ADV to buy heavy vehicles unit from India's Tata

According to a regulatory filing, the transaction will see ADV purchase 100% stakes in both DLT, which is valued at INR300 million, and Tata International DLT (TIDLT), a joint venture between Tata and DLT that is valued at INR2.75 billion. DLT's other subsidiaries, including its service facilities in Sri Lanka and Oman, are included in the overall price.

Established in 1992 and acquired by Tata in 2009, DLT manufactures a wide range of trailers for ports and for road transport, with a capacity of 3,500 trailers per year at its factory in Sri Lanka. The company exports to more than 45 countries; it is strongest in the Middle East, claiming a 30% market share for port trailers, and Sri Lanka and Bangladesh, where it is responsible for 65% of road trailer sales.

Tata reported DLT's revenue for the 12 months ended March 2018 at INR532 million, down from INR550 million the year before. Over the same period, profit before tax grew from INR48.3 million to INR81.9 million, which the company attributed to improved performance from TIDLT.

TIDLT launched in 2005 to focus exclusively on the Indian market. It has a factory in Pune with a capacity of over 4,000 trailers per year. Revenue for TIDLT came to INR3.55 billion for the year ended March 2018, up from INR1.9 billion in 2017, while profit before tax rose from INR32.6 million to INR221 million over the same period.

ADV is currently investing its debut Asia fund, which closed at $545 million in 2015; a successor vehicle is currently in the market. The firm operates across the region, but China and India are its key markets. Commitments in India include hospital chain Dr. Agarwal's Healthcare and infrastructure project advisory firm Feedback Infra.

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• Topics
• South Asia
• Industrials
• Buyouts
• India
• ADV Partners
• manufacturing