Ashok Leyland signs JV with Finland's Alteams

New Delhi, July 3: Ashok Leyland, flagship company of Hinduja Groups in India, today said it has entered into a 50:50 joint venture (JV) with Finland's Alteams Group to manufacture high pressure die casting (HPDC) aluminum products for the automotive and telecommunications sectors.

''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,'' said company's Managing Director R Seshasayee said in a statement.

The JV will synergise the company's experience and expertise in the automotive sector with Alteams' know-how of HPDC and their insights into telecommunications sector.

''We are already present in the foundry business through Ennore Foundries. The JV broadens our portfolio to meet the demand of castings from the automotive and telecommunications sectors,'' Mr Seshasayee said.

The JV will start activities this year and Phase I will be completed by next year at an investment of over Rs 175 crore. At the completion of Phase II in about five to six years which will overlay and extend beyond Phase I, the JV will achieve a turnover of Rs 650 crore with a total investment of Rs 335 crore and will generate employment, directly and indirectly, in excess of 1,000, the statement said.

The manufacturing facility in Phase I has been planned in Tamil Nadu and the JV will produce components for the telecommunications sector such as those fitted in the transmission and receiving equipment.

It will also partly meet the company's captive requirements for components for engines and gearboxes.

In Phase II, the JV will enhance its product portfolio with HPDC components for automotive sectors including passenger cars and for non-automotive applications as well the target markets will extend beyond India.

UNI