Ashok Leyland Sells US Subsidiary to Exova

Ashok Leyland, the flagship company of Hinduja Group, has announced the sale of its US-based subsidiary Defiance Testing and Engineering Services (DTE) to Exova for undisclosed sum. DTE is located near Detroit, USA. The company was acquired by Ashok Leyland in April 2007, which held 100% stake. However, DTEs separate entity, Defiance Technologies, which deals in information technologies and engineering services, would remain unaffected by this deal.

DTE offers testing and engineering services to manufacturers and leading suppliers of passenger cars, light trucks, buses and military vehicles. The company has various capabilities, which include component and system testing, fatigue and durability validation, system simulation and full vehicle structural testing.

Exova is one of the world’s leading dedicated testing groups which offers services in the areas of materials and structures, calibration and metrology, chemistry, coatings, composites, corrosion, fire safety, metal technology, microbiology, polymers and structures and systems. 

Since its acquisition, DTE has helped Ashok Leyland with several new skills and validation, and has thus reduced the product development time and cost.

Ashok Leyland’s current debt stands at Rs 3505 crore, and it is looking to trim this figure through this transaction. The stock price of the company went down by 1% after the announcement of this deal.