Sumantran steps down from Optare board

V Sumantran, executive vice-chairman, Hinduja Automotive, has stepped down from the board of Optare Plc, a UK-headquartered bus manufacturer in which Ashok Leyland acquired 26 per cent stake in July last year for $7.5 million (around Rs 28 crore). After this, early this year Optare has raised £7.4 million of investment via an equity placement.

Ashok Leyland officials were not available for comment. According to sources Sumantran, one of the two members representing Ashok Leyland, was replaced by Venkatesan Venkataraman as a non-executive director with immediate effect.

Venkataraman is currently president of business development and strategy for Hinduja Automotive Ltd in the UK. He was instrumental in negotiations with Optare where he continues, on behalf of Ashok Leyland, to oversee the strategic co-operation initiatives.

Optare was expected to benefit Hinduja Automotive by allowing it to participate in the growth of the European bus market, through access to its products and technology, and through joint development of products and intellectual property. However, with the European economy remaining sluggish, Optare has not made profits.

Ashok Leyland was issued fresh shares for its 26 per cent stake. The other 74 per cent is owned by investors and Ashok Leyland will be given preference should they intend to offload their stake. Asked if Ashok Leyland plans to bring the buses into India, Sumantran said, “definitely yes,” but observed that it would take time.