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| Edited By: Yuga Chaudhari |Source: DNA |Updated: Mar 30, 2018, 04:17 AM IST
Germany-based Man Truck and Bus might look at setting up separate operations as Pune-based commercial vehicle manufacturer Force Motors is selling its stake in their joint venture company Man Force Trucks Pvt Ltd for €150 million (Rs1,053 crore).
According to Force Motors’ annual report, as on March 31, 2010, the joint venture company suffered a loss of as much as Rs268 crore. Abhay Firodia, chairman of Force Motors, said: “A part of stake still remains with us, but eventually the shares will be transferred to Man Truck. The company will now look into its India operations independently, which was handled by Force Motors previously.”
The 50:50 joint venture sold 3,160 trucks in the country last fiscal and exported 809. So far, it has sold 10,000 vehicles, including exports.
Force Motors started Man Force Trucks in 2003 to manufacture heavy commercial vehicles. In 2006, the entity was converted into a JV, 30% held by Man Trucks. Later, in 2008, the equity portion was adjusted to increase Man shareholding to 50%.
Man Force has a manufacturing facility at Pithampur, Madhya Pradesh. The trucks are exported to countries such as Sri Lanka, Indonesia, and certain African nations.
According to the company’s statement, both Force Motors and Man will continue to co-operate based on the new contractual
arrangement.
Firodia, however, did not clarify on the new contractual agreement forged.
