OSK SEES SUBBU APPOINTMENT A PRELUDE TO PROTON'S FORAY INTO INDIAN MART

KUALA LUMPUR, March 2 (Bernama) -- Proton Holdings Bhd's appointment of
Behara Venkata Rama Subbu as non-executive director is a prelude to more
significant developments in relation to its foray into the Indian market.

OSK Research Sdn Bhd, in a research report, said the appointment was
valuable for Proton, the national car manufacturer, given Subbu's vast
experiences over his 32 years in India's car industry.

It said Argentum Motors, founded by Subbu, initially planned to secure a
sizeable contract deal with global original equipment manufacturers (OEMs)
following the purchase of a plant from Daewoo for RM56.5 million (US$16.6
million) in 2007.

"Since the acquisition of the plant, news flow of securing manufacturing
tie-ups with global OEMs such as Peugeot and GM cropped up but unfortunately the
global financial crisis have derailed their ambitions.

"Judging from the recent appointment, we foresee the plant to be taken up by
Proton," it said.

OSK Research said, however, a missing link was the absence of a distribution
network for Proton to leverage on although it did not rule out the possibility
that Proton could also rope in a distribution deal with another established
carmaker.

"We think a deal can still be in the works with Hero Honda," it said.

It said all three, Hero Honda, Proton and Argentum could possibly set up a
new joint venture company.
-- BERNAMA


Attachments: