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Our Bureau

Kolkata, July 10 TRF Ltd is shifting the production of trailer undergears facility of York Transport Equipment (Asia) Pte, a Singapore-located subsidiary, from Australia to its plant at Jamshedpur.

Mr Sudhir Deoras, Managing Director of TRF, said here on Friday that full-fledged manufacturing of undergears, such as axles and suspensions, would start in the next three months at Jamshedpur. “The shifting would cost Rs 50 crore,” he pointed out.

The assembly work at the Australian site would, however, continue, he said.

In the existing operational space of bulk material with automotive applications, the company is setting up a unit at the Vendor Park in Lucknow through a joint venture with Adithya Automotive Applications.

“This unit would exclusively cater to the needs of Tata Motors for rigid body applications such as tippers, refrigerated vans, garbage compactors or trailers,” Mr Deoras said.

The company would spend $17 million to acquire 100 per cent stake in Sri Lanka-based Dutch Lanka Trailer Manufacturers (DLT).

The Indian joint venture of DLT with Tata International, its Sri Lanka repairs and servicing subsidiary, and its manufacturing subsidiary in Oman would automatically be synergised with the TRF activity. DLT-Tata International joint venture has a manufacturing base in Pune and has the capacity of producing 3,000 trailers a year.

A mix of debt and internal resources would be used to finance the acquisition and other growth plans, including technology upgradation.

TRF has proposed to issue bonus shares in the ratio of 1:1. It has also proposed to increase its authorised capital from Rs 15 crore to Rs 30 crore.

Shareholders’ approval will be sought for increasing the borrowing limits from Rs 100 crore to Rs 200 crore at its AGM on July 20.

More Stories on : Restructuring | HCV/LCV/Tractors

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