ALL plans Rs 3,000cr capex in next 3 yrs

By OUR CORRESPONDENT

Chennai, May 8: The Hinduja group company Ashok Leyland has posted 7.83 per cent growth in sales with a revenue of Rs 7,729 crore for the fiscal 2007-08 compared to the last fiscal. The net profit also improved to 6.35 per cent at Rs 469 crore.

Mr R. Seshasayee, MD, said the company would more than double its current capacity of 84,000 vehicles a year within next three years. It also plans to add 50,000 vehicles capacity each at Ennore and Uttarakhand facilities by 2010. The company would allocate Rs 3,000 crore capex over the next three years for expansion and greenfield projects.

Ruling out any additional equity infusion in the immediate future, he said the company would raise Rs 950 crore this year to meet the capital expenses.

Mr Seshasayee said despite market shrinkage the company managed to improve the growth. On the product front, the company plans to get the phase one versions of iBus on road this year.