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Journalism of Courage
Greaves Ltd has divested its entire stake in both the joint venture Companies — SAME Greaves Ltd (SGL) and SAME Greaves Tractors Ltd (SGTL) — to SAME Deutz-Fahr Group SpA, Italy (a SAME Group Company). The Company was holding 49 per cent of equity stake in SGL and 50 per cent in SGTL.
The entire deal has now been concluded, according to a company notification to the Stock Exchange, Mumbai. Both the joint venture companies had been facing recessionary pressures on account of the slowdown in the tractor industry. The company, in its annual report, mentioned that the scenario was not likely to change significantly for the next couple of years. Besides, the continuation of these ventures would have necessitated additional funding by the company which in view of the company’s own current financial position, was not feasible, according to the company’s annual report.
The directors therefore considered it prudent to exit from both these JVs, according to the company. SGL is engaged in manufacturing world-class engines.
