With expansion of its product range, Ashok Leyland seeks to grow the share of participation in defence capital outlay in order to maintain its strong position in offering land-based mobility solutions to the Indian Army.

The Hinduja Group flagship company also plans to grow the share of exports in defence business to 15-20 per cent over the next few years.

“We are expecting the capital outlay of Army for all modernisation and weapon procurement programmes to grow to about ₹80,000 crore over the next five to six years. We hope to participate in 20-22 per cent of this outlay, up from five per cent level now,” Amandeep Singh, Head – Defence, told BusinessLine .

“Presently, with about five per cent participation in army’s capital outlay, we maintain a market share of about 65 per cent in the logistics solutions space for army. But with our growing addressable share, we will still be able to garner a decent chunk and maintain our position,” he further added.

Ashok Leyland has expanded its range from providing logistics vehicles to supplying contour military vehicles, missile carriers, and armoured vehicles to tracked vehicles. “All these vehicles were imported earlier. We have now become a complete mobility solution provider to army,” he said.

Today, the cumulative value of the projects in which Ashok Leyland is participating is worth more than ₹50,000 crore over the next 10 years. It has won 12 out of 15 mobility vehicles tenders of the army recently. “We continue to have very good hit rates and we hope to maintain this,” said Singh.

In armoured vehicles, it has started supplies to police forces in some States that include Jammu & Kashmir and Punjab. It is also working with paramilitary forces for supply of these vehicles.

The company sees huge potential in tracked vehicles (tanks such T-72, T-90 etc) as the Indian Army is looking to upgrade or modernise these equipment in terms of engines, suspensions parts and mobility systems as they have been in service for more than two decades.

The company is also looking opportunities in two more areas – supply of power packs for artillery guns and exports.

“We are targeting the self-propelled artillery guns programme where our power packs can be used. Presently, these power packs are being imported. The average cost of these packs will be ₹15-20 lakh depending upon the size, parts etc,” he said.

Ashok Leyland is exporting its logistics vehicles to Africa and is looking to target West Asia and ASEAN markets due to favourable growth opportunities.

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