The Hindu Business Line : Ashok Leyland to set up unit in Uttaranchal

Ashok Leyland, the Hinduja group company, has announced plans to set up a vehicle manufacturing unit in Uttaranchal with an investment of over Rs 1,000 crore, according to a press release from the company.

The company will set up a vehicle assembly and cab facility to produce 25,000 vehicles a year, initially, and the production facility will be expanded to 40,000 vehicles. It has identified 200 acres land at Pant Nagar and the unit will create employment for 3,000 people.

Quoting Mr R. Seshasayee, Managing Director, Ashok Leyland, the release said that the unit would strengthen Ashok Leyland's presence in the northern region, which contributes to a quarter of its sales.

The development of Uttaranchal as an auto hub has made the selection easier.

The investments get excise duty exemption and income tax exemption/concession for five/10 years, the release said.

For the quarter ended September 30, 2006, Ashok Leyland reported a net profit of Rs 95.36 crore on an income from operations of Rs 1,928 crore.

During the corresponding quarter in the previous year, the company reported a net profit of Rs 75 crore on income from operations of Rs 1,440 crore.

The company's performance follows a 33 per cent increase in sales volume of 19,863 units (14,805).

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