Eicher to decide ally at Monday meet

Eicher Motors, which has been on the look out for alliances in the commercial vehicle (CV) space, will hold a board meeting on Monday to discuss a proposal for the same.

The Eicher management, however, refused to disclose the name of the company.

"The proposal is for a strategic partnership for commercial vehicles as well as an allied business," an Eicher said in a release to the Bombay Stock Exchange.

Sources indicate that Swedish bus major Volvo is presently holding talks with the company. Mahindra International, Renault and Daimler are also learned to be in the race.

When contacted, the Eicher Motors spokesperson said, "I cannot comment on any of the names floating around for the alliance. We will come to a conclusion only after our board meeting is held. We will be in a position to make an announcement then."

Top company officials from the Delhi-based company had earlier said that it would be unlikely that Eicher would divest a majority stake, but may consider a minority stake sale.

The company is looking to create a brand name for itself in the local market. The Lal family, the lead promoters of the company, currently hold 61 per cent.

Eicher had first expressed interest in forging alliance in July this year or a strategic partnership to become a full-range CV player. The company, which makes light and medium weight trucks, wants to get into the heavy truck segment as has seen good growth in recent months.

The company had earlier agreed to hold talks with various key international and domestic players to further the CV foray plans.

Eicher, which is India's third largest commercial vehicle manufacturer, generated revenues of nearly Rs 2,000 crore last financial year and aims to grab a large chunk of the Rs 30,000-crore heavy truck market, a preserve of Tata Motors and Ashok Leyland.

Buzz about the talks pushed the Eicher stock 8.22 per cent up to close at Rs 545.45 on the Bombay Stock Exchange today.

LOOING FOR A BIGGER PIE

The Lal family-owned Delhi-based company may consider a minority stake sale

By joining hands with a partner, Eicher is trying to become a full-range CV player

Eicher, India's third largest commercial vehicle manufacturer, generated Rs 2,000 crore revenue last financial year