SECOND INDIAN PLANT FOR ASHOK LEYLAND IRIZAR
Ashok Leyland is gearing up to step up its fully-built buses' component to a higher level. Addressing a press conference after inaugurating the state-of-the-art Viralimalai facility of Irizar-TVS Limited, a three-way equal joint venture between TVS Sons Ltd., Ashok Leyland and Irizar of Spain, R. Seshasayee, Managing Director of Ashok Leyland, said 30 per cent of the buses sold by the company were built by itself at the moment. Ashok Leyland was keen to increase this percentage to 90 per cent over the next three years. During the next financial year, the company planned to take it up to 60 per cent, he said.
“We see the demand for buses, particularly for luxury segment, grow tremendously in India over the years due to Union government’s JNNRUM (Jawaharlal Nehru National Urban Renewal Mission) scheme, better road infrastructure and demand for seamless logistics connectivity across the country,.” Mr. Seshasaye said. “With engineering capability, quality and brand equity, Ashok Leyland has decided to increase the number of fully-built buses,” he added. He insisted that the Government should continue with the JNNRUM scheme, which helped to meet the seamless road connectivity across the country.
The new facility of the joint venture company has cost an initial investment of Rs. 30 crore, with a built-up area of two lakh square feet. The plant has three production lines and seven paint booths with a capacity to produce 150 coaches a month.
The company also launched the iT09. The joint venture company has now two manufacturing facilities - one each at Pudukottai and Viralimalai. The capacity of the company has gone up from 900 coaches per annum to 2,200 per annum. Irizar-TVS buses go to Africa and the Middle East via Ashok Leyland. Total sales of Irizar TVS clocked only 600 units in 2009/2010, which is nearly 50 percent less than in 2008/2009 when 1100 coaches were sold, and 1000 in 2008/2009. Around 70-75 per cent of the coaches built by the joint venture company currently went to Ashok Leyland.
