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Embattled truck-maker AMW Motors hopes to export to a number of geographies once a deal is reached to sell a strategic stake to a potential buyer.
A consortium of lenders led by IDBI Bank had sought interested parties to demonstrate their ability to infuse at least ₹200 crore as equity and another ₹225 crore as unsecured or promoter long term loans.
Bhuj-based AMW Motors had fallen into bad times following the auto industry recession of 2012-13.
The company, which makes trucks ranging from 16 to 49 tonne, has a capacity of 50,000 vehicles at its Bhuj plant.
Once the deal is inked, the truck manufacturer would look at exporting trucks to countries in West Asia, Africa, South America, Commonwealth of Independent States and South-East Asia.
AMW Motors, which already has sold 40,000 trucks, will also foray into development of new trucks that meet emerging emission norms. In February, IDBI Bank, leading a consortium of lenders, invited an Expression of Interest (EoI) to acquire a minimum 51 per cent equity and management control in AMW Motors.
The EoI was issued under the Strategic Debt Restructuring (SDR) scheme.
The company’s outstanding loan amount stood at ₹1,815.43 crore (including interest overdue) as of January 31, 2016.
For Kamaz Motors, this would be its second attempt to foray into the domestic competitive truck market.
The company, which had entered India in 2009 through a joint venture with the UK’s Vectra Group, had stopped assembling trucks in India last year.
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