Nissan May Sue Ashok Leyland If JV Disputes Not Resolved
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Companies 5 The Economic Times, Mumbai, Saturday, 7 November 2015 * Former Cricketer Dilip Doshi to Nissan may Sue Ashok Leyland Bring 2 More Luxe Brands to India If JV Disputes Not Resolved Our Bureau Mumbai: After launching German lux- Legal counsellors have instructed top Nissan executives to preserve documents relating to the JV ury brand Mont Blanc in India, cricket- er-turned-businessman Dilip Doshi is ok Leyland’s factories, which also make now entering the affordable luxury seg- Bharani.Vaitheesvaran some engines for platforms developed by ment by bringing Italian designer silver- @timesgroup.com Alliance Hits a Rough Patch the joint venture. With variants Dost ware brand Greggio and German porce- Strong and the latest rigid front suspen- lain brand KAHLA to the country. Chennai: Japanese carmaker Nissan is Nissan may sue Ashok Leyland if parleys to sort out differences sion model, Leyland has seen some suc- Realty Co Prateek Doshi’s firm, Entrak International, preparing for a potential legal dispute over platform-sharing, design and manufacturing fail cess in the segment. In its 2014-15annual `. will be the exclusive distributor for with joint venture partner Ashok Ley- report, the company said 100,000 Dost Raises 135 cr from The eight-year alliance between Nissan Stake in Ashok Leyland `791 cr Greggio and KAHLA in India. When land if parleys to sort out differences and Ashok Leyland has hit a roadblock trucks ply in India. Indiabulls Housing asked about the details of the business over platform-sharing, design and man- Nissan Vehicles Net loss for The joint venture resides in three sepa- as the JV reported mounting losses and FY 2014-15 model, Doshi said: “It is a relationship of ufacturing fail, according to sources and missed achieving business milestones Leyland Nissan rate companies for vehicle manufactur- reported RaviTeja.Sharma exclusive distribution between a princi- internal communication accessed by ET. 51% 49% ing, engine manufacturing and technolo- pal and us being exclusive distributor.” Legal counsellors from Nissan Motor The developments The JV resides by Ashok gy development. In the flagship Ashok @timesgroup.com Founded in 1844, KAHLA has a pres- Co, Japan have instructed top executives will not have an in 3 separate Leyland Leyland Nissan Vehicles, Leyland has a ence in 60 countries across the home, ho- of Nissan Motor India to preserve docu- immediate effect cos for vehicle Nissan 51% stake and Nissan 49%. New Delhi: Real estate developer Vehicles tel and restaurant sectors. Greggio of- ments relating to the loss-making joint on the manufacture manufacturing, Ashok Leyland Nissan Vehicles reported Prateek group has raised `. 135 crore fers designer silverware and brings venture and avoid oral or email conversa- of Ashok Leyland’s engine a net loss of `. 791 crore for fiscal 2014-15. from Indiabulls Housing Finance Italian craftsmanship to various brand- tions with executives of Ashok Leyland, popular truck Dost, a manufacturing Ashok Leyland also wrote off `. 214 crore as Company for its project Prateek Wis- ed articles of use in home and office. the country’s second-largest maker of product of the joint and technology impairment based on the value of its in- teria in sector-77 of Noida, said two “The market for these kind of products trucks and buses. venture development vestment in the joint venture. The compa- people with knowledge of the matter. is enormous in India. Our target audi- “This strict policy is important because `214 crore ny took another impairment charge of The Noida-based company will use Ashok Leyland also wrote off `. ence is anybody with a good taste and a any communications with (Ashok Ley- as impairment based on the value of its 157 crore in the September quarter relat- part of the money to complete towers sense of aesthetics, who will enjoy these land) could be used as evidence in the po- investment in the joint venture ing to its JV with John Deere. “Some in- under construction and the rest to products,” Doshi said. tential dispute involving AL,” a Nissan vestments take off, some don’t,” Ashok pay for land among other purposes, To begin with, Entrak is setting up the counsellor said in an email to vertical Leyland’s Mahadevan said. said one of the persons. The project first store in South Mumbai which will heads in the company’s India unit, which business milestones. Ashok Leyland’s popular truck Dost, a In 2008, Ashok Leyland Nissan Vehicles has a total of 20 towers, of which house both brands. The store — Greggio ET has accessed. These steps were neces- Ashok Leyland chief financial officer product of the joint venture, sources signed a deal with the Tamil Nadu govern- about 15 have already been delivered & KAHLA — will open this week. “They sary to ensure Nissan had “access to evi- Gopal Mahadevan, when asked about the aware of the developments said, declin- ment to acquire 380 acres near Chennai to to homebuyers. An email question- are complementary products and it’s a dence needed to prove its case,” the coun- possibility of a legal dispute with Nis- ing to be identified. locate the joint venture factories. The naire sent to Indiabulls HFC did not synergy to have them together,” he said. sellor wrote. san, said it would be inappropriate for The engine that goes into Dost is manu- promise was a `. 4,000-crore cumulative in- elicit any response. A spokesman for Products of KAHLA and Greggio start at The eight-year alliance between Nissan him to comment in the absence of the factured at the factory Nissan set up in a vestment and a minimum of 4,000 jobs. Prateek group declined to comment. `. 600 and `. 2,500, respectively. and Ashok Leyland to make light goods company’s JV partner. joint venture with French carmaker Re- The joint venture employs in hundreds Several builders in NCR have been He plans to set up Greggio and KAHLA vehicles such as vans and small trucks Nissan declined to answer ET’s queries. nault — the plant of Renault Nissan Au- now, and the engines manufacture and as- looking to raise money to finish con- stores in malls and premium retail areas soured as the joint venture reported The developments will not have an im- tomotive India. It makes 6-8 engines a day, sembly are executed across Ashok Ley- struction or even repay other expen- in cities such as Delhi, Chennai, Benga- mounting losses and missed achieving mediate effect on the manufacture of which are assembled into trucks at Ash- land factories and Nissan’s Chennai unit. sive loans they might have taken. luru, Hyderabad and Pune. “We have the experience from Mont Blanc and our ex- perience has taught us a lot of things. We know where we should go and where we APPLE WATCH IN INDIA shouldn’t,” Doshi said. 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