Ashok Leyland to acquire AVIA truck business

Kolkata, Jul 19 (UNI) Ashok Leyland, the Indian flagship of the Hinduja group, today signed an agreement to acquire the truck business unit of Prague based AVIA.

''The acquisition will give us a modern international vehicle for the light commercial vehicle range of trucks for India and other export markets,'' Ashok Leyland's managing director R Seshasayee told reporters here.

''The acquisition will give us Euro III and IV compliant LCVs in the range of seven to nine tons capacity and act as a platform for growth in export markets like Turkey, Iran, Russia and other European countries,'' he said.

The acquisition covers the facility at the heart of the Czech capital with an annual production capacity of 20,000 vehicles, which is supported by a state-of-the-art cataphoretic paint shop and R&D facilities.

Mr, Seshasayee, however, did not divulge the cost of the acquisition as the sale was subject to completion of certain conditions as well as statutory approvals by both the companies. He said the acquisition would take place by August end.

The MD said following acquisition, which was being made through a wholly owned special purpose vehicle (SPV), the returns were expected in two to three years time.

The company would bring in the AVIA LCVs to the Indian market in phases.

UNI TJP PC RN1843