Ashok Leyland is all set for its solo journey in the light commercial vehicle (LCV) space after separating itself from partner Nissan. The company has planned to introduce 8-10 products over the next 2-3 years that is going to entail an investment of up to Rs. 400 crore. It aspires to become a full range player in the LCV space, will introduce a mix of updated versions of its existing products as well as all new ground up vehicles.
When asked about investments in the project, Mr Dasari mentioned that it would be somewhere around Rs. 300-400 crore. The first of the new products would hit the market as early as next 6 months. There will be refreshes and upgrades to the existing products using Nissan technology, most of the future LCVs from Ashok Leyland will be developed in-house. The new technology for the new products would be in-house.
Last month, marked the end to their 8-year-old partnership, Ashok Leyland and Nissan Motor decided to part ways with the Japanese partner and agreed to sell its stake in three joint ventures to the Indian partner. As part of the pact, Ashok Leyland will continue to build, under a licensing agreement, Dost and Partner.
During May 2008, Ashok Leyland and Nissan had created three JVs - Ashok Leyland Nissan Vehicles (ALNVL) for manufacturing vehicles; Nissan Ashok Leyland Power Train (NALPT) for constructing power trains; and Nissan Ashok Leyland Technologies (NALT), which is a technology joint venture.
When asked if the company would incorporate new production capacities for new products, he said that as of now they haven’t planned a new capacity. They have existing capacity which is under-utilized so they will first ensure that is fully utilized. Commenting on the Europe operations, Mr Dasari added that the market is not doing good and company is doing some cost cutting and is yet to decide on the future course of action.
On big trucks and buses, he mentioned that the company has been doing well and in the past few years its share in the domestic market went up from about 23 per cent to over 30 per cent.
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