Hero pulls out commercial JV with Daimler
PTI reported that Hero Group has pulled out of its joint venture with the world's largest commercial vehicle maker Daimler to produce trucks in India due to the economic slowdown.
Mr Sunil Kant Munjal Hero Corporate Services Chairman told PTI that "We are disengaging from the joint venture, but the company (joint venture) will continue to exist and run by Daimler. The reason for it is the current economic slowdown and we would not like to commit such big investment in the circumstances."
He added that Hero Group would like to maintain a conservative profile.
As per report last year the two companies agreed to form a JV in which the German firm was to have a 60% stake and the Hero Group the rest. The partners had announced an investment of INR 4,400 crore for the purpose, including setting up a manufacturing plant in Chennai.
While Daimler was supposed to put in INR 1,368 crore, Hero was to pump in INR 900 crore in the JV.
(Source : PTI)
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