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| Ashok Leyland to invest Rs 2,000 cr |
| BS Reporter / Chennai Jul 30, 2010, 00:27 IST |
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Commercial vehicle major Ashok Leyland is planning to invest around Rs 2,000 crore over the next two years, both in its existing plants and in joint ventures. The company has received its shareholders' approval to raise Rs 700 crore debt. Besides, the company also said it is planning to start manufacturing trucks from its plant in United Arab Emirates to cater African markets.
R Seshasayee, managing director, Ashok Leyland, said that in 2009-10 the company’s capital expenditure was Rs 810 crore and Rs 142 crore was invested in joint ventures. “Over the next two years, we will invest Rs 1,200 crore for modernising company’s plants and creating additional infrastructure. Another Rs 800 crore will be invested in the joint ventures.”
R J Shahaney, chairman, Ashok Leyland said that the joint venture, with Nissan Motor Company, that will make Ashok Leyland a full range player, is well on course. The first products of the joint venture is expected to roll out by mid 2011 from the existing Hosur plant and company will then be competing in one of the most robustly growing segments in the commercial vehicle industry.
He added, the company is also in the process of acquiring land for setting up of the green field facility for the project.
Company’s joint venture with John Deere, for construction equipment business, is also very much on schedule. Pilot production at the Gummidipoondi, near Chennai, will start towards end of this year and the first product – the backhoe leader – will hit the Indian market by early 2011, he added. The integrated facility at Ras Al-Khaimah, United Arab Emirates, has already started production of buses with an annual capacity of 2,000 buses.
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