Kamaz eyes stake in Indian truck maker
The Indian subsidiary of Russia’s Kamaz Motors is looking to acquire a minority stake in privately-held Indian truck maker Asia MotorWorks Ltd (AMW), Kamaz India Director Alexey Agibalov told TASS on Jan. 15.
AMW, which has almost $200 million in debt, has been in talks with Kamaz for almost a year.
Agibalov said the acquisition of the Gujarat-based truck maker would help Kamaz increase production in India.
Kamaz entered the Indian market in 2009 via a joint venture with Britain’s Vectra Group. It bought out Vectra’s stake in 2014. It has sold around 1000 trucks in India since 2010 and looks to make India a base to expand operations into Southeast Asia.
If the Russian truck maker manages to buy a stake in AMW, it would be the first deal of its kind in the industry in India.
A source close to Kamaz told RIR that the deal is likely to be finalized by the end of the month. The valuation is still being sorted out, the source added.