Friday, Dec 17, 2010

Gulf News

saud lauds company’s choice of emirate for major joint venture

Ras Al Khaimah Ashok Leyland, one of India’s largest commercial vehicle manufacturer yesterday launched its $20 million (Dh73.4 million) assembly facility in Ras Al Khaimah.

The facility is a 50-50 joint venture between Ras Al Khaimah Investment Authority (RAKIA) and Ashok Leyland.

Production started earlier this year with 600 buses by year-end, and will increase to 1,500 in 2011 and 2,000 in 2012.

His Highness Shaikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, officially opened the facility.

“Ashok Leyland is a well-known brand and part of a well-known family in the business world. We are very honoured with their choice of the emirate of Ras Al Khaimah for their investment. “This is another milestone as well that we’re successful in attracting serious investors and it’s an important step in our ability to maintain a diversified economy,” he said on the sidelines of the event.

Local production

While the buses have a high penetration in the UAE, the company will begin to assemble its trucks in RAK, the AVIA range, to increase local production and export capabilities. Truck production will start next month.

Officials said first year production would meet local needs, but 40 per cent of units will be exported by next year.

“When we have a large market share and brand name, its only natural that we have a manufacturing footprint as well,” R. Seshasayee, managing director of Ashok Leyland, said in Ras Al Khaimah.

He said the UAE would be its export hub for the Middle East and African market as well as parts of Europe.

“We’ve drawn up ambitious plans to be among the top five bus manufacturers in the world. As part of that, we’re spreading into new regions,” Seshasayee said. “This is something new for the region. There is not enough automotive manufacturing here.”

Speaking of current market conditions, he said that the Middle East had seen a major drop in sales from 200 buses a month to 20-30 units.

However, the region has seen some recovery and is now up to 80-90 units a month.

“[The] Middle East will see revival happening because of its linkage with developing economies like India,” he said.

Phase one

The facility has seen up to $15 million in investment till now for phase one, while the coming year would see another $5 million.

Officials said that the initial investment was more than currently needed, in order to be prepared for future growth. Khater Massa’ad, chief executive of RAKIA said the authority is in talks with more automotive companies looking to set up a manufacturing base in Ras Al Khaimah.

“We’re looking at other Indian and European automotive companies. In two to three months, we hope to have some good news,” he said.

Boost development

Ras Al Khaimah has seen a rise in economic activity recently and there are plans to significantly boost the development and revenues from projects such as the free zone.

Shaikh Saud said his aim is “to see economic development in the emirate and the improvement in the quality of life, the improvement of our women and how they become major players in our economy, and the improvement of our country.”

oliver clarke/Gulf News

Boosting industry

His Highness Shaikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah; Shaikh Mohammad Bin Saud Bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah; Shaikh Nahyan Bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research; Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group; Obaid Humaid Al Tayer, Minister of State for Finance; with Gopichand P. Hinduja, co-chairman of the Hinduja Group of Companies, during a tour of the Ashok Leyland factory in Ras Al Khaimah yesterday. The tour was also attended by Srichand P. Hinduja, chairman of the Hinduja Group of Companies, Prakash P. Hinduja, group president in charge of Europe operations, and other officials and dignitaries.

We’ve drawn plans to be among the top five bus manufacturers in the world. As part of that, we’re spreading into new regions. This is something new for the region. There is not enough automotive manufacturing here.”

R. Seshasayee

Managing director, Ashok Leyland

By Nadia Saleem ?Staff Reporter

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