Indian based Hinduja Group and the Government of Uganda yesterday entered an understanding to set up Commercial Production of Trucks and Buses in Uganda through a Joint Venture, called the Kiira Ashok Leyland. Ashok Leyland, a member of the Hinduja Group, is an Automotive Manufacturing Company based in Chennai, India specializing in the manufacture of Buses and Trucks. Ashok Leyland shall be the implementing entity of the Hinduja Group in the Kiira Ashok Leyland Joint Venture.
Uganda Development Corporation (UDC) is an entity wholly-owned by the Government of Uganda as its investment and development arm under the Ministry of Trade Industry and Cooperatives. UDC shall be the implementing entity of the Government of Uganda for purposes of the Kiira Ashok Leyland Joint Venture. The Hinduja Group was represented by The Group President Mr. Rakeshh Gupta accompanied by H.E. Prof Joyce Kikafunda the Uganda High Commissioner to UK.
On 7th May 2014, at a meeting with H.E. the a President of the Republic of Uganda in London, GoU represented by the Minister of Foreign Affairs and the Ministry of Works and, Hinduja Group represented by Amas Investment & Project Services Limited, both parties entered a mutual understanding to explore avenues for possible investment in the Republic of Uganda. Investments included fields of Business Process Outsourcing & Customer Care Services, Automotive Sector with focus on Commercial Vehicles and Agriculture & Farm Products.
At a follow-up meeting on 21st October 2014 in London, the Chairman of Hinduja Group presented a proposal to H.E. the President of Uganda for the development of a long term relationship with the Government of the Republic of Uganda for the establishment of a Truck and Bus Manufacturing Plant in Uganda. Hinduja Group’s proposed Joint Venture was latter benchmarked against the Lanka Ashok Leyland JV with the Government of Sri Lanka and the AL JV with Ras Al Khaimah in UAE before the final decision was made with the Hinduja Group.
This deal has obviously been sparked off with the recent support of the government in technological innovations after the Kiira EV SMACK EV excited the nation.
