Hinduja Group's flagship company Ashok Leyland [Get Quote] on Monday signed a master co-operation agreement (MCA) with Japanese auto major Nissan to set up three joint ventures for production of light commercial vehicles at a cost of $500 million. Under the MCA, one of the joint venture would be to manufacture LCVs, in which Ashok Leyland would have an equity stake of 51 per cent and the Nissan 49 per cent, Gopichand P Hinduja, President of the Hinduja Group and Carlos Ghosn, president, Nissan, said.
The location of the factory was yet to be decided but sites in Tamil Nadu, Uttarakand and Andhra Pradesh had been identified and a decision would be taken within few weeks, Ashok Leyland managing director R Seshasayee said.
Another joint venture to manufacture engines for the LCVs would be set up with Nissan contributing 51 per cent of the equity and the rest by Ashok Leyland, they said.
The third JV, in which both would have equal equity stake, for developing LCV products and related goods, would be set up at Chennai and the products developed at the company would be sold under Ashok Leyland and Nissan brand names, they added.
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