Ashok Leyland planning acquisitions abroad

Hinduja group’s bluechip firm Ashok Leyland said it is looking for acquisitions abroad and would continue to focus on second hemisphere markets. “We are expanding our presence in foreign countries and we are also looking for some acquisitions,” Ashok Leyland Managing Director R. Seshasayee said. “The investment would be able to fund capacity expansions at Uttarakhand, new engine and gearbox lines at Ennore plant in Chennai and product development. Of the total investment, Rs950 crore (US$223.42 million) would be generated through loans, while the remaining would be sourced from internal reserves. The company has planned to expand capacity from 84,000 vehicles per year to 184,000 vehicles by 2009-2010. Seshasayee said the company has registered a sales turnover of Rs7,729.12 crore (US$1.82 billion) during 2007-2008 compared with Rs7,168.18 crore (US$1.69 billion) in the previous fiscal year. Its net profit rose to Rs469.31 crore (US$110.4 million), 6.4% up from Rs441.29 crore (US$103.7 million) a year ago. (May 8, 2008)