The new order is for vehicles, gensets, spares and equipment for development of workshops, training modules and allied equipment.
20 Oct 2016 | 3934 Views | By Autocar Pro News Desk
Ashok Leyland, the second largest commercial vehicle maker in India, has bagged an order valued at US$ 170 million (Rs 1,135 crore) from the government of the United Republic of Tanzania.
This order is a clear indication of the company’s sharper focus on export markets over the past few ...
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Ashok Leyland, the second largest commercial vehicle maker in India, has bagged an order valued at US$ 170 million (Rs 1,135 crore) from the government of the United Republic of Tanzania.
This order is a clear indication of the company’s sharper focus on export markets over the past few years. The company has been aggressively tapping opportunities not just in the SAARC region but also Africa and the Middle East.
The new order includes vehicles, gensets, spares and equipment for development of workshops, training modules and allied equipment to be fitted on ambulances. It is fully financed fully by the EXIM Bank of India under National Export Insurance Account (NEIA) Scheme.
Announcing the deal today, Vinod K Dasari, managing director, Ashok Leyland (pictured above), said, “Exports to key international markets are an essential part of Ashok Leyland’s strategic intent to globaliae its product portfolio and de-risk itself from supplying only into India. The new order from Tanzania, which comes on the back of the US$ 200 million business from Cote D’Ivore, also reiterates the market acceptance of Ashok Leyland’s products in the African region.”
The CV maker has recently concluded the supply of 773 vehicles to Tanzania under a line of credit from the government of India. It is currently executing another order for supply of 777 vehicles to the Ministry of Home Affairs in Tanzania.
Expansion in the UAE
In March this year, Ashok Leyland had announced a significant manufacturing capacity expansion and an additional investment of US$ 10 million (Rs 67.11 crore) at its Ras Al Khaimah (RAK) plant in the UAE. This investment is part of the company’s plan to expand production of current models and also to introduce new models including mini-buses and trucks into the Middle-East market.
In the domestic market, in July this year, Ashok Leyland has received an order for nearly 3,600 buses from various state transport undertakings (STUs). Earlier this year the company has won new business valued at Rs 800 crore from the Indian armed forces.
Between April-September 2016, the manufacturer has exported a total of 5,570 vehicles, down 11% year on year. Given the new export business, expect improved numbers from the company in this fiscal.