Ashok Leyland expects to cross INR 1,000 crore mark from defence business in FY24

Ashok Leyland expects to cross INR 1000 crore from its defence business with the Indian Army. The manufacturer has already crossed the INR 300 crore mark in the first half of the year.

Ashok Leyland, one of the leading truck manufacturers in India, is expecting to cross the four-digit crore mark from its defence business in FY24.

In July 2023, Ashok Leyland secured orders worth INR 800 crore from the Indian Army. As a part of this deal, Ashok Leyland delivered specialised vehicles to the Army including the Field Artillery Tractor (FAT 4x4) and Gun Towing Vehicle (GTV 6x6). Now the truck manufacturing company is expecting to cross the four digit crore mark.

In the first half of the year, the brand generated business of over INR 300 crore. A significant hike in defence business turnover is expected by the second half of the year.

The MD & CEO of Ashok Leyland, Shenu Aggarwal, said, “Defence business has been one of the highlights of this year, the kind of (order) pipeline for Defence is at a historic high. We should cross four digit topline on defence this year, even if we miss it, we would surely cross Rs 800 crore in business.”

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The defence business is a ‘strong pillar of growth’ for the company, according to Shenu Aggarwal. The brand has also established a leading position in the defence vehicle business with the latest order in July this year.

In FY23, Ashok Leyland supplied 782 completely built-up units (CBU) to the Indian Army which reduced the dependence on VFJ (Vehicle Factory Jabalpur). The company also delivered 300 water bowsers in a record time. The company has expanded its reach into the Indian Navy with HMV 4x4 (RIV - Rapid Intervention Vehicle) and into Directorate General Border Roads (DGBR) with the BAGH variants.

Ashok Leyland has won 80% of the tenders garnering over INR 2000 crore in business in the last five years. According to its mid-term plan shared with investors in June, the company expects to generate INR 3500 crore in business from defence deals.