Promoted as a joint venture by the Kalyani group and Rockwell International Corporation, US, (35.52% stake) in 1981, Automotive Axles manufactures all types of complete axles and axle assemblies including components and corresponding brake sets. It also manufactures automotive gears and air- and hydraulic-activated brake assemblies. The company's Rs 30.3-cr project at Hootagali near Mysore, commenced commercial production in Jul.'84. The company entered the capital market with a public issue._x000D_ _x000D_ It came out of the purview of the Sick Industrial Companies Act, 1985. But, the very next year, its networth started to erode. So, in 1994-95, it embarked on a restructuring of the capital in consultation with financial institutions. The company came out with a rights issue in Feb.'95 to part-finance an expansion project to increase the manufacturing capacity of axles and brakes._x000D_ _x000D_ During 1996-97, the expansion of Axles capacity has been completed and of brakes was put on hold in view of down turn in the market._x000D_ _x000D_ The company managed to achieve an impressive 20% growth in sales during the year 1999-2000. As the company is continuing to pursue its efforts on increasing penetration into other domestic and export market opportunities, Meritor HVS (India) Ltd has tied-up technical licensing arrangement for new products for Ashok Leyland and Volvo India Ltd., and already export business worth US $ 4 Million has been achieved._x000D_