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M. Ramesh

Chennai, Nov. 6 Hinduja-group owned Ashok Leyland is looking to having a vehicle finance company to support sales of its vehicles, it is learnt.

The finance company could be either through an acquisition of an existing company by the Hinduja-owned Amas Bank, (headquartered in Switzerland) or by setting up a new company.

Asked about this, Ashok Leyland’s Managing Director, Mr R. Seshasayee, said that he was not prepared to comment at the moment.

Other sources in the company also declined comment, but said that some announcements could be expected over the next few days.

Sources told Business Line that Amas Bank is looking to acquiring a Chennai-based finance company — presumably, to avoid the time that it takes to set up a new company.

This, then, is the second time that Ashok Leyland would have a finance company (either a subsidiary or a group company) to support its sales.

In 2004, the erstwhile Ashok Leyland Finance, a subsidiary of Ashok Leyland, was merged with IndusInd Bank, which was also promoted by the Hinduja group.

The idea then was primarily to give the bank a leg-up to its retail business through Ashok Leyland Finance’s loan portfolio and expertise.

Recently, IndusInd Bank’s Managing Director, Mr Romesh Sobti, told Business Line that the merger had not worked as expected.

Meanwhile, Ashok Leyland also began to feel the need for having a finance company of its own.

It is also confirmed that Mr S. Nagarajan, former Managing Director of Ashok Leyland Finance and former Joint Managing Director of IndusInd Bank, who superannuated from the bank in December 2007, is back with Ashok Leyland.

More Stories on : Outlook | Consumer Finance

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