Vijay Mallya-led UB Group Wednesday sold a stake of 42.5 percent in its Formula 1 team Force India to Subroto Roy-led Sahara Group, which will invest $100 million in the team.
"We have arrived at a partnership with the Sahara Group, which will invest $100 million in the team and would now own an equity stake of 42.5 percent, I will own 42.5 percent and the rest 15 percent would be owned by the Mol family," Mallya said at a press conference here.
The team would heanceforth be known as Sahara Force India.
"We will use the funds for a new air tunnel, better R&D (research and development) and ungradation of some of the facilities at the company's factory based in Silverstone in the UK," Mallya said.
Roy, who will become the chairman of the board of the team, said: "Now we have to sit together, talk together, and discuss about how to make this team as the best team."
Liqour baron Mallya had bought the Spyker Ferrari Formula 1 team in 2007 through a joint venture company named Orange India Holdings with Dutch e-commerce businessmen Jan and Michiel Mol, for reportedly around 90 million euros.
The team was renamed Force India in the 2008 season.
Currently, the team is placed at the sixth position in the F1 rankings and is based in Silverstone, Britain.
The liqour baron also owns an Indian Premier League (IPL) team, Royal Challengers Bangalore. Sahara Group holds interests in financial services, real estate, media and hospitality sectors and is a major promoter of sports in India.
The company also owns IPL team Pune Warriors India and sponsors the Indian cricket team.