Ashok Leyland signs framework accord with AVIA

Chennai, July 19: Ashok Leyland, the Indian flagship of the Hinduja Group, has signed a framework agreement to acquire the Truck Business Unit of AVIA a.s. in Prague.

Headquartered at Prague, AVIA makes the D Line trucks in the 6T to 9T GVW range and has marketing footprints in Europe.

According to a company release the acquisition covered the facility at the heart of the Czech capital, with an annual production capacity of 20,000 vehicles, supported by a state-of-the-art cataphoretic paint shop and R&D facilities.

The sale was subject to the completion of certain conditions as well as corporate and statutory approvals by both Ashok Leyland and AVIA. The acquisition was expected to take place by the end of August 2006.

Spelling out Ashok Leyland's plans for AVIA, he said though the present volume of sales from AVIA was limited, there was a good potential to scale up, through new markets such as the Middle East, South East Asia, Russia and Ukraine and by consolidating and strengthening existing dealership arrangements in Europe.

UNI