Financial Daily from THE HINDU group of publications
Thursday, Feb 09, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 09, 2006 |
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Corporate
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Outlook Ashok Leyland seeks vendor presence near Alwar plant M. Ramesh
A view of the Prabha Engineers unit in Alwar, Rajasthan
Alwar (Rajasthan) , Feb. 8 ASHOK Leyland intends to ask its vendors to set up operations close to the company's Alwar plant, which is now working to full capacity, Mr Anup Bhat, Special Director, Strategic Sourcing, said on Wednesday. At the inauguration of the Alwar unit of a supplier, Prabha Engineers, Mr Bhat said Ashok Leyland's assembly plant here would produce 10,000 vehicles this year, up from 7,000 last year. Observing that Prabha Engineers, which produces front-end structures (FES) for the truck maker, had agreed to set up a unit close to the Ashok Leyland plant "without any preconditions", Mr Bhat said such a move would benefit both vendors and OEMs. They can bring down inventory and transportation costs besides averting material handling defects, he said. He said Ashok Leyland would ask Prabha Engineers to supply a few other components as well. Mr C. Shivkumar, CEO, Prabha Engineers, told Business Line that cowl, canopy and fuel tanks could be the next products slated for manufacture. The new unit would produce 700-800 FES a month, Mr Shivkumar said. Prabha Engineers expects to end this year with a turnover of Rs 50 crore, of which the Alwar unit is expected to contribute Rs 2 crore. Next year, the first full year of operations, the unit's turnover is expected to be Rs 15 crore. Mr Shivakumar said his company has embarked upon a branding exercise. "We are looking at working closely with Syed Kirmani," he said. The former cricketer was present at the inauguration.
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