Tata Group firm TRF acquires Dutch Lanka Trailer Manufacturers for $17 million
10 Jul 2009
Tata Group company TRF Ltd, (formerly Tata Robins Fraser) is acquiring Dutch Lanka Trailer Manufacturers Limited (DLT), a major manufacturer of trailers, for a total value of $17 million, in two phases.
Initially, TRF will acquire 51 per cent equity of DLT for $8.67 million. It would also sign a call and put option agreement for acquisition of balance 49 per cent of equity shares at a consideration of $8.33 million.
DLT has manufacturing facility in Sri Lanka. Dutch Lanka Engineering (Private) Limited, a 100-per cent subsidiary of DLT in Sri Lanka, is engaged in repairs, maintenance and service business for trailers.
DLT also has a subsidiary in Oman, which manufactures and sells trailers in the West Asian markets. DLT, at present, exports trailers to 30 countries. DLT, through its joint venture with Tata International Ltd in India, also manufactures and sells trailers in India.
TRF is planning five-fold expansion, focusing on material handling business, and has targeted Rs2,500-crore business by the year 2013.
TRF along with Tata Capital Ltd recently entered into a shareholder agreement with Jasper Industries Pvt Ltd to form a joint venture for automotive applications business. The JV,called `Adithya Automotive Applications Pvt Ltd' will provide end solutions through fabrications and machining for vehicles to be used as tippers, load bodies, trailers, refrigerated bodies, etc.
TRF, a pioneer in engineering and supply of material handling equipment and systems, also owns York Transport Equipment (Asia) Pte Limited in Singapore, which is engaged in the production and distribution of trailer undergears. The subsidiary has market presence in 27 countries and manufacturing bases in Singapore, Australia and India.