Contrary to belief in the stock market, which saw some volatility in the TSL scrip after wire agencies flashed the news of amalgamation on Wednesday, SAEL is a recently floated company. Its only asset is that it has been floated at a most auspicious time on a most auspicious day. It has identical object clause as that of TSL ie. manufacture and marketing of mopeds, motorcycles, scooters and such other two wheelers.

By amalgamating TSL with SAEL, the former will acquire the excellent `stars' of the latter which should help thecompany to improve its already good performance in terms of profits, market share, new products etc. Ironically, the arrangement is such that TSL will take only the `stars' of the new company and not its name. For obvious reasons the amalgamated company would be renamed TVS Suzuki Ltd.

Venu Srinivasan group in the TVS family has already effected a similar exercise for its finance companies. In March 1988, the group had merged two existing finance companies viz. Harita Finance Ltd and TVS Lakshmi Credit Ltd with a newly incorporated company Harita Srinivasa Finance (P) Ltd. The merged company was renamed Harita Finance Ltd.

TSL board which met on Thursday approved the amalgamation.

Even with its existing `stars' TSL has been growing impressively. It is likely to post a turnover of around Rs 1300 crore for the fiscal 1998-99 compared to Rs 1018.62 crore in 1997-98. During the year the company also entered the scooter segment in which it was not present with the launch of its four stroke 150 cc scooter`Spectra'. The vehicle is being gradually introduced in various markets in the country.

The company is planning to bring out four stroke motorcycles by the end of this calendar year and convert its entire product range to four stroke technology, in the near future in a bid to adhere to future emission norms.