IndiaCatalog.com
India News
Search Web Directory
News Home
Ashok Leyland to merge LCV units with itself, files for regulatory nods
Posted on 13th June 2018
Hinduja group flagship Ashok Leyland has decided to merge its light commercial vehicle subsidiaries such as Ashok Leyland Vehicles, Ashley Powertrain and Ashok Leyland Technologies, with itself, subject to necessary regulatory and other approvals, including from the National Company Law Tribunal’s (NCLT) Chennai branch.

The board has approved the merger of these subsidiaries, which were acquired by the company from its erstwhile joint venture partner Nissan. In the JVs, Ashok Leyland held a 51% stake in Ashok Leyland Vehicles and Ashley Powertrain, and a 50% stake in Ashok Leyland Technologies.

On November 25, 2016, Ashok Leyland announced that it has completed the acquisition of Nissan Motor Co’s stake in each of the three joint ventures (JVs) formed between the two companies way back in 2008. With all necessary statutory approvals now in place, the acquisition was completed for a consolidated consideration of `3 paid by Ashok Leyland for all the shares of the three JVs, the company then informed the stock exchanges.

In a filing, Ashok Leyland said that the amalgamation will enable the consolidation of the LCV businesses of the transferor companies into one entity, which will facilitate focused growth, operational efficiency, integration synergies and better supervision of the business of the entities.

The amalgamation will enable pooling of resources of the transferor companies with the resources of the transferee company to their advantage, resulting in more productive utilisation of the said resources, and cost and operational efficiency, which would be beneficial to all stakeholders. The amalgamation would facilitate scaling of operations, reduce administrative costs and garner greater visibility in the market. The amalgamation would reduce the layers of shareholding and enable the transferee company to hold the assets and business of the transferor companies directly; the amalgamation will enable smoother implementation of policy changes at a higher level from a management perspective and shall help enhance the efficiency and control of the entities, Ashok Leyland said further.

According to the sources, close to Rs 1,000 crore was invested in these three companies over the years and Ashok Leyland had to make an impairment provision of `214 crore a few years ago.

According to its filings with the stock exchanges, Ashok Leyland said that as on March 31, 2018, the net worth of its first subsidiary Ashok Leyland Vehicles is negative with `248.31 crore on a turnover of `1,655 crore. The second subsidiary, Ashley Powertrain, has a positive net worth of `191 crore with a turnover of Rs 358.36 crore. The third subsidiary, Ashok Leyland Technologies, has a negative net worth of `92.38 crore and a turnover of Rs 60 crore.

Earlier on November 25, in a press release, Ashok Leyland chief executive officer and managing director Vinod K Dasari said, “This is an important milestone in the history of Ashok Leyland. We are very positive on the future of the LCV business, which is growing. While we have acquired 100% ownership of the JVs, we will continue to be associated with Nissan for the technology of the existing Dost, Partner and Mitr models. These are important products for us and hold tremendous potential both within and outside India. Our association with Nissan continues in a new relationship.”

Under the new arrangement, Ashok Leyland will continue to build, under a licensing agreement, the successful Dost, Mitr and Partner light commercial vehicles, which are based on Nissan’s design, engineering and technology.

Related Companies: Ashok Leyland Limited   

Other Latest News
ONGC in talks to buy five GSPC blocks
Posted on 16th August 2018
Mumbai: The country’s largest oil exploration and production company, Oil and Natural Gas Corp. Ltd (ONGC), is in talks to buy five blocks from the Gujarat State Petroleum Corp. Ltd (GSPC), according to two people aware of the development.

The move comes against the backdrop of ONGC acquiring an 80% stake in GSPC’s Deen Dayal block in the Krishna Godavari Basin in December 2016 for 7,738 crore. The Gujarat government owns an 87% in GSPC.


Microsoft Surface Laptop: The best Windows PC money can buy
Posted on 16th August 2018
As anyone who has used a Microsoft keyboard or mouse will tell you, thes Redmond-based company makes some excellent hardware. So a couple of years back, the company decided that it was time to extend this expertise to computers as well. The Surface series has been a success in more ways than one. But it has not been that popular in India, primarily because Microsoft has not offered many choices to the buyers.

Sensex tanks 190 points on open, Nifty down 60 points as rupee tumble continues; Kotak Mahindra Bank down 2%
Posted on 16th August 2018
Sensex, Nifty today: The Indian stock market opened lower on Thursday, even as concerns surrounding the rupee and cues from the global market weigh. The Sensex opened at 37,796, and soon plunged nearly 150 points to hit the day’s low at 37,644 within minutes of opening. The broader Nifty 50 opened at 11,397, below the psychological mark of 11,400. The rupee too opened at a record low of 70.32, recording a plunge of 43 paise against the dollar.

Amazon’s real rival in India won’t be Walmart but this company, once new e-commerce policy is in place
Posted on 16th August 2018
Jeff Bezos, meet Mukesh Ambani. It’s time the Amazon.com Inc. boss took notice of his real rival in India, the only billion-strong consumer market open to Western tech firms. While Walmart Inc.’s acquisition this year of Flipkart Online Services Pvt., a homegrown e-tailer, might have given the impression that the battle for India would be an all-American contest, a new national e-commerce policy doing the rounds in New Delhi should disabuse Bezos of that notion.

GMR Infra loss widens 72% to Rs 235 cr in Q1
Posted on 16th August 2018
GMR Infrastructure’s net loss on a consolidated basis widened by 72% year-on-year (y-o-y) to Rs 235.14 crore in the quarter ended June 30 on dwindling profits from its airports business and rising losses on the power segment.

Revenue in the quarter fell about 33% to Rs 1,876.2 crore from the same period last year. Profits from the company’s flagship airport segment fell 60% y-o-y to Rs 277 crore, notwithstanding the 14% traffic growth in the same period.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Ashok Leyland to merge LCV units with itself, files for regulatory nods
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Ashok Leyland to merge LCV units with itself, files for regulatory nods

Most Read News

PNB to raise Rs 8,600 crore through asset sale in FY19

Concor ropes in TCS to strengthen mobile app for reverse auction

Infosys to go ahead with Kolkata project worth Rs 1 bn without SEZ status

HPCL Q1 net up 86% to Rs 1,719 cr

Rupee, bond prices rise after RBI announces dividend payment

More India News

Photo Gallery

Volvo FH(13 Images) Volvo FH
Jwala Gutta(11 Images) Jwala Gutta
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement