The Hindu : Business : Daimler, Hero venture gets nod

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Friday, Mar 28, 2008
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Daimler, Hero venture gets nod

Special Correspondent

NEW DELHI: The Union Cabinet on Thursday gave approval to the Rs. 1,650-crore investment by Germany’s Daimler on its proposed joint venture with the Hero group for manufacturing commercial vehicles in India.

Daimler’s investment will constitute 60 per cent of the equity capital of the joint venture, an official spokesperson said here after a meeting of the Cabinet Committee on Economic Affairs (CCEA).

The joint venture will design, manufacture and sell commercial vehicles of above two tonnes for Indian as well as overseas markets. Moreover, the joint venture would source components from India for Daimler’s global requirements, besides undertaking research and development activity for new products and variants.

Lat year, Daimler and the Hero group had announced that they had agreed to form a joint venture for manufacturing light, medium and heavy commercial vehicles.

The joint venture would initially manufacture light commercial and heavy and medium commercial vehicles for the domestic market followed by exports at a later stage.

The vehicles produced would be variants of Daimler Trucks’ current product portfolio, which would be fine tuned to suit the Indian market conditions.

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