Ashok Leyland focuses on debottlenecking plants
ROADS & HIGHWAYS

Ashok Leyland focuses on debottlenecking plants

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

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

Next Story
Real Estate

Dharavi Reimagined Rs 957.9 Billion Makeover

Construction World got a sneak peek at the plan submitted and approved by the Maharashtra Government a few days ago. Here are a few insights from the plan. When we spoke to SVR Srinivas, CEO of the Dharavi Redevelopment Project, last month, the plans were still under wraps. Today, with the development blueprint in hand, the vision is beginning to take shape—with timelines, phases, and goals now clearly defined. Imagine Dharavi in 2031 — no longer a crowded slum but a thriving, green, and modern community with wide walkways, clean parks, and fast metro connections. This dream is becomi..

Next Story
Real Estate

Tall Expectations

Mumbai’s World Trade Centre Tower 1, completed in 1970, marked the start of tall building construction in India, going by the Council on Tall Buildings & Urban Habitat’s definition of tall buildings as structures with a height of at least 150 m. More than half a century later, the country has barely 273 tall buildings by the same definition, according to the CBRE report Sky is the Limit: Rise of Tall Buildings in India.Mumbai remains the centre of tall building construction in India, notes Sailesh Mahimtura, Chairman & Managing Director, Mahimtura Consultants, a fact corrobora..

Next Story
Real Estate

Cool Office

In a city clogged by traffic and long commutes, WoCO One emerges as a sustainable, commuter-friendly workplace. Spread across 3.6 acre, WoCO One (World of Cool Offices) reimagines the modern office for today’s workforce. More than just a place to work, it nurtures wellbeing and collaboration through open, airy layouts, cafés, lush verandas and multifunctional terraces designed to inspire and refresh.“Gurugram is moving towards sustainability and the walk-to-work model aligns seamlessly with that shift,” says Gagan Deep Singh, Founder Director, WoCO...To read read the full story Cli..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?