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Ashok Leyland plans Rs.5,250 crore capacity expansion

Thursday, 23 Nov 2006
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Ashok Leyland is planning to invest Rs.5,250 crore to enhance its commercial vehicle production capacity by 1.40 lakh units within a period of next four to five years.

The company is scouting for a second location for setting up a manufacturing unit which will have an initial capacity of 60,000 units and will increase to 1 lakh units in the near future with an investment of Rs.4,000 crore. Ashok Leyland has already selected Uttaranchal to develop a facility with capacity of 40,000 units, entailing an investment of Rs.1,250 crore.

The company is also scouting for two location to diversify its bus body fabrication facility to North India, besides the existing two facilities at Trichi and Madurai. These facilities will be expanded with equal participation by its Spanish joint venture bus maker, Irizar.

Besides this, Ashok Leyland has already announced a bus assembly unit in Ras-al-Khaimah in United Arab Emirates that will be functional by early-2007 with initially sales of 1,000 units in the West Asia and North African markets.

Also See:

Ashok Leyland plans new unit in Uttaranchal (31-Oct-06)

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