Date:14/01/2006 URL: http://www.thehindu.com/2006/01/14/stories/2006011407311800.htm

Business

Leyland to set up plant in Dubai

Staff Reporter

To ramp up production capacity

NEW DELHI: The Hinduja Group flagship company, Ashok Leyland, on Friday announced an investment of Rs. 550 crore for capacity building and setting up a manufacturing base in Dubai for exports. "The money will be invested over a couple of years that would increase our production capacity from 77,000 units to one lakh units,'' Ashok Leyland's Managing Director R. Seshasayee said at a pres meet at the Eighth Auto Expo here.

Stating that West Asia and North and West Africa were important emerging markets for the company, Mr. Seshasayee said the Dubai operation would cater to the needs of these new markets. "The funds will be generated through internal accruals. The manufacturing unit in Dubai will be used for bus chassis and body-building with an initial output target of 2,000 units,'' he said.

He said the company was in the process of identifying a location in North India to set up a manufacturing facility for fully built buses along with its joint venture partner IRIZAR-TVS. The new facility will initially produce 600 units annually.