Ashok Leyland subsidiary Ennore Foundries plans Rs300-crore expansion.

23 October 2007

The company intends to increase its capacity to 2.30 lakh tonne per annum from the current levels of around 1.50 lakh tpa at an investment of Rs300 crore. Ennore Foundries would complete the expansion project in three years time from now.

The additional capacity will become ready in three years.

The capacity increase comes at a time when parent Ashok Leyland Limited is proceeding with a joint venture with Japan''s Nissan Motor Company to make commercial vehicles in India.

However, V Sankar, chief financial officer, Ennore Foundries says, "There are strong possibilities of Ennore Foundries supplying castings for our parent''s commercial vehicle joint venture. But the decision to expand is not mainly for that alone."

Adds V Mahadevan, managing director, Ennore Foundries, the proposed expansions will be for making ductile iron and grey iron castings including blocks and heads, low pressure aluminium die castings, cast iron, aluminium castings and also for setting up of a machining unit.

According to him the ductile cast iron unit will be set up in Hyderabad while the company is considering various options for locating the aluminium castings facility.