Ashok Leyland to Invest US $10 Million in Ras Al Khaimah with Exports in Focus
Published On Mar 04, 2016
In order to increase the production capacity of its UAE based Ras Al Khaimah plant in Dubai, Ashok Leyland has planned to invest a sum of US $10 million on the facility. The company plans to increase the capacity from 2000 vehicles to 6000 units a year. To achieve this feat, Ashok Leyland has already drawn a blue-print to produce about 25 buses and 10 trucks a day.
The first nine months of the FY2015 has been tremendous for Ashok Leyland as it has grown twice more than the other players in the automobile industry. As a result, this Indian firm had earned about 340 basis points in the stock market a couple of weeks back. In February, the company revealed its intentions to earn one fourth of its overall revenue through exports and just a week after, Ashok Leyland disclosed its plans to expand its UAE based plant's capacity. Apart from increasing production numbers, the company also plans on setting up a training and design center in the region.
“We will make the UAE our hub of international operations and export to Middle East, Africa and CIS countries from here. We have already committed $60 million [here] and there will be more,” said Dheeraj Hinduja, the chairman of Ashok Leyland.
Managing director of Ashok Leyland, Mr. Vinod Dasari, has said that the company has planned to employ about 300 people this year at the Ras Al Khaimah plant. Adding to this, he further said that there is a steady demand for its products from UAE and Qatar regions, but there is a significant drop of 80 percent from Saudi Arabia. The previous year, Ashok Leyland had supplied 150 vehicle a month to the Kingdom, which has now dropped from 20 to 30 vehicles a month.
“Everybody is hurt by the economy, but we have to be flexible and nimble-footed,” said Mr. Ashok Dasari.
This month, the Indian firm is also moving its headquarters for international operations to Dubai from Chennai. This explains about the company's ambitions to increase revenue from overseas market.