New Delhi: MG Motor plans to dilute shareholding in its wholly owned business in India as the company looks to tap capital markets or raise funds through a financial or strategic investor. It is planning to start work for a second factory in Gujarat beyond its current plant at Halol, MD & CEO Rajeev Chaba has said.
MG, a British brand owned by China’s SAIC, is looking to raise funds to support expansion after facing approval delays due to higher government scrutiny on companies owned in countries that share borders with India.
Chaba said MG – which faced IT raids in November last year – wants to drive strong localization in its operations. “Our theme is to do more and more Indianisation in terms of everything we do. This includes localization of management, localization of products, high local production and even supporting and nurturing skills,” he added.
To support long-term expansion, the company needs a reliable financing option. “After two years, we will need funds for another plant. For this, we will look for a strategic partner or investor, and may go for the IPO.”
MG plans to launch a new electric car later this year, which will have a bracket of Rs 10-15 lakh.
“We expect to turn profitable and generate cash from this year onwards. To meet our short-term expansion and support new product launches, we will manage through working capital, external commercial borrowings and internal cash generation.”
MG, a British brand owned by China’s SAIC, is looking to raise funds to support expansion after facing approval delays due to higher government scrutiny on companies owned in countries that share borders with India.
Chaba said MG – which faced IT raids in November last year – wants to drive strong localization in its operations. “Our theme is to do more and more Indianisation in terms of everything we do. This includes localization of management, localization of products, high local production and even supporting and nurturing skills,” he added.
To support long-term expansion, the company needs a reliable financing option. “After two years, we will need funds for another plant. For this, we will look for a strategic partner or investor, and may go for the IPO.”
MG plans to launch a new electric car later this year, which will have a bracket of Rs 10-15 lakh.
“We expect to turn profitable and generate cash from this year onwards. To meet our short-term expansion and support new product launches, we will manage through working capital, external commercial borrowings and internal cash generation.”