Ashok Ley­land plans Rs 1000 Cr new in­vest­ments in 2018-19

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Com­mer­cial ve­hi­cle ma­jor Ashok Ley­land is plan­ning to in­vest Rs 1000 crore in 2018-19 mainly for de­vel­op­ing in­no­va­tive prod­ucts, in­clud­ing elec­tric ve­hi­cles. The Com­pany ex­pects to ex­ceed the in­dus­try av­er­age growth rate of 10-12% in 2018-19. Vinod K Dasari, Man­ag­ing Di­rec­tor, Ashok Ley­land, said the pro­posed in­vest­ment would also cover BS VI, Light Com­mer­cial Ve­hi­cle and oth­ers. The com­pany will in­tro­duce 3 big prod­ucts, apart from sev­eral vari­ants in M&HCV space, LCV and buses. In 2017-18 the com­pany had in­vested Rs 800 crore.

Ashok Ley­land, flag­ship of the Hin­duja Group, closed FY18 with rev­enues of Rs 26,248 crore and profit of Rs 1,563 crore. It posted 10.4% EBITDA mar­gin for FY18. The com­pany has also in­creased mar­ket share across all seg­ments. The do­mes­tic MHCV in­dus­try vol­ume grew by 12% for FY 2017-18 to 340,313 units (as per SIAM). Ashok Ley­land vol­umes grew by 14% to 116,534 units in FY 201718 in the do­mes­tic mar­ket. Ex­ports recorded a 36% growth in the fis­cal and the af­ter­mar­ket rev­enues also saw a healthy growth of 26%.

“FY 17-18 has been an ex­tremely sat­is­fac­tory year for us. Record do­mes­tic truck vol­umes, sub­stan­tial growth in LCV, win­ning of the sec­ond Dem­ing Award, con­tin­ued growth in mar­ket share, suc­cess of our dig­i­tal mar­ket place, and most im­por­tantly, the trans­for­ma­tion which i-EGR brought to the In­dian mar­ket and other achieve­ments vin­di­cate the ca­pa­bil­i­ties of Ashok Ley­land on var­i­ous fronts,” Dasari said. Gopal Ma­hade­van, CFO, Ashok Ley­land said, “We have posted record rev­enues with record prof­its and as at the end of the year, we are cash pos­i­tive with nearly Rs 3000 crore sur­plus. Our fo­cus on work­ing cap­i­tal and op­er­a­tional ef­fi­ciency will con­tinue. Our credit rating has been up­graded to ‘AA+’ after a span of 20 years.”

Mean­while, the Board of Di­rec­tors of the com­pany has ap­proved the Scheme of Amal­ga­ma­tion of Ashok Ley­land Ve­hi­cles Lim­ited, Ash­ley Pow­er­train Lim­ited and Ashok Ley­land Tech­nolo­gies Lim­ited with Ashok Ley­land Lim­ited, sub­ject to var­i­ous ap­provals.

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