Business   

Ashok Leyland to float JV

Special Correspondent

Will make die-casting aluminium products

CHENNAI: Commercial vehicle maker Ashok Leyland Ltd. (ALL) has penned a pact with Alteams Group of Finland to float a yet-to-be-named equal joint venture to make high pressure die-casting (HPDC) aluminium products to serve the growing needs of automotive and telecom sectors.

The facility will come up near Chennai. And, the joint venture partners have already zeroed in on a few sites to locate their project.

The joint venture has drawn up a two-phase investment programme. The first phase will see it invest in all Rs. 175 crore. Work on Phase I will commence soon and will be completed by 2008.

Addressing a press conference here on Tuesday, R. Seshasayee, Managing Director of ALL, said the joint venture would be able to realise sales of Rs. 280 crore by 2008-09. In the interim (until the completion of the first phase), the joint venture would work from a leased facility and service the needs of the telecom sector.

“We (the joint venture) are ready to go on operational mode straightway,” he said. In this context, he said the joint venture would import semi-finished products from the Chinese facility of Alteams and convert them at the `leased facility’ into finished material.

The Phase II of the project would take five to six years for completion. The cumulative investment post-Phase II in the project would be around Rs. 335 crore, Mr. Seshasayee said. Phase II would also see the joint venture exploring non-telecom applications (such as the automotive sector). The joint venture was hoping to scale a turnover of Rs. 650 crore by then, he added.

The Managing Director also expected equal revenue flow from automotive and telecom sectors eventually.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Japan keen to invest in infrastructure projects
Sensex at new high
Move for coal sector tie-up with Australia
CIL mulls hiving off unit
Further rise in rupee
‘U.S. move on GSP may lead to job loss’
V-Guard plans to tap market
MeTecno unit to go on stream today
Nokia Siemens bags $900 m Bharti deal
Ashok Leyland to float JV
Gooogle acquires Web-calling service GrandCentral
British pound at new high against $
Spice fixes issue price at Rs. 46
Kraft offers $7.2 b for Danone’s biscuit operations
ONGC ties up with Norsk Hydro
Volkswagen sets up new co.
Interpublic acquires Lintas India
SAAG RR Infra income up 42 p.c.
Central Bank gets new General Manager
Tiger Airways set to enter India
Award for Tecpro Systems
L&T board declares special dividend
RailTel’s Wi-Fi systems at more stations
BHEL bags excellence award

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu