Daimler Trucks Builds its Presence in India
Dec 18, 2007 4:05 PM
Daimler Trucks has formed a joint venture with the Indian company Hero Group. Both companies have signed a shareholder agreement and are in the process of submitting the formally required application to the FIPB (Foreign Investment Promotion Board). On December 13, 2007, the Daimler Supervisory Board had approved the transaction.
The projected joint venture is first aimed at local production of light-, medium- and heavy-duty commercial vehicles for the Indian volume market. Production for export markets is expected to follow at a later stage. The vehicles produced will be variants of Daimler Trucks' current product portfolio tailored to the Indian market.
Local manufacturing operations for special applications of Mercedes-Benz trucks and buses will continue at DaimlerChrysler India Pvt. Ltd. Daimler Trucks are currently present in India with local manufacturing operations of the Mercedes-Benz Actros in Pune.
Daimler Buses recently announced its plans to enter a co-operation with the Indian Company Sutlej Motors Ltd and will begin producing Mercedes-Benz luxury coaches in Pune in the first quarter of 2008.
Andreas Renschler, Member of the Daimler Board of Management and Head of Daimler Trucks: "The decision to form this joint venture in India marks a milestone in Daimler Trucks' overall strategy to participate in the fast-growing emerging markets. In Hero we have found an excellent, experienced partner with a long tradition of manufacturing and know-how of the local industry. Hero has a proven track record of managing long-term relationships with global and domestic partners. We believe this is a strong foundation for a long-term co-operation in one of the world's most dynamic markets."
Sunil Kant Munjal, Chairman of Hero Corporate Service Ltd. added: "The partnership with Daimler Trucks is in pursuance of the Hero Group's long-term vision and strategy to have a diversified portfolio of high-growth businesses. We can benefit from Daimler Trucks' world class products and technology, and combine those with our own strengths to create winning products for Indian and other global customers."
The joint venture transaction is expected to close at the end of the first quarter 2008. Further details on the joint venture will then be announced.
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