Ashok Leyland, the flagship company of the London-based Hinduja Group, today said it has hiked its stake Optare Plc by acquiring an additional 49.1 per cent for over Rs30 crore, taking its total stake in the British bus maker to 75.1 per cent.

"Ashok Leyland...together with its associate companies will increase its stake in the British bus maker Optare plc to 75.1 per cent, thanks to a re-financing agreement announced today," the company said in a statement.

"The board of directors of the company at their meeting held today approved the proposal for making additional investment up to £40,04,495 in Optare Plc, UK," Ashok Leyland said.

"The re-financing has been achieved by Ashok Leyland facilitating a credit-line to support Optare's re-banking options and providing a substantially improved working capital facility for the business," it said.

Ashok Leyland chairman Dheeraj Hinduja said, "We are confident that, together, we can surge ahead with Optare, taking advantage of the large opportunities for growth and development we see based on synergy and integration with Ashok Leyland's bus business."

In July last year, Ashok Leyland acquired a 26-per cent stake in Optare, and nominated two nominees on Optare' board. (See: Ashok Leyland to acquire 26-% stake in UK bus maker Optare)

The investment by Ashok Leyland was made to accelerate technology, new product development and to address new markets, the infian truck maker said in a statement.

Founded in 1985 by former employees of Leyland, Optare makes weight optimised 'Low Carbon' range of mid-sized, low-floor buses as well as a modern range of city buses andis a pioneer of the low-floor double-deckers in the UK.

The company has plants in Blackburn and Leeds with a combined annual production capacity of 1,100 units and holds a 34-per cent market share in the UK. Its new electric bus has already secured several orders as more countries in Europe promote cleaner, greener mobility.

Ashok Leyland has been expanding its bus business with purpose built bus-plants in Alwar in India and Ras Al Khaimah in the United Arab Emirates, and a new range of both city buses and inter-city coaches. It has expanded its foundations to address growing needs for modern urban mobility in India as well as several international markets.