Ashok Leyland to go slow on raising debt
November 11th, 2010 - 5:35 pm ICT by IANSChennai, Nov 11 (IANS) India’s second largest commercial vehicle manufacturer Ashok Leyland, authorised to raise Rs.700 crore debt this year, is not in a hurry as a major portion of the capital expenditure will be funded from internal accruals.
The company has announced Rs.1,200 crore capital expenditure over the next two years — Rs.400 crore on its expansion and Rs.800 crore in joint ventures.
“With the market for the commercial vehicles picking up, the cash generation for the company is good. Major portion of the proposed investments will be funded from internal accruals and the remaining portion will be met by debt raised at an appropriate time,” an official told IANS.
During the current fiscal, the company has raised Rs.360 crore debt at an average cost of around 7.79 percent per annum.
At the end of last fiscal, the company’s total debt stood at Rs.2,200 crore. Ashok Leyland plans to contain borrowings within Rs.800 crore over the next two years.
According to officials, the capital expenditure came down drastically as the company and its light commercial vehicle (LCV) joint venture partner Nissan Motor Company decided to use their existing facilities to roll out the vehicles instead of a greenfield facility.
Ashok Leyland will roll out the LCVs from its Hosur facility while Nissan Motor will produce the models at its Oragadam plant.
- Ashok Leyland-Nissan JV to roll out LCVs in 2011 - Apr 29, 2010
- Ashok Leyland-Nissan unveil 1.25-tonne goods carrier - Mar 29, 2011
- Ashok Leyland Nissan to roll out LCVs in mid-2011 - Jun 01, 2010
- Ashok Leyland-Nissan joint venture to roll out light trucks by 2011 - Jun 02, 2010
- Ashok Leyland Nissan rolls out Dost light commercial vehicle - Jul 22, 2011
- Ashok Leyland prices Dost LCV at Rs.379,000 - Sep 13, 2011
- Ashok Leyland net in 2011-12 down by 10 percent - May 14, 2012
- Nissan to export 20 percent of mini-vans made in India - Jul 31, 2011
- Nitin Seth is Ashok Leyland's executive director - Dec 14, 2010
- Ashok Leyland to invest Rs.2000 crore over two years - Jul 27, 2010
- Ashok Leyland targets 30 pc market share next fiscal - Mar 03, 2010
- Ashok Leyland targets 30 pc market share next fiscal (Lead) - Mar 03, 2010
- Ashok Leyland to invest Rs.1,000 crore on operations - May 20, 2011
- Ashok Leyland may get into car manufacturing with Nissan - Mar 04, 2010
- Ashok Leyland to use Nissan-Renault's Chennai facility - May 15, 2009
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