Ashok Leyland to set up plants in Dubai, N India

NEW DELHI: India's second largest truck maker Ashok Leyland is heading for the Gulf.

The Hinduja group flagship firm on Friday announced plans to invest Rs 550 crore to expand production capacity and establish a bus manufacturing venture in Dubai.

Besides, the firm is also planning to set up a new bus-making unit in North India. "The plan is to take our capacity to 100,000 units from the current 77,000 units.

Plans are underway for setting up a manufacturing unit in Dubai, while the process for identification of a location in North India is underway,"Ashok Leyland MD R Seshasayee said at the ongoing Auto Expo.

The Dubai facility - which will produce buses and also make bus bodies - would have a capacity to produce 2,000 units a year.

"The location has not been finalised yet, but we will be in business in Dubai within the next six months,"he said. The unit will also cater to demand in other markets in the Middle East and Africa.

"North India facility will house a capacity to build 600 buses,"Seshasayee said. The expansion and new ventures will be funded mainly through internal accruals.

The firm is, alongside, also exploring plans to establish a manufacturing unit in China to build pick-ups and light trucks.

Ashok Leyland is also entering new areas in an effort to grow beyond its core business of making commercial vehicles.

This includes a foray into vehicle design and components as well as component sourcing.

"In all of them, the company will draw from its friends in terms of infrastructure, experience and expertise,"he said.

Ashok Leyland, Seshasayee added, is also looking at sourcing more components from China.