BVR Subbu ventures new biz opportunity

New Delhi: Argentum Director and former Hyundai President, Mr B V R Subbu, along with 18 investors has ventured in to a new business by forming a joint venture company, Altius Auto World in collaboration with a 1.83 billion Japanese group Gulliver International.

The new company would offer after sales and service support for high end luxury cars, used cars, commercial vehicles and construction equipments. Mr Subbu and his investors would hold 49 per cent stake and infuse an equity of Rs 100 crore in almost equal proportion, while the majority 51 per cent stake would be held by Gulliver.

Altius plans to invest Rs 300 crore in the first phase and set up 20-30 after sales outlets spanning 12 states by end 2009. It also plans to spend Rs 700 crore for expanding the distribution network to 300 outlets in five years. Each service outlet would cater to multiple automobile brands.

He said that the company has not initiated any discussions with any of the auto companies yet.