The country’s second largest commercial vehicle maker, Ashok Leyland is set to get a boost in its truck manufacturing capacity as the company prepares to commission its new plant at Uttarakhand by mid January 2010. The new capacity is expected to boost the company’s bottom line besides enabling it to fully meet the future demand.
The plant, which will be a highly integrated plant of the Hinduja Flagship Ashok Leyland, will initially have a capacity of 50,000 units. “With this, the company will have a total capacity of 150,000 vehicles a year that is expected to be adequate to meet the demand growth in the immediate future,” K Sridharan, CFO, Ashok Leyland told Financial Chronicle.
The total investment planned for the plant is about Rs 1,100 crore, of which Rs 800 crore has already been spent. The facility will help the company realise the fiscal incentives offered by the state government for the vehicles to be produced at this plant.
The company is also likely to benefit from logistics for supply to North, East and Western markets from this facility. “This will make the most heavy-duty vehicles such as multi-axle vehicles,” he said. The company has identified supply sources within tax-exempted areas in Uttarakhand and Himachal Pradesh. Ashok Leyland plans to produce about 2,000 vehicles at this plant during the fourth quarter of this fiscal while it is hoping to produce 20,000-30,000 units during next fiscal. The new plant is expected to generate sales revenues of over Rs 3,000 crore by the end next fiscal.
Source:http://www.mydigitalfc.com/
The plant, which will be a highly integrated plant of the Hinduja Flagship Ashok Leyland, will initially have a capacity of 50,000 units. “With this, the company will have a total capacity of 150,000 vehicles a year that is expected to be adequate to meet the demand growth in the immediate future,” K Sridharan, CFO, Ashok Leyland told Financial Chronicle.
The total investment planned for the plant is about Rs 1,100 crore, of which Rs 800 crore has already been spent. The facility will help the company realise the fiscal incentives offered by the state government for the vehicles to be produced at this plant.
The company is also likely to benefit from logistics for supply to North, East and Western markets from this facility. “This will make the most heavy-duty vehicles such as multi-axle vehicles,” he said. The company has identified supply sources within tax-exempted areas in Uttarakhand and Himachal Pradesh. Ashok Leyland plans to produce about 2,000 vehicles at this plant during the fourth quarter of this fiscal while it is hoping to produce 20,000-30,000 units during next fiscal. The new plant is expected to generate sales revenues of over Rs 3,000 crore by the end next fiscal.
Source:http://www.mydigitalfc.com/
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