rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Leyland ups number of working days

Leyland ups number of working days

March 12, 2009 08:59 IST

Ashok Leyland, a commercial vehicle manufacturer and the flagship company of the Hinduja Group, has increased number of working days at its manufacturing units to five from three.

The company, which was producing vehicles all seven days in a week, had slashed production to three days at its all six manufacturing units in November 2008 in the wake of slackening demand.

The company's decision to increase working days comes after it reported a 33 per cent increase in the sales in February. Its sales in February stood at 3,245 units compared to 2,444 in January.

In mid-February, K Sridharan, chief financial officer of Ashok Leyland, said that "the worst is over" and the industry will start witnessing growth in the next six months. The growth will be mainly driven by the government spending on infrastructure projects, including construction of new roads, bridges and on the public transportation system, he had said.

The company has already bagged two such orders worth -- one for supplying 875 high-end ultra low entry buses to Delhi Transport Corporation, which is worth Rs 480 crore (Rs 4.8 billion) , and another a maintenance contract from DTC valid for 12 years worth Rs 710 crore (Rs 7.1 billion).

This would be the company's single largest order from a state transport corporation in value terms. The company would supply 350 air condition and 525 non-air condition buses by September 2009.

Ashok Leyland has also bagged an order worth $43.5 million (around Rs 21.7 billion) from the Angolan government to supply 1,000 buses.
BS Reporter in Chennai
Source: