TRF acquires Dutch Lanka

TRF Ltd., a Tata enterprise, has signed an agreement to acquire Dutch Lanka Trailer Manufacturers Ltd. (DLT). In the first phase, TRF will acquire 51 per cent of equity shares at a consideration of $8.67 million. It would also sign a call & put option agreement for acquisition of the balance 49 per cent of equity shares at a consideration of $8.33 million.

DLT has manufacturing facility in Sri Lanka and sells trailers in as many as 30 countries. Dutch Lanka Engineering (Private) Ltd., 100 per cent subsidiary of DLT in Sri Lanka, is engaged in repairs, maintenance and service business for trailers. DLT also has a subsidiary in Oman which manufactures and sells trailers in the West Asian markets.

DLT, at present, exports trailers to 30 countries. Through its joint venture with Tata International Ltd. in India, it also manufactures and sells trailers.

TRF plans to grow rapidly, five times in five years, and become a Rs. 2,500-crore company by 2013, by enhancing focus on material handling business and entering new businesses. Recently, TRF entered in to a shareholders agreement, along with Tata Capital Ltd and Jasper Industries Pvt. Ltd., to form a joint venture, Adithya Automotive Applications Pvt. Ltd., with the main objects of engaging in the business of automotive applications to provide end solutions through fabrications and machining for vehicles to be used as tippers, load bodies, trailers, refrigerated bodies, etc.

In June, 2009, TRF Ltd. turned a new page in its history by recommending issue of bonus shares in the ratio of 1:1. A pioneer in engineering and supply of material handling equipment and systems for five decades, the company also owns a subsidiary, York Transport Equipment (Asia) Pte Ltd., Singapore, which is engaged in production and distribution of trailer undergears, with market presence in 27 countries and manufacturing base in Singapore and Australia, and India from April 2009.