Financial Daily from THE HINDU group of publications
Friday, Nov 25, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Announcements


Ashok Leyland hikes prices

Our Bureau

Chennai , Nov. 24

ASHOK Leyland Ltd has informed dealers of a 2.5 per cent hike in prices of its vehicles. Mr K. Sridharan, Executive Director-Finance, cited higher input cost as the reason for the price hike.

In an informal chat with journalists on the sidelines of a conference organised here by the Confederation of Indian Industry, Mr Sridharan said that the company's foray into LCV/sub-1-tonne segment would necessarily be through acquisitions.

He said that the price hike, which officially took effect from November 21, would have a positive bearing on the company's turnover and profits for the current year.

The current year promises to be good for the company, for several reasons. First, there has been a spurt in purchase of buses by various State transport undertakings. Ashok Leyland expects STU sales of 6,000-7,000 vehicles, or about 1,000-2,000 vehicles more than last year.

Second, the Defence establishment will buy around 900 vehicles more this year. These are special application vehicles, such as fire fighters, and are "very high value" products. This is in addition to the 5,000-odd vehicles that Ashok Leyland sells to Defence every year, in the form of kits.

Third, Ashok Leyland's exports are growing. Mr Sridharan said that the company expected to get an order from ZF of Germany, its technology supplier for gearboxes.

Answering a question, Mr Sridharan said that Ashok Leyland was talking to "a few companies" (including one in China) for a possible acquisition. He said the company believed that the only way forward in the small commercial vehicles segment was to take over a company with a depreciated plant and an existing product and customer base. He did not want to give a timeframe for the acquisition.

Mr Sridharan said he was convinced that the commercial vehicles industry was in for good times, although there has been a dip in the demand for medium duty vehicles. There is no dearth of goods, freight rates are picking up and the roads are getting better, he noted.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Announcements



Stories in this Section
Ashok Leyland hikes prices


Matrix Lab to invest $18 m in Chinese co
Opto Circuits to raise Rs 100 cr via public offer
`No plans for small car'
New utility vehicle from Force Motors
BHEL awards for employees
`Give sops to power utilities to go in for carbon trading projects'
Tata Chem to buy UK soda ash firm
Ruia group on acquisition mode
Ruia group close to clinching Dunlop buy
`M&A market in India seeing unprecedented boom'
Govt allows Coke to buy out Indian shareholders in Hindustan Coca-Cola
Hindustan Latex not keen on taking over KSDP
Comply or face penalties — No extension of Clause 49 deadline, says SEBI chief
Most PSU cos yet to comply
Nicholas Piramal inks deal with hospital products co
MS Thermex plans expansion
Sakthi Auto pact with French co
HSBC staff, L&T donate building for school
SBI asked to submit rehab scheme for Dunlop India by Dec 14
Ford Fiesta's diesel version may lead sales
ONGC in talks with SAIL for coal bed methane supply
ONGC to finalise plan soon for coal gasification project


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line