Business Daily from THE HINDU group of publications
Tuesday, Apr 10, 2007
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Business Daily from THE HINDU group of publications Tuesday, Apr 10, 2007 ePaper |
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Corporate
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Outlook Ashok Leyland expects 24% growth this fiscal Our Bureau
NEW ORDER: Mr R. Seshasayee (left), Managing Director, Ashok Leyland, and Mr Vijay Sankeshwar, Chairman, VRL Logistics, addressing a press conference in Bangalore on Monday. - G.R.N. Somashekar
Bangalore April 9 Ashok Leyland Ltd on Monday said that it expects to post a growth of about 24 per cent during the current fiscal to record sales of over 1-lakh units. Ashok Leyland Managing Director, Mr R. Seshasayee said the growth of the commercial vehicle industry may however slow down to about 10-15 per cent from 30-35 per cent last fiscal because of higher interest rates. "Even the 10-15 per cent itself is good enough as the previous year's growth rate was above normal," he said. He said Ashok Leyland would be able to surpass the industry growth rate because of its flexibility to customise the fleet as per the needs of the customers and the expected boom in the retail industry. Mr Seshasayee announced that Ashok Leyland had bagged its single largest order so far from VRL Logistics for 600 trucks worth Rs 83 crore. "This is perhaps our single largest order from the private sector. The 2516H multi axle vehicles for VRL have higher powered engine which allows faster turnaround," he said. VRL Logistics plans to buy a total of 1,000 vehicles during the calendar year of which 800 will be from Ashok Leyland. VRL has a total of 2,400 vehicles and its last year's turnover was around Rs 450 crore. It bought around 650 vehicles last year. VRL's Chairman, Mr Vijay Sankeshwar, said the company will be able to finance the acquisition of new vehicles through a combination of internal accruals as well as from raising funds from non-banking finance companies. He said the main competition for companies with such large fleet was from the Railways as they offer far more competitive rates than road transport companies.
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