Lemmerz Picks Major Stake In Jv With Kalyani
Global major Hayes Lemmerz International (HLI), supplier of wheels and brake components, has acquired majority control in its Indian joint venture by buying out most of the Kalyani group's holding.
Hayes' stake has now risen to 85 per cent from 25 per cent in Kalyani Lemmerz India, while Kalyani group's stake has dropped to 15 per cent.
"This acquisition serves to strengthen our presence in the fast-growing Indian vehicle market and also expands our network of manufacturing facilities and enables us to follow our customers around the globe," said Klaus Jinger, president Hayes' European fabricated wheel business.
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Kalyani Lemmerz's plant located in Chakan near Pune has an annual installed capacity of 450,000 steel wheels for heavy and other vehicles, said a Hayes release.
The company is enhancing this to one million steel wheels. Truck major Telco is one of its principal customers.
"This transaction builds on the excellent relationship that we have had with Hayes Lemmerz since 1992. We look forward to continuing to work with the team," said B N Kalyani, chairman and managing director of Bharat Forge, the Kalyani group flagship.
HLI's forte lies in design, engineering and manufacture of steel and aluminium wheels and brake drums and rotors for the automotive and commercial highway markets, the release added.