Ashok Leyland to sell casting unit

The board of directors of Ashok Leyland, which met on March 5, 2005, has approved a proposal to sell the ductron castings unit (DCU) to an associate company - Ennore Foundries (EFL) - on a "going concern" basis.

According to a release issued by the company to the stock exchanges today, "the valuation for the unit was carried out by PriceWaterhouseCoopers, and has been negotiated and finalised by an empowered committee. The total sale consideration of Rs 62 crore will be payable by EFL in cash."

The release added that the proposed sale will be finalised by July 2005.