Ashok Leyland to make capex of Rs 1,000 cr

Backed by a strong performance for the year 2010-11, heavy vehicle manufacturer Ashok Leyland would make capital expenditure of Rs 800-1,000 crore this year, a top company official said here today.

"We will be making investments of Rs 800-1,000 crore this year... It will be funded partly for Ashok Leyland and for its joint venture companies," Ashok Leyland managing director Vinod K Dasari said on his maiden annual press conference.

He said 50% of the capex would be utilised for its initiatives including for developing the Neptune engine platform, U-Truck platform while another 50% would be utilised for the joint venture firms.

Ashok Leyland currently has joint venture with the world's largest construction equipment manufacturer John Deere to manufacture construction equipment and also with Japanese auto-maker Nissan to manufacture light commercial vehicles.

Ashok Leyland CFO K Sridharan later said the funds would be partly raised through "internal accruels" and by "raising funds".

Besides the company has also planned to foray into newer markets including Saarc, African countries and in the CIS (Commonwealth of Independent States) countries, Dasari said.

Commenting about their results he said the company has managed to increase its market share by 2.4% (in 2010-11) to reach 26% in the medium and heavy commercial Vehicle segment.

On the outlook for the year (2011-12), he said 2011-12 is going to be a year of growth and consolidation for Ashok Leyland in quest to the vision of being in the top 10 in trucks and top five in buses.

"The launch of 'Dost' from the Ashok Leyland-Nissan stable will make the company a full range of commercial vehicle player," he said.