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Home arrow Mergers and Acquisitions arrow HV Transmissions and HV Axles to amalgamate and form TML Drivelines
HV Transmissions and HV Axles to amalgamate and form TML Drivelines Print E-mail
Written by Vijay   
Thursday, 17 February 2011
Mumbai: HV Transmissions (HVTL), engaged in manufacturing of gear boxes and gear-box parts, and HV Axles (HVAL), a manufacturer of axles and axle parts for medium and heavy commercial vehicle (M&HCV) segment, will soon amalgamate to become a total driveline solutions provider. The new entity will be renamed 'TML Drivelines'.

The facilities of the two companies are located in Tata Motors’s Jamshedpur plant complex, and they already function with a great degree of commonality. The new entity will operate with two business verticals, transmissions and axles, with common corporate functions.

The amalgamation will not result in any redundancy and the terms and conditions of employment will remain unchanged.

"With the pooling and more efficient utilisation of resources, the amalgamated company will emerge as a stronger company," the company said in a statement. The amalgamation will ensure complete harmony, optimal utilisation of resources and integrated R&D base to create new products to respond to emerging market opportunities.

The major customer of the two companies is Tata Motors.

During 2009-10, HVTL and HVAL reported a turnover of Rs209.84 crore and Rs240.15 crore respectively, and profit after tax (PAT) of Rs52.64 crore and Rs63.85 crore respectively. During the first nine months of 2010-11, HVTL and HVAL reported a turnover of Rs205.41 crore and Rs221.14 crore respectively, and PAT of Rs58.70 crore and Rs64.93 crore respectively.

The decision of the boards of both companies is subject to approvals of shareholders (Tata Motors and Tata Capital respectively hold 85 per cent and 15 per cent equity each in the two companies) and statutory approvals. The amalgamation will be effective from April 1, 2011.

 
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