Ashok Leyland to go for brand revamp, acquisition

Commercial vehicle major and Hinduja group company Ashok Leyland has said that it would go for a brand revamp as part of a three-point strategy that also includes focusing on quality and people. It has set a target for itself to be one of the top 10 players in truck segment and top five in the bus segment in the next 5-10 years.

The company, which is set to cross a revenue of Rs 11,000 crore for the first time in this fiscal, has also lined up investments to the tune of Rs 800 crore and is scouting for acquisition opportunities to expand its global foot print.

Vinod K Dasari, who took over as Ashok Leyland's managing director on April 1, 2011 said: “My vision to make the company one of the top 10 players in trucks and top five in bus segment over the next 5-10 years in terms of volume.”

The company plans to double its capacity in truck segment from the current level of 150,000 units. The company which has sold 94,100 units, has set a target to sell 110,000-120,000 units for 2011-12.

R&D would be the other focus area, said Dasari. Of the Rs 800 crore capex, Rs 200 crore would go on R&D. He noted that two years back, its investment in R&D was Rs 90 crore.

The other proposed investments include Rs 200 crore for research and development, Rs 50 crore to increase capacity at Alwar plant and Rs 200-300 crore in Pantnagar plant for back-end, for adding another frame line and for others, he added.

The company has set a target of Rs 11,000-12,000 crore of revenue in 2011-12 as compared to Rs 7,315.16 crore in 2009-10.

On the new launches, Dasari said the company will be bringing Avia platform to India in the next one year. While the cabin will be from Avia, which Ashok Leyland acquired in 2006, other drivelines including engine box, gear box, suspension and others will be from Ashok Leyland. The Czech company has a truck range of 6-12 tonnes and, depending upon the gross combination weight, with a drawer trailer it can go up to 22 tonnes.

The products of Avia can be classified as intermediate commercial vehicles (ICVs), which are typically between 7.5 tonnes and 12 tonnes. “We are planning to introduce 6-12 tonne range for the Indian market,” said Dasari.