Ashok Leyland to invest Rs.2000 crore over two years
July 27th, 2010 - 9:38 pm ICT by IANSChennai, July 27 (IANS) Commercial vehicle manufacturer Ashok Leyland will invest around Rs.2,000 crore over a two-year period at its plants as well as in joint ventures.
The company has got the shareholder’s nod to raise a debt of Rs.700 crore.
Speaking at the company’s annual general meeting here Tuesday, Managing Director R. Seshasayee said the company had invested around Rs.810 crore in 2009-10 in its facilities and Rs.142 crore in the joint ventures.
He said around Rs.1,200 crore will be invested in the company’s own facilities and Rs.800 crore in joint ventures.
Chairman R.J. Shahaney said the joint venture with Japanese automobile company Nissan Motor would make Ashok Leyland a full-range commercial vehicle player.
He said the first light commercial vehicle built jointly with Nissan will roll out next year.
Ashok Leyland is also looking for land to set up a greenfield facility to make the light commercial vehicles.
On the joint venture with John Deere for making construction equipment, officials said it is on track and pilot production will start by the end of this year and the first vehicle to roll out early next year.
According Seshasayee, the year ahead is promising with 15 percent growth. The company plans to launch 25 truck models over the next 18 months.
Ashok Leyland closed the first quarter of the current fiscal with a turnover of Rs.2,348 crore and a net profit of Rs.122.64 crore as against Rs.912.5 crore and Rs.7.7 crore earned during the corresponding period of the previous year.
The company had sold 21,400 units (domestic 19,460 units, exports 1,940 units) during the first quarter.
“Our first quarter numbers reflect the momentum that we picked up in fourth quarter of the last fiscal which is reflected in the fact that we have gained market share touching 27 per cent,” said Seshasayee.
- Ashok Leyland prices Dost LCV at Rs.379,000 - Sep 13, 2011
- 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 to go slow on raising debt - Nov 11, 2010
- Ashok Leyland net in 2011-12 down by 10 percent - May 14, 2012
- Ashok Leyland Nissan rolls out Dost light commercial vehicle - Jul 22, 2011
- Ashok Leyland's UAE joint venture plant goes on stream - Dec 16, 2010
- Ashok Leyland first quarter net profit dips 84 percent - Jul 27, 2009
- Ashok Leyland Q2 profit up 89 percent, to expand globally - Oct 20, 2010
- Nissan to export 20 percent of mini-vans made in India - Jul 31, 2011
- Ashok Leyland to invest Rs.1,000 crore on operations - May 20, 2011
- Ashok Leyland-Nissan joint venture to roll out light trucks by 2011 - Jun 02, 2010
- Ashok Leyland's net profit down 29.67 percent in Q1 - Jul 19, 2011
- Ashok Leyland to use Nissan-Renault's Chennai facility - May 15, 2009
- Ashok Leyland Nissan to roll out LCVs in mid-2011 - Jun 01, 2010
Tags: annual general meeting, ashok leyland, automobile company, construction equipment, crore, greenfield facility, japanese automobile, john deere, joint venture, joint ventures, light commercial vehicles, net profit, nissan motor, pilot production, quarter numbers, rs 1, rs 2, rs 800, truck models, vehicle manufacturer