Business Daily from THE HINDU group of publications
Thursday, Nov 09, 2006
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Business Daily from THE HINDU group of publications Thursday, Nov 09, 2006 ePaper |
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Corporate
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Modernisation Vectra to invest $61 m in Tatra plants' revamp Mayur N Shah
Shareholding The Vectra group recently acquired 80.5 per cent stake in Czech truck manufacturer Tatra for $57.8 million from US-based Terex Corporation. With this acquisition, Vectra — along with the private equity arm of Belgian Bank, KBC and two other American investors that form the Vectra consortium — now holds 92 per cent in Tatra.
Mumbai , Nov. 8 The UK-based Vectra group to invest $61 million (Rs 273 crore) in modernisation of Tatra plants in India, Slovakia and the Czech Republic. According to Mr R.K. Rishi, Chairman, Vectra Group, $11 million (around Rs 50 crore) will be spent on upgrading its Tatra plant at Hosur, Bangalore and around $50 million (Rs 224 crore) will be invested in the forging, casting and tool room departments of its plants in Slovakia and the Czech Republic over the next two-three years.
Acquisition
The Vectra group recently acquired 80.5 per cent stake in Czech truck manufacturer Tatra for $57.8 million from US-based Terex Corporation. With this acquisition, Vectra — along with the private equity arm of Belgian Bank, KBC and two other American investors that form the Vectra consortium — now holds 92 per cent in Tatra. The Indian subsidiary Tatra Vectra Motors has come into the group's fold. The deal was approved by the Czech Anti-trust office UOHS and acquisition formalities were completed in the last two weeks. The consortium plans to buy the remaining 8 per cent from its retail investors.
Product Range
Vectra's individual stake in Tatra will be 50 per cent; it earlier held 11 per cent stake in the truck major. Tatra posted sales of $225 million on sales of 1,500 vehicles in 2005 with India being the largest market absorbing 1,000 units last year. The company has plans to bring in the tractor-trailer range into the country. In India, its existing product range consists of the off-highway trucks, tippers and dumpers in the 30-tonne category, which it sells to Bharat Earth Movers. The $400-million Vectra group has its presence in engineering, automotive, material handling and construction equipment, real estate and the IT sectors in the UAE, Slovakia, the Czech Republic, the UK and Canada.
More Stories on : Modernisation | HCV/LCV/Tractors
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