No Us Duty On Elastic Rubber
No Us Duty On Elastic Rubber
Hella Hueck KG, the 4-billion DM German auto component major, is taking over the management control of its joint venture in India _ JMA Industries Ltd _ by hiking its equity stake in the venture from the current level of 26 per cent to 51 per cent. The equity increase will be done through a preferential rights issue.
JMA, promoted by D R Sondhi and Ranjit Bhandari, is a leading supplier of automotive lighting and signalling equipment to major automobile manufactures in India. It has been an OEM supplier to commercial vehicle majors including Telco, Mahindra & Mahindra, Bajaj and passenger car major Maruti Udyog Ltd.
Hella will be acquiring the preferential rights shares at a price of Rs 27.30 per share against the ruling scrip price of JMAI about Rs 15-17.
The proposal regarding Hella's plans to acquire the majority control in JMAI was approved by the shareholders of the JV at an extra-ordinary general meeting (EGM) held here yesterday.
W W J Uhlenbruch, deputy chairman and chief executive officer of Hella Asia-Pacific, informed that the equity increase in JMA is part of the German company's plans to make its joint venture a major sourcing centre for the parent company's requirements for the replacement market.
He said once the German company takes over management control of JMAI, the venture will be re-christened Hella India Lighting Ltd. There is, however, no plan to change the present management team, he said.
He said Hella would be bringing in additional finances for technology upgradation and capacity expansion in its Indian subsidiary. He, however, refused to divulge the details of its investment plans in India. ta name="description" content="The refusal of the government and financial institutions to bail out Essar Steel Ltd has been viewed positively by the international investor community.">