New orders may help Ashok Leyland report better performance

20 Feb 2009 Evaluate

Ashok Leyland (ALL) received an order of 500 mini buses worth USD 20 million from the Ministry of Transport, Angola in Jan ‘09. It is the 2nd order from Angola. It needs to be completed by 31st Mar ’09. Prior to the mini bus order, it received its 1st order from Angola for 500 buses - 300 buses specially developed to meet the Angola’s local requirement and 200 Falcon buses with delivery starting from Aug ’08. It was worth USD 23.5 million.

 

With their rural population transporting agricultural produce and returning with provisions, the company had developed unique bus that included goods compartment added to the seating area of this bus. It was built on a strengthened chassis to withstand the extra weight of goods and had a 4x4 configuration to combat trying under-tyre conditions. ALL is closely working with Angola transport authorities and agencies to develop a range of tailor-made vehicles.

 

Besides the Angola order, ALL has bagged order for 875 ultra high end low entry buses from Delhi State Transport Corporation worth Rs 480 crore. The supply of these 350a/c and 525 non a/c buses would begin mid 2009 and is expected to be completed by Sept ’09. Along with this, a maintenance contract worth Rs 710 crore for 12 years has been allotted. Also it had received order worth Rs 50 crore exports from Honduras Armed Forces. The company would supply 139 vehicles including trucks, tractor-trailers and buses. It is expected to be executed by end of FY09.

 

Currently, Delhi metro rail corporation has invited global tender for 300 air conditioned CNG buses. With regard to this, ALL is one of the local CNG bus manufacturers besides Tata motors. ALL, the flagship company of Hinduja Group, is leading commercial vehicle manufacturer in India.

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