The Hindu Business Line : Iveco, Hindujas in pact to enlarge co-operation

IVECO, the commercial vehicle company of Fiat of Italy, and the Hinduja group have concluded a new agreement which speaks of "significantly enlarging the cooperation" between the two entities.

The twosome together hold majority stakes of 51 per cent in Ashok Leyland Ltd and 59 per cent in Ennore Foundries Ltd.

Specifically, the agreement speaks of co-operation in three areas.

First, Ashok Leyland will have the right to demand access to any technology of IVECO.

The company will have a preferred option for accessing world-class IVECO technology including light, medium and heavy-duty trucks as well as buses, special vehicles and power train technologies.

The commercial aspects, however, is a subject of negotiations on case-by-case basis.

Secondly, Ashok Leyland and IVECO will jointly explore export opportunities. "In the past we were looking at overseas markets independently of IVECO. Now we will address the markets pooling our strengths," Mr R. Seshasayee, Managing Director, Ashok Leyland, told Business Line on Tuesday.

Thirdly, the agreement paves the way for IVECO to buy components from Ashok Leyland and its associate company, Ennore Foundries. A task force has been set up to look into the possibilities. Ennore Foundries is putting up a new 50,000 tonne-per-annum foundry. Mr Seshasayee said the agreement could lead to IVECO buying machines components and foundry products.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ONGC to pick up stake in SPV for Tripura power project

Carrera Holdings to invest Rs 500 cr in Maharashtra

S&P makes open offer for majority stake in Crisil

Open offer for Everest from March 18

Burren Energy buys Unocal's share in HOEC for $26 m

GAIL, Infosys in pact

Iveco, Hindujas in pact to enlarge co-operation

GAIL inks pact with Bangladesh firm

Wartsila inks power sale pact with PTC