Ashok Leyland JV with Finland-based Alteams group

Chennai, Jul 3: Ashok Leyland, the flagship of the Hinduja Group, has entered into a joint venture with Finland-based Alteams group to manufacture high pressure die casting (HPDC) aluminimum products predominantly for the automotive and telecommunications sectors.

The 50:50 Joint Venture(JV) will synergize Ashok Leyland's experience and expertise in the automotive sector with Alteams' know-how of HPDC and their insights into telecommuncations sector.

Apart from a fusion of the respective strengths of both the partners, the JV reflects the expansion of Ashok Leyland Group's presence in the auto components sector to take advantage of rapidly growing opportunities, both in India and abroad, Ashok Leyland Managing Director R Sehasayee told newspersons here today.

"We are already present in the foundry business through Ennore Foundries. This JV brodens our portfolio to meet the demand of castings from the automotive and telecommunications sectors," he added.

According to the plans, the JV will commence activities this year and phase one will be completed by 2008 at an investment of over Rs 1.57 billion.

After the completion of phase II in about five to six years, which will overlay and extend beyond Phase one, the JV will achieve a tunover of Rs 6.5 billion with a total investment of Rs 3.35 billion. It will generate employment, directly and indirectly, in excess of 1000.

The JV was well-placed to benefit from the robust growth in both telecommunications and automotive.

The manufacturing facility in Phase one has been planned in Tamil Nadu. The JV will produce components for the telecommunications sector such as those fitted in the transmission and receiving equipment. It will also partly meet Ashok Leyland's captive requirements for components for engines and gearboxes and in the automotive sectors, including passenger cars and for non-automotive applications as well.

The target markets will extend beyond India.

UNI