Nissan-Ashok Leyland tech JV moves BIFR

By: | Published: November 18, 2015 12:25 AM

Nissan Ashok Leyland Technologies (NALT) — a 50:50 joint venture between Nissan of Japan and Hinduja group flagship Ashok Leyland — has moved the Bureau of Industrial and Financial Reconstruction (BIFR) due to financial constraints.

Nissan Ashok Leyland Technologies (NALT) — a 50:50 joint venture between Nissan of Japan and Hinduja group flagship Ashok Leyland — has moved the Bureau of Industrial and Financial Reconstruction (BIFR) due to financial constraints.

According to the document filed with BIFR, the company, which, as per Form A, employed 57 workers, was established on May 22, 2008, and owns a factory in Kanchipuram district. Its audited balance sheet for the fiscal ended March 31, 2014, showed its net worth as Rs 52.05 crore consisting of paid up share capital Rs 52.05 crore. The entire networth has been fully eroded due to accumulated losses, which stood at Rs 172.37 crore. Investment in plant and machinery was Rs 9.29 crore, the BIFR document said.

Nissan India’s spokesperson said it is as per Indian regulatory processes and “we have given time till February 22 to respond to BIFR’s contention”. “We don’t see any impact owing to this on our (partners) plans,” the official added. NALT is one of the three joint ventures where both Nissan and Ashok Leyland signed way back in 2008. It may be recalled that in 2008, the Hinduja group flagship and Nissan Motor Company of Japan announced three JV firms — for light commercial vehicles business, powertrain manufacturing and technology development. The three include Ashok Leyland Nissan Vehicles Private, the vehicle manufacturing company in which Ashok Leyland has 51% and Nissan has 49%. Nissan Ashok Leyland Powertrain Private, owned 51% by Nissan and 49% by Ashok Leyland and Nissan Ashok Leyland Technologies Private, the technology development company owned 50:50 by both.

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