Steel magnate Sajjan Jindal could soon become a strong force in Indian auto market

Renowned steel magnate Sajjan Jindal is reportedly in the process of establishing a significant presence in the Indian auto market. The plan involves acquiring a substantial stake in MG Motor India, a unit of the Chinese company SAIC, and subsequently acquiring Ford’s factory in Chennai through a new entity. Concurrently, Jindal is actively engaged in discussions with the Chinese auto company Leapmotor to secure a technology license for manufacturing electric vehicles.

This strategic move has been in progress for approximately a year, and sources suggest that a deal between a Sajjan Jindal entity and MG Motor is nearing finalization, ToI reported on October 27. Talks between Jindal and MG Motor India/SAIC were first reported in April of this year, and negotiations are progressing toward a conclusive agreement.

MG Motor views Sajjan Jindal as an ideal partner, especially in light of the challenges it faces in obtaining funds for expanding its operations in India. MG Motor had explored discussions with other entities such as Reliance Industries, the Hero group, and Premji Invest, but Jindal has emerged as the leading contender.

Due to increased scrutiny on Chinese companies following tensions at the India-China border, MG Motor has encountered obstacles in securing investments from its parent company and faces challenges in fundraising through other channels.

For Sajjan Jindal, a partnership with MG and SAIC would provide immediate access to a range of technologies and vehicle platforms, positioning him favorably to compete with established players in the Indian and global automotive market. It is speculated that Jindal may initially acquire over 30% stake in the new entity, with MG Motor retaining the majority along with local financial institutions and employees. However, as part of a planned IPO at a later stage, the Chinese company’s share is expected to decrease, allowing the Jindal entity to assume a controlling stake.

While a spokesperson for MG Motor India declined to comment on the specific details, they mentioned that the company is exploring options to expand its presence in India. The JSW group, associated with Sajjan Jindal, also refrained from making comments. Ford Motors, the current owner of the Chennai plant, stated that they are exploring alternatives for the facility.

Read original article here

Denial of responsibility! News Continue is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a Comment