Tripartite JV for bus body building

By Our Special Correspondent

CHENNAI, FEB. 5. Truck major Ashok Leyland and Sundaram Industries of the TVS group have joined hands with Irizar of Spain to float a three-way equal partnership to make bus bodies in India.

Christened Irizar TVS, the new venture will have an initial capital base of Rs. 75 lakhs.

Following the tripartite joint venture, the assets of Viralimalai and Pudukotai bus body facilities of TVS Coach will be leased to Irizar TVS. The lease is for a eight-year period. It is likely that the assets will be transferred to the new company over a period.

Sundaram Industries is expected to loan its employees to the new company.

The joint venture will be a preferred supplier to Ashok Leyland. However, it will also build bodies for other automobile manufacturers.

The joint venture, according to Mr. R. Seshasayee, Managing Director of Ashok Leyland, will result in technological upgradation of product offerings from the company.

The bus market is estimated in the range of 25,000 and is seen to be growing at a slow pace of 3-5 per cent. This year, however, the growth has been in the region of five per cent.

Mr. Seshasayee feels the market has been witnessing a change. For one, there is a perceptible demand for longer-serving vehicles. For another, safety and emission have come to occupy centre- stage. To cap it all, ride comforts are increasingly sought after. ``We are going towards higher standards in all these areas,'' says he.

Consequently, both chassis makers and body builders have come under increasing pressure and responsibility. The joint venture, he hopes, ``will herald a new era in bus body building.''

In the wake of formation of joint venture, the Viralimalai facility will now concentrate on body building for luxury and inter-city buses, according to Mr. R. Dinesh, Executive Director of T. V. Sundaram Iyengar & Sons. The Podukotai unit will focus on making bodies for intra-city buses.

Irizar will provide technology that will facilitate the new company to introduce in the Indian market Inter Century model coaches which were highly successful in Europe.

Send this article to Friends by E-Mail

Section  : Business
Previous : A surcharge to give Rs. 6,000 cr. for relief?
Next     : Textile mills clarify