Ashok Leyland will look at exiting non-core areas to keep its growth momentum in FY17, Dheeraj G Hinduja, chairman of the company, has said. In an annual report just released, he said that portfolio rationalisation was already in process and that would see progressive exit from non-core and non-performing businesses.
A renewed thrust in international markets in the target clusters would be undertaken with products developed specifically for the identified markets. The capacity of the Ras-Al-Khaimah plant will be almost doubled this year. To cope up with increasing demand, a new assembly unit in Bangladesh is in the offing and further units in Africa are under active consideration, he said in the report.
Expressing complete satisfaction over company’s performance in FY16, Dheeraj Hinduja said defence-related business is being reappraised with a two-pronged strategy of growing the traditional tactical vehicles as well as broadening the offerings to address the government’s ‘Make in India’ requirements. To leverage availability of in-house developed world class Neptune engines and also respond to growing application needs, the power solutions business would be implementing an updated strategic road map.
According to him, the after-market business in which a multi-layered action plan is being spearheaded to achieve leadership position in both profitability and customer Satisfaction in all areas. The company will soon introduce of EURO-VI engine and exhaust system variants, commercialisation of hybrid and electric bus, introduce modular business programme for both truck and bus variants, he added.
With the strong revival in the M&HCV segment, coupled with replacement demand and gradual implementation of BS-IV norms by April 2017, the expected pick up in infra and mining sectors are expected to give a strong push for higher sales in FY17, the company said.