Ashok Leyland Signs MoU with Telangana State Government
Published On Oct 12, 2016
Ashok Leyland is setting up a commercial vehicle assembly plant in Telangana. State Industries minister Rama Rao informed the media about the INR 500 crore investment that the CV manufacturer will make in the state. It is believed the plant will provide employment to more than 1000 people.
Ashok Leyland has already signed a MoU with Telangana government and a sum of INR 500 crores will be invested over phases. The commercial vehicle manufacturer currently has facilities located in Pantanagar, Alwar, Bhandara, Hosu and Ennore in India. If sources are to be believed, Hinduja Motors are also looking forward to invest in Jharkhand.
What could be in the pipeline?
The land for the facility has not been allocated yet but we predict it to be near a major sea port.
Ashok Leyland seems to be following a clear, but brilliantly devised policy. If the plan goes well, Telangana on one hand will provide the company with a nearby port for its import and export needs and Jharkhand on the other will help cut manufacturing costs by providing the company with various metal ores.
A lot of media presence
The commercial vehicle manufacturer was trending the news circles recently due to the break of its seven year old relationship with Nissan, followed by the intermediate commercial vehicle Guru’s launch around the corner. These, coupled with companies’ investment plans in Telangana are clear signs of the CV makers’ aggressive yet calculated approach for the future.
Ashok Leyland is also set to challenge Tata 407 with Guru. Apparently, the first Guru keys were also handed over to one of the Golden Temple’s committees recently.
The most interesting news about the MoU signed between Ashok Leyland and Telangana is the fact that it was signed within three days of the official meetings. The construction of the facility is rumoured to start by the end of this fiscal year.