Commercial vehicle maker, Ashok Leyland, has invested $13.79 million (around Rs 80 crore) in its subsidiary Albonair GmbH. It may be noted that Albonair is one of the subsidiary companies in which Ashok Leyland is planning to dilute stake as part of its efforts to dilute its non-core assets.
According to the Reserve Bank of India (RBI)'s outward FDI from India data for the month of May 2013, Ashok Leyland has infused $13.37 million as equity and $0.43 million as loan into Albonair.
Albonair, specialised in the development and production of exhaust aftertreatment systems, has recently opened a new production line for Euro-VI dosing systems at Dortmund, Germany.
V Sumantran, executive vice-chairman of Hinduja Automotive and chairman of Albonair, has recently said in a statement that Albonair had been strategically positioned to address the growing global need for environment-friendly technologies and solutions.
Attempts to reach the senior official for further details on the investment couldn't yield results.
In addition to the Dortmund headquarters, Albonair is represented by a production site in Chennai, and has two further subsidiaries in Shanghai and Detroit.
In its facility with the new production line, the company will be manufacturing dosing systems in the semi-automatic production line which a major European manufacturer of commercial vehicles will install into its Euro-VI vehicles.
"Due to the increasing production volumes that we are facing this year, we have put the new hall and simultaneously the new production line into operation.
With this expansion, our annual capacity reaches 200,000 dosing systems," said Rene Rüdinger, one of the managing directors of Albonar.It may be noted that Ashok Leyland had earlier said that it was planning to dilute its non-crore assets, which will help the company reduce its debt. The company was planning to raise around Rs 500 crore.
