Ennore Foundries (EFL), a subsidiary of Ashok Leyland, has planned an expansion programme entailing an  investment of Rs.100 crore. 

The company plans to set up a greenfield facility for manufacturing automotive castings with a capacity of 45,000 tonnes. It may be noted that EFL's existing facility of similar capacity is located at Ennore, on the outskirts of Chennai.

A major portion of the expanded capacity would meet the incremental demand from Ashok Leyland and other domestic/ overseas automobile manufacturers.

The project is to be financed through internal accruals, contribution from Ashok Leyland and long term loans from banks/ financial institutions. 

Approval from the company's board of directors is expected shortly, after which steps are to be taken to identify a suitable location. Completion is targeted within 3 years from the date of approval.

The company is in the process of identifying location for the new facility. A team of officials from the company had visited industrial parks developed by State Industries Promotion Corporation of Tamil Nadu in Sriperumbudur, Gummudipoondi and Oragadam near Chennai. Ennore is looking for nearly 250 acres of land for the project.

The new unit comes in the wake of the company's Rs.650 crore expansion plan.

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Ashok Leyland plans expansion (29-Feb-04)