Ashok Leyland to pump Rs.3,000 crore in operations

Written by Agencies | New Delhi, April 30: | Updated: Apr 30 2008, 23:39pm hrs
Hinduja flagship company Ashok Leyland said it will invest Rs 3,000 crore on expanding capacity of its new plant in Uttarakhand and engine development, while it is also looking to set up assembly units in Egypt, Bangladesh and South Africa.

A part of the planned investment will also go on its engine development programme with Austrian firm AVL, under which the partners are developing six cylinder and four cylinder engines with Euro IV compliance.

"The company will be investing additional Rs 3,000 crore on the new vehicle plant which is coming up in Uttarakhand capable of rolling out 50,000 vehicles, besides expanding the plant at Ennore and engine development," Ashok Leyland Chief Financial Officer K Sridharan told reporters on the sidelines of the CFO Asia Summit in New Delhi.

Ashok Leyland expects to roll out the first vehicle from the integrated plant in Uttarakhand by April 2009, he added.

It is also developing two projects overseas -- one bus body building unit in Ras Al Khaimah (UAE) and the other in Dubai for special purpose vehicles. The Ras Al Khaimah project is expected to be commissioned by October this year, which would produce 2,000 vehicles a year, Sridharan said.

"On similar lines with Ras Al Khaimah (RAK), we will set up assembly units, primarily for buses in Egypt, Bangladesh and South Africa, depending upon the success of RAK.

The first one is expected to be in South Africa," he added.