The country's second largest CV maker, Ashok Leyland has announced that it has got approval from the National Company Law Tribunal (NCLT), Chennai for merging its light commercial vehicle businesses with itself.
Earlier this year, Ashok Leyland had decided to merge its light commercial vehicle subsidiaries -- Ashok Leyland Vehicles, Ashok Leyland Technologies and Ashley Powertrain -- with itself to consolidate its LCV businesses and facilitate focused growth, achieve operational efficiency, integrate synergies and enable better supervision of the businesses.
In 2016, the company had completely acquired the stake from its erstwhile JV partner Nissan. The former JV saw Ashok Leyland procure a 51 percent stake in Ashok Leyland Vehicles and Ashley Powertrain, while it had 50 percent stake in Ashok Leyland Technologies.
With the company getting approval from NCLT, consolidating all the three businesses will enable better productive and improved utilisation of resources, along with bringing down cost and improving operating efficiencies.