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Prague,
July 19th 2006
AVIA
Trucks to be Ashok’s window into
Europe
AVIA, a.s., an Odien Group company, and Ashok Leyland Ltd.,
the Indian flagship of the Hinduja Group, announced the signing a framework
agreement for the sale of AVIA’s Truck Business Unit to Ashok Leyland.
The sale is subject to the completion of certain conditions as well as
corporate and statutory approvals by both Ashok Leyland and AVIA.
AVIA’s
Truck Business Unit, manufactures truc
ks
in the medium truck segment in
Prague
. AVIA Truc
ks
’ main markets are the
Czech
Republic
,
Hungary
,
UK
,
Ireland
,
Italy
,
Slovakia
and
Spain
. AVIA was revived in 2005 through an aggressive
restructuring and investment program following Odien’s acquisition.
AVIA recently expanded its 6 to 9 tonne GVW (gross vehicle weight) D-Line
series product range to 12 tonnes with the introduction of its 10 tonne (D100),
11 tonne (D110) and 12 tonne (D120) models. The new models were fully developed
in-house in less than a year and were introduced with EURO 4 engine technology
in early June at AUTOTEC 2006, the
Czech
Republic
’s biennial commercial vehicle fair in
Brno
.
Ashok
Leyland, an Indian commercial vehicle manufacturer based in Chennai had 2005
annual revenues in excess of USD 1.2 billion and exports to over 30 countries in
Asia
, the
Middle East
,
Africa
and
South America
. Ashok Leyland
is part of the Hinduja Group, a multi billion dollar transnational conglomerate with
a diversified portfolio of businesses. “AVIA
is part of our inorganic growth plan and is a significant step in securing a
beachhead in the European Union and the Eastern European markets.
The acquisition will also give us a modern, international vehicle for our
light and medium commercial vehicle range of truc
ks
for India and other export markets”, said Mr. R.
Seshasayee
, Managing Director of Ashok Leyland.
The strategic location of AVIA also opens up possibilities of using its
facilities as an assembly and marketing base for some of Ashok Leyland’s
future products. Ashok also intends
to use the AVIA brand for some commercial vehicles planned to be produced in the
future.
“It
is a very compelling fit. Ashok
Leyland will gain a modern truck, design capabilities, and access to the
European market and AVIA Truck Business Unit will gain a strategic parent
resulting in significant savings in purchasing and access to Ashok’s existing
markets. The strategic rationale and
the combined capabilities under Ashok ownership have the potential to make AVIA
Truc
ks
a global player.” said Mr. Michael Saran, Chairman of
AVIA, a.s.
PRESS CONTACTS:
Press
inquiries for AVIA:
Mr. Vladimír
Jaroš
Tel. 606 762 672
e-mail: vladimir.jaros@avia-trucks.com
Press
inquiries for Ashok: Mr. J N Amrolia,
Executive Director, Ashok Leyland
Tel. + 91 44 2534 0482 e-mail:
amrolia@ashokleyland.com
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