Ashok Leyland to invest Rs 4,000cr in 3yrs

Hinduja Group firm Ashok Leyland has drawn up a Rs 4,000 crore capital expenditure plan for building capacity, developing products and upgrading technology.

"Our capex for capacity build-up, planned at Rs 4,000 crore over three years, also includes product development and technology upgradation," R Seshasayee, managing director, Ashok Leyland, told analysts at a meet here.

"The company plans to spend around Rs 1,000 crore in 2007-08 of which we have already spent 35% in the first half of this fiscal. The balance will be spent equally over the next two quarters," Seshasayee said.

The company's capacity at the end of FY07 stood at 84,000 vehicles per annum. By June 2008, the Ennore facility will add 50,000 vehicles per annum, and its Uttarakhand facility is expected to add 50,000 vehicles per annum by September 2009. This will take the company's total capacity to 1,84,000 units over the next three years, he said.

"The Uttarakhand facility will commence Phase I by H2FY09, and full 50,000 vehicles production by March FY10. The fiscal incentives will repay the cost of the project over four years," Ashok Leyland CFO K Sridharan said.