Ashok Leyland inks agreement with Israel's Elbit Systems

Hinduja Group flagship firm Ashok Leyland Wednesday said it has inked a pact with Israel's Elbit Systems.

As part of this agreement, Ashok Leyland will provide high mobility vehicles (HMV) for mounting Elbit Systems' artillery guns and systems.

The integrated systems are targeted for worldwide export markets, Ashok Leyland said in a statement.

The Chennai-based firm has expertise in design, manufacturing of logistic vehicles, combat support HMV and armoured vehicles for the defence forces.

"We are certain this partnership will expand our reach globally. It underlines our capabilities of making and designing in India, for the world," Ashok Leyland MD Vinod K Dasari said.

This step is also in line with the company's strategy of increasing contribution from defence business, which will help it de-risk its overall business, he added.

Elbit Systems is engaged globally in a range of defence areas, including land systems, artillery systems and platforms, howitzers, mortars and ammunition.

This collaboration with Ashok Leyland will strengthen its defence business and provide an opportunity to export these integrated systems.

Ashok Leyland shares were trading 2.96 per cent up at Rs 105.95 apiece on the BSE.