Mumbai: Hinduja group company Ashok Leyland will set up a new production facility in Uttaranchal at an investment of around Rs 1,100 crore. The commercial vehicles major has identified a 175 acre area in the Pantnagar area of the hill state for setting up the plant.
The company proposes to manufacture commercial vehicles at the plant but the actual rollout could take about 1-2 years, sources said.
The state government has cleared the proposal and will soon hand over land to the company. The state also offers excise and income tax breaks to investors.
This has also attracted other auto majors like Tata Motors, Mahindra and Mahindra, Bajaj Auto and Hero Honda who have set up bases in the state.
The Ennore, Chennai-based Ashok Leyland currently has five other manufacturing facilities - three plants at Hosur and assembly plants at Alwar and Bhandara. These together employ around 11,500 personnel.
Apart from this, the company is tapping the overseas markets as well. Earlier this month, the company announced plans to set up a $5 million bus assembly unit at Ras Al Khamiah in the UAE that will be gradually upgraded to a vehicle assembly plant for trucks and buses.