ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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MICO-Diversification Plans

ASHOK LEYLAND Changing Gear ASHOK LEYLAND'S controlling interest has changed hands with the acquisition of the non-resident shareholding of 39.04 per cent in the company jointly by the Hinduja Group and ivecs, a wholly- owned subsidiary of the Fiat Group of Italy, from the Rover Group. The directors have raised dividend distribution by 2 per cent to 18 per cent for 1987. Production during the year was 16,347 vehicles compared to 15,265 vehicles in the previous year and sale 15,966 against 16,065: Sales realisation was higher at Rs 364 crore compared to Rs 337 crore and gross profit Rs 21.74 crore against Rs 14.90 crore, reflecting appreciable widening of profit margins, Although both depreciation and taxation claimed bigger slices, net profit stood at Rs 7.70 crore (Rs 5.97 crore). This covered the increased distribution twice as compared to 1.74 times previously, the company exported 444 vehicles against 223 vehicles in 1986. Export sales were primarily in the traditional markets of Sri Lanka, Mauritius, Africa and the Middle East, The HINO engine introduced as an optional fitment in passenger vehicles has received excellent customer response on account of its fuel efficiency and reliability. The bus version of the intermediate commercial vehicle called the CHITAL, fitted with the HINO 4 cylinder engine was introduced in the market in 1987 and is now in regular production. The new front end structure has been introduced on premium goods models since end 1987. A test track for endurance testing of vehicles has also been commissioned during the year.

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