emprin said that the company has been talking to Scooters India and hopes to make it a major sourcing partner. He, however, stressed that the company has not filed an FIPB application to invest in Scooters India and has no immediate plans to go for a wholly owned subsidiary in the country.

However, to showcase its seriousness on flow of technology into the Indian market, Emprin said that Piaggio is displaying a range of new generation vehicles for the Indian consumers at the on-going India Engineering Trade Fair at the Capital’s Pragati Maidan.

On the dispute with its joint venture parnter, the company said thatit was awaiting the Supreme Court ‘s judgment on March 16. Reiterating his faith on the Indian judicial system, Emprin said that his company will follow the law of the land, in case the decision of the court goes against the company.

Emprin said that the future plans of Piaggio also depend on the Supreme Court decision.