Hinduja Group firm Ashok Leyland has initiated talks with foreign players for technological partnerships to foray into the aerospace business.
V Sumantran, vice-chairman, Ashok Leyland, said, “We are looking at opportunities in the aerospace business. When we finally enter, will depend on opportunities and the finalisation of areas in which we want to do business.”
The company is looking at both civilian and defence sectors for foraying into the aerospace business. Once finalised, Ashok Leyland would set up a separate company for aerospace venture.
“We are talking to different foreign companies for technology sourcing. The nature of the association, whether it will be an equity partnership or a joint venture, will depend on the kind of products we want to develop,” Sumantran said. The firm will, however, explore synergies with existing group companies for commencing operations in specific aerospace sectors.
Sumantran added, “Our specialisation is mobility solutions. We will explore synergies with our existing operations in deciding which the segment we want to focus on in the aerospace business.”
The company today showcased 6x6 and 8x8 defence logistics truck at the seventh Defence Expo in New Delhi. The group has formed a new company, Ashok Leyland Defence System Limited, to pursue interest in the sector.
Talking about its bid to develop and supply Futuristic Infantry Combat Vehicles (FICV) for defence forces, Sumantran said: “It is a long duration programme. Vehicles of all the players are going to be tested till 2016-17, and only after that orders will be placed.” Ashok Leyland is a part of a consortium with Larsen &Toubro and is responsible for management of mobility in the FICV programme, he added.