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Ashok Leyland is setting up truck and bus assembling units in Africa.
The commercial vehicle manufacturer is in the process of setting up 2-3 units, one of them in Kenya. This is a part of its plan to strengthen its export markets.
Gopal Mahadevan, CFO of Ashok Leyland, said it will spend about ₹30 crore on each of the assembling units.
The truck and bus manufacturer is also looking at South-East Asia and South America for exports.
The objective is to triple exports over the next 3-5 years from the present 10 per cent, he said.
Ashok Leyland’s third quarter net profit was ₹198 crore, about six times that of the comparable quarter in the previous year. This was possible due to a combination of efficiency increases, focus on customer satisfaction, and a mix of products – particularly in the medium and heavy commercial vehicle segments, he said.
Over the last couple of years it has managed to bring down debt from about ₹6,400 crore in August 2013 to about ₹3,500 crore. Total industry volume in the current year has grown by 30 per cent to 2.07 lakh units for medium and heavy commercial vehicles. Ashok Leyland has outdone industry performance with a value of 66,609 units, a growth of 54 per cent, he said.
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