Trilegal, Khaitan act on PSA Group’s third-time Indian entry

French automative manufacturer PSA Group, known for Peugeot and Citroen brands, has signed two Joint Venture (JV) Agreements with conglomerate CK Birla Group to manufacture cars and power trains in India..The first JV, for manufacturing cars, is between PSA group and Hindustan Motors Finance Corporation with PSA holding majority stake and the second JV, for making engines and gear boxes, is between PSA group and AVTEC with each having 50% stake..DealPSA Group enters into two JV agreements with CK Birla Group companiesValue NADeal TypeJoint VentureSectorAutomobileLaw FirmsKhaitan & Co– CK Birla Group; Trilegal– PSA GroupPartners/ HeadsKhaitan & Co- Bharat Anand; Trilegal- Yogesh Singh..Trilegal advised PSA Group with a team led by Partner Yogesh Singh supported by Counsel, Ramakant Rai, Senior Associate, Sarvesh Saluja and Associate, Nimisha Mund..CK Birla Group was represented by Khaitan & Co, with a team led by Partner Bharat Anand..As per Forbes, this is PSA Group’s third attempt at trying to establish a presence in India; first time being a tie-up with Premier Automobiles in the mid nineties following the opening up of the economy in 1991 but PSA had to exit the JV as it suffered huge losses and; second time in 2011 when PSA tried to set up a manufacturing unit independently but failed due to financial woes..The manufacturing units for both the JV companies will be based in Tamil Nadu with a target of 1,00,000 vehicles per year.