Medium and heavy truck makers Asia Motor Works (AMW) has put on hold its Rs 550 crore fund-raising plans in view of the prevailing adverse market environment.
“We planned $100-million fund-raising through private equity or debt 6-8 months back for our expansion plans,” Anirudh Bhuwalka, managing director & CEO, Asia Motor Works told Hindustan Times. “The situation has turned bad since then and we are holding back our plans till it improves.”
What prompted AMW to go slow on its expansion plans is a 20% drop in the medium and heavy truck market, which is bearing the brunt of sluggish industrial activity, which brought down valuations and makes offloading of stakes unattractive, according to Bhuwalka.
AMW, which saw 50% surge in sales last financial year at 9002 units, sees sales decelerating in April-June 2012. The company, which holds 27% market share in tippers, last year entered haulage truck market.
The company has developed specialised trucks for the defence sector and will participate in upcoming bids. “We got two three request for quotations,” said Bhuwalka. AMW’s intercity coaches are likely to be out this fiscal.