Chennai, Jan 12: The Satyam fiasco, which rocked the IT industry, and the Tatas pulling out of the prestigious 'Nano' project from Singur last year, would in "no way" affect flow of Foreign Direct Investments (FDI) into India, a top official of luxury car maker Volvo Car India said.
"I don't think such incidents will play a big role in this country. From the long-term point of view, I think the need for FDIs will increase for a country like India," Volvo Car India Managing Director Paul de Voijs said.
"This Satyam case may be a larger issue here, but I think that will not get much attention in any other country," he said.
On the company's performance after entering the Indian market last year, he said the car maker has so far sold 100 units. "As part of our expansion plans, the company already proposes to set up more dealerships across the country," he said.
"Right now we have three dealers and this year the fourth dealer will be appointed in Hyderabad. It will be followed by one each in Cochin, Mangalore, Chennai, Ahmedabad, Pune and Kolkata," he said.
Stating that the company rides on "quality performance" than quantity, he said they are focused "more on quality than producing volumes".
The report further added that a multi-million-dollar software facility being built on Deak in University's campus in Geelong is also under a cloud as the future of Satyam remains uncertain.
On Wednesday, Satyam's founder-chairman B Ramalinga Raju admitted of inflating the accounts of the firm and was later
arrested with B Rama Raju, his brother and co-founder, on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery.
Satyam chief financial officer Srinivas Vadlamani was also arrested on Saturday.
The Satyam fraud case has forced the Indian government to appoint three members to the board of Satyam after it dismissed the incumbent board to restore investors’ confidence.
Bureau Report