Ashok Leyland on Tuesday said it has formed a joint venture with Finland-based Alteams Group that will invest Rs 175 crore initially to make aluminum products for automotive and telecom sectors.
"Apart from a fusion of the respective strengths of both partners, the JV reflects the expansion of Ashok Leyland group's presence in auto components sector to take advantage of rapidly growing opportunities both in India and abroad," Ashok Leyland Managing Director R Seshasayee said.
The 50:50 joint venture would manufacture High Pressure Die Casting (HPDC) aluminium products, Ashok Leyland said in a communique to Bombay Stock Exchange.
The JV would start operations this year and first phase will be completed by 2008 at an investment of over Rs 175 crore. With the completion of second phase, the JV would achieve a turnover of Rs 650 crore and generate jobs for over 1,000 people, Ashok Leyland added.
The manufacturing unit in Tamil Nadu will also be used to partly meet Ashok Leyland's captive requirements for components for engines and gearboxes.Shares of Ashok Leyland were trading at Rs 38.20, up 1.19 per cent on BSE in afternoon trade.
The JV would synergize Ashok Leyland's expertise in automotive sector with Alteams' know-how of HPDC and their insights into telecom sector, it said.
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