August 21, 2006 (LBO) – Sri Lanka’s Dutch Lanka Trailers has stepped up investments plans in India following a 2 million dollar equity injection through private investors last week. The privately held firm does not disclose its financials, but said sales and profits over the past 3-years have shown a compound average growth of 45 percent and 34 percent respectively. The firm’s Indian investment will be channeled through Tata International to make a wide range of trailers for Tata Motors Ltd.
Both firms have an equal equity stake and the joint venture hopes to ride on Tata Motors dominance in India’s bus and truck market.
Dutch Lanka’s Kelaniya plant currently makes a range of trailers, with overseas buyers accounting for around 60 percent of total sales each year.
The company’s expansion drive got a boost last week, when global private equity investment firm Aureos Capital, and local investor Dr. Siva Selliah pumped in 1.3 million dollars and 700,000 dollars respectively through a private placement.
Dutch Lanka plans to spend around a million dollars each to scale up their Sri Lankan plant and set up a production line in Pune, India.
Locally, Dutch Lanka mak