Amid general concerns over export growth due to global economic situation, Ashok Leyand (AL) sees a promising year. It expects a double-digit rise in exports this fiscal.
“We have already established ourselves in the Middle East, and we have been targeting African market – eastern and western regions through our operations in the UAE. We are confident of boosting our exports to African markets,” Dheeraj H. Hinduja, Chairman of Ashok Leyland, said at the company’s annual general meeting here.
His statement was the reflection of what the company management had indicated about their export plans recently. Exports are strategically important to the company in the medium-term, and the Hinduja flagship would like to have a stable one-third of its revenue coming from exports. The company was predominantly focused on the countries in the SAARC region i.e Bangladesh and Sri Lanka. But, it expanded aggressively in the Middle East and built a plant in Ras Al-Khaimah, which is now producing 10 buses a day when compared with 2-5 buses. It also started penetrating into African markets. It was doing well in CIS region till the market there collapsed.
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With its aggressive plans, AL is looking at a growth rate of about 30 per cent in exports to Middle East and Africa. Historically, its exports used to be only spot deals. Rather than doing that, the company has now planned to invest in some chosen markets in establishing own network and if necessary, its own assembly facilities and so on.
AL was the third largest exporter of commercial vehicles (trucks and buses) after Tata Motors and Mahindra & Mahindra in 2014-15. AL’s exports at 12,548 units grew by 33.5 per cent.
Mr. Hinduja said that 2014-15 was a watershed year for the company. Though the CV industry had not fully recovered from the preceding years of slow down, Ashok Leyland posted commendable all-round performance.
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