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Daewoo to infuse $ 100 million to step up production

Daewoo Motors Company of South Korea has sought permission from the Foreign Investment Promotion Board to infuse $ 100 million into its Indian subsidiary Daewoo Motors India Limited.

The fresh equity infusion would be utilised for stepping up production of the Matiz, the Cielo and the Nexia.

DMIL managing director Shiv Gopal Awasthi said today that the application has been filed to the FIPB as per its business plan for India.

''It is a necessary step to facilitate infusion of capital as and when required to improve our financial status. It also speaks about Daewoo's commitment towards Indian operations.''

''Looking at the growth of demand for the Matiz and the Cielo, we are gearing up fast to step up supplies. The growth trend of our products is highly encouraging,'' Awasthi said.

Though a final time-frame has not been fixed for the capital infusion, it comes in the wake of the financial crisis which Daewoo Corporation is facing back home in Korea.

UNI

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