Ashok Leyland plans to sell non-core assets: Report

In a bid to find a potential buyer for two of its investment in overseas non-core assets, Ashok Leyland has reportedly appointed an investment banker. Last year company sold non-core assets worth Rs 1,500 crore. The company is expected to dilute stakes in its German and Czech Republic subsidiaries, both which are loss making now.

The proposed move is in line with the company’s decision to sell or dilute stake in some of the core assets to reduce the debt level. Meanwhile, debt level was down by 24% to Rs 4,689 crore, as of March 2014, from Rs 6,163.2 crore in August 2013.

The company managed to reduce the overheads cost by 14% to Rs 461 crore in 2013-14 from Rs 537.1 crore, during the same period a year ago. Manpower cost was reduced by 7% to Rs 999.7 crore from Rs 1075.5 crore and operating working capital was reduced by 69% to Rs 244 crore form Rs 786 crore.

Ashok Leyland, the Hinduja Group flagship company in India, is engaged in the manufacturing of commercial vehicles and related components. The company’s products include buses, trucks, engines, defense and special vehicles.