Fiat India, the 50:50 joint venture between Italian carmaker Fiat and Tata Motors, has reported Rs 22 crore profit for the first quarter against Rs 166 crore loss for the corresponding period a year ago. Revenues doubled to Rs 967 crore from Rs 473 crore. This signals a turnaround in the three-year-old joint venture, given the losses it had accumulated in the past many quarters.
From January 2008 to March 31, 2010, the joint venture had a cumulative loss of Rs 971 crore. The loss for the last fiscal was Rs 272 crore. The Fiat India Automotive Private Ltd (FIAPL) had invested Rs 4,000 crore in Ranjangaon to build a plant with a capacity to make 1.6 lakh units a year. Fiat accounts for 70,000 and Tata Motors, the balance. .
The increased capacity utilisation by both the partners and expanding joint dealerships are helping the venture stabilise production and marketing operations.
Fiat makes mid-size Linea and hatchback Grande Punto and Tata Motors makes Indica Vista and Indigo Manza at Ranjangaon. The capacity utilisation at the plant has been increasing over the years. In the last fiscal, Fiat produced 24,000 cars and this year it hopes to double production, according to Mr Rajeev Kapur, Chief Executive Officer (CEO), FIAPL.
Source :: http://www.thehindubusinessline.com/...1650720200.htm