Ashok Leyland eyes major expansion of defence business

Nayanima Basu Updated - January 20, 2018 at 07:55 AM.

The company recently bagged ₹800-cr worth orders from Defence ministry

nitin-seth

Ashok Leyland is eyeing massive expansion of its defence business as it forays into manufacturing Field Artillery Tractor (FAT) platforms for battle guns, 4x4 armoured vehicles and ambulances for the Indian armed forces.

The Chennai-based company recently bagged an order worth ₹800 crore from the Ministry of Defence to develop 455 units of 6x6 FAT, 825 high-tech army ambulances and other super stallions 6x6, 8x8 to 10x10 heavy military trucks and vehicles under the ‘Make In India’ programme. “We plan to execute this order in the next two years. As far as the stallions are concerned, we were only making 4x4 all this while. Now, the Ministry wants us to make 6x6, 8x8 and 10x10, on tender basis. Stallion is a regular business for us,” Nitin Seth, President – LCV & Defence, Ashok Leyland, told BusinessLine .

At present, the armed forces mostly use trucks made by Czech manufacturer Tatra as far as the 8x8 and 10x10 super stallions are concerned.

“During the tender process, we emerged as the leader winning 12 out of 14 bids. We have cleared the trials and emerged the best and cheapest,” he added.

Seth said the super stallions will be manufactured in its Hosur plant, adding that the company is planning to ramp up the number of employees there. The plant currently has nearly 1,500 engineers.

The company is also planning to mount indigenously made 155-mm towed Howitzer Dhanush guns on these stallion trucks.

“We have to make sure that the roofs of these trucks do not collapse with the recoil impact of these guns. We also plan to mount multi-barrel guns on the 6x6 stallions,” he said.

Strategic alliances

For its foray in newer segments of defence manufacturing, the company is tying up with international defence majors, such as Lockheed Martin and SAAB.

With Lockheed Martin, the company has tied up for a technology transfer and licensing arrangement for a 4x4 light armoured vehicle under a $1 billion order.

“We hope the bidder will be announced in the next two-three years. We have long-term plans for these light armoured vehicles. The Indian Army is in dire need of these vehicles. So, we hope to receive major orders,” Seth said.

Export plans

There are also plans to export these vehicles to Afghanistan, Iran, Iraq and Syria, where the terrain is tough for big trucks to fight wars.

Ashok Leyland has also tied up with SAAB for developing truck driving simulators that ply on challenging terrains.

Published on April 10, 2016 16:50