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Daimler to buy Hero Group`s stake to do Indian truck business alone |
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Daimler AG is planning to buy out the Hero group`s stake to go it alone in the trucks business in India.
According to the agency reports, Daimler would pay euro 16 million (about Rs 105 crore) to buy Hero`s 40 per cent stake.
A Daimler press release said that the Hero group`s decision to pull out of the joint venture to the economic situation and the continuing weakness in demand in India.
Ina release, Mr. Andreas Renschler, the Daimler AG Board of Management member responsible for Daimler Trucks and Daimler Buses said, "I really regret the Hero group`s decision, but Daimler Trucks will nonetheless enter the truck volume market in India."
It also stated that Mr. Sunil Kant Munjal, Chairman, Hero Corporate Services Ltd, as saying that in light of the current economic downturn, declining market conditions and the group`s strength, Hero group has decided to maintain its focus and continue to grow its core business and not to pursue the commercial vehicles business at this time.
He said, "The decision is a result of amicable and mutual decisions between the partners and we shall continue to explore doing business together in the future."
At a recent industry event in Delhi, Mr. Munjal informed the media that there could be some minor tweaking in the joint venture.
(Posted on : 16/04/2009)
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| Daimler to buy Hero Group`s stake to do Indian truck business alone |
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