Auto major Ashok Leyland on Friday said it would export buses to Pakistan soon and was also exploring the Chinese market.
The company had already established contacts with some bus operators in Karachi and Lahore for export of buses, its managing director R Seshasayee told a press conference in Chennai.
It was also making a "determined" bid to enter the Chinese market, but the rules there were making it difficult for the company to have an early entry, he said.
Already, the company had tested vehicles fitted with Chinese spares and was waiting for an opportunity to enter the country, he said.
On its plans, he said Ashok Leyland would be launching some of its new generation vehicles like a tractor fitted with J engines and a factory-developed 'intercentury' coach with 180 hp engines, in August next. Mini buses in diesel and CNG versions and the new Ecomet truck were also on the anvil.
The company was working on developing a Euro II engine with common rail fuel injection system, Seshasayee said.
He announced the setting up of a joint venture with Gulf Oil Corporation to provide model dealership, offering total transport solutions. The JV would start its work from Jharkand, Bihar and north-eastern states to start with, he said.
Announcing the financial results for the last fiscal, Seshasayee said Ashok Leyland's net profit rose from Rs 120.21 crore (Rs 1.20 billion) in 2002-03 to Rs 193.58 crore (Rs 1.93 billion) in 2003-04.
He said the board of directors had proposed a dividend of 75 per cent to share holders as against 50 per cent last year.
During the last fiscal, the sale of vehicles grew by 33.5 per cent and exports by 48.3 per cent, while the sales turn over was at Rs 3,927 crore (Rs 39.27 billion) against Rs 3,074 crore (Rs 30.74 billion) in the previous year.
The financial expenses of the company declined by 64.5 per cent as the interest rates went down, he said.
The emphasis on developing road infrastructure through the prime minister's highway projects of Golden Quadrilateral and North-South and East-West corridors, easy availability of finance and government regulation to phase out aged vehicles proved beneficial to the truck and bus industry, Seshasayee said.
While the truck industry grew by 45.2 per cent, the bus industry clocked a 18.4 per cent growth, he said, adding that Leyland concentrated more on trucks last year to meet the increasing demand.
The company proposed to spend Rs 200 crore (Rs 2 billion) to raise its capacity to manufacture 67,000 vehicles per annum during the next two years and the same amount for its new generation products during the same period, he said.
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