chennai merger of autocomponents maker hinduja foundries with hinduja group flagship company ashok leyland is a pragmatic decision a top company official said here the boards of hinduja foundries and ashok leyland yesterday approved the proposal of amalgamating hinduja foundries subject to regulatory and shareholders approval of both the companies i would say it the move to merge as a pragmatic move than being optimistic ashok leyland chief financial officer gopal mahadevan told reporters here elaborating on the financials he said that 100 shares of rs 10 each of hinduja foundries will get 40 shares of rs 1 each fully paid of ashok leyland ltd giving out reasons of the merger mahadevan said hinduja foundries is very very critical supplier for ashok leyland and almost constitutes onethird of revenue ashok leyland has preference capital of rs 321 crore in hinduja foundries hinduja foundries is loss making and both companies ashok leyland are largely associated the best way to do that is to merge he said noting that the governance body in hinduja foundries would continue to maintain the independence of hfl he said in addition to the new team management at hinduja foundries ltd they will have access to larger pool of talent capability including supply chain all of this will start translating into benefit i think the capital expenditure and the debt route taken by hinduja foundries had its impact on financial losses he said to a query pointing out that the proposed amalgamation would begin by october 1 2016 he said post merger the promoters holding in hinduja foundries will increase by 1 per cent we want to grow this business yes the employees of hinduja foundries will be on payroll of ashok leyland he said adding hinduja foundries would become a division of ashok leyland asked whether the company had planned to sell hinduja foundries mahadevan said they looked at all angles before the merger hinduja foundries has two manufacturing facilities at ennore and sriperumbudur operating at 65 per cent capacity pti published on sep 16 2016 at 0129 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app ashok leyland hinduja foundries ma business growth ashok leyland limited gopal mahadevan homenewsindustrymerger of hinduja foundries pragmatic ashok leyland cfo