IFC' nod to 45 mn euro Piaggio loan; firm to hire 300 in India

NEW DELHI: World Bank arm IFC today said it has sanctioned a 45 million euro (about Rs 270 crore) loan to Italian vehicle maker Piaggio, which plans to hire 300 people in India to expand its operations. "International Finance Corporation (IFC) is pleased to finance our first project with Piaggio. This will introduce more fuel-efficient engines in India and Vietnam and improve environmental standards in the transport equipment sector," IFC Director (Global Manufacturing and Services) Dimitris Tsitsiragos said in a statement. The 45 million euro loan will support expansion of the company's existing plant at Vinh Phuc in Vietnam and Baramati in India. "The expansion projects will create approximately 300 new jobs in India and 480 new jobs in Vietnam," IFC said. Additional jobs will be created along the value chain, as increased production will generate new demand for suppliers, distributors and post-sales services, it added. "The project will allow Piaggio to introduce a variety of new products, with improved fuel efficiencies, to the Indian market," the statement said. The Indian plant of Piaggio manufactures fuel-efficient diesel and turbo engines for its two-wheelers and light commercial vehicles. Commenting on the deal, Piaggio Group Chairman and CEO Roberto Colaninno said: "One of Piaggio's strategic priorities is expansion in emerging markets, particularly in Asia, with an increasingly eco-friendly and fuel-efficient product pipeline for both our two-wheeler and light commercial vehicles ranges." Source : Economic Times    (7/28/2010)