Ashok Leyland focuses on debottlenecking plants

18 Aug 2021 CW Team

Indian multinational automotive manufacturer, Ashok Leyland, announced a capital expenditure (capex) of Rs 750 crore for FY22 and will invest only in plant debottlenecking as and when commercial vehicle demand picks up speed.

The majority of investments in its plants in Hosur and Ennore in Tamil Nadu and Andhra Pradesh are already in place, as per a top company official.

Ashok Leyland CFO Gopal Mahadevan said that the company has already invested enough in these plants, and will now invest more in debottlenecking capacity which will come if there is further demand rise.

So the company will discuss if it will be Rs 750 crore or not. Further capex will be increased in segments that are developing like the light commercial vehicle (LCV) segment, he added.

Mahadevan said if demand picked up momentum and the requirement was higher than 6000 units per month, production will be a ramp-up and that is something we are thinking about, said Mahadevan.

However, the company has enough capacity to cater to medium and heavy commercial vehicles demand.

As for working capital debt, he added that the current net debt of the company is Rs 4,173 crore. The company is not looking at repaying this because there is stable long-term debt, but in the short term, it might grow or decline depending on requirements of capex, added Mahadevan.

The company, which observes a sharp rise in exports over a low base, is looking to raise the global business share in its overall pie.

Image Source

Also read: Ashok Leyland reduces production amid second wave of Covid-19

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..