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Corporate - Overseas Investments
Avia benefits to kick in this year, says Ashok Leyland

Archana Venkat

Chennai April 21 Truck manufacturer Ashok Leyland expects to see the benefits of its recently acquired truck business unit of Czech company Avia kick in this year. The company started the process of integrating the Avia unit last year.

According to Mr K. Sridharan, Chief Financial Officer, the company has beefed up staff strength at the Avia unit to aid the research and development activities, besides handling production work.

Avia manufactures light commercial vehicles of 6-tonne, 7.5-tonne and 9-tonne capacities using imported engines. Additionally, Ashok Leyland has plans to manufacture "high range" commercial vehicles at the unit, Mr Sridharan said. "Avia will use our engines for some of these vehicles."

The company said it planned to manufacture two ranges of trucks from the Avia unit, thus more than doubling its production capacity to 5,000 vehicles a year.

Accessing new markets

"We want to access new markets such as West Asia with Avia as the base. But we will do this without disturbing the existing manufacturing operations at the unit," he told Business Line on the sidelines of a seminar organised by the Confederation of Indian Industry-Institute of Logistics.

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