Thai firm to buy 26% stake in Cebbco

Thailand-based CTV Doll is in advanced stages of negotiations for picking up 26 per cent stake in Jabalpur-based trailer manufacturing company Commercial Engineers and Body Builders Company (Cebbco).

CTV Doll, a joint venture company between Thailand-based Khon Kaen Cho Thavee and German firm Emil Doll, is engaged in manufacturing of truck bodies and trailers.

Confirming the development, Cebbco CEO Ajay Gupta said the CTV Doll has evinced its interest in buying equity stake but nothing has been finalised. However, he did not disclose financial details for the equity participation.

"Buying stake will supplement Cebbco's trailer making capabilities with CTV's design technology and pay load capacity," Gupta said. He also hinted that the company is also planning to tap capital market with an IPO in 2008.

Meanwhile, Cebbco has formed a joint venture with CTV Doll for manufacturing light weight and high pay load capacity trailers for Indian and export requirements.

The joint venture has agreed to export 150 trailers a month to the Asian region and increase to 500 trailers for the domestic market in its newly constructed facilities at Jabalpur.

"The idea is to produce light weight traliers with at least 25 per cent more pay load capacity against current 40 tonne capacity. Due to the light weight, the average kilo metre per litre of petrol will also get improved in our trailers," Gupta said.