A healthy traction from core industries such as steel, cement and mining are expected to drive growth, says ALL. File
| Photo Credit: PTI
Ashok Leyland Ltd. (ALL) has estimated the quantum of related-party transactions (RPT) with TVS Mobility Pvt. Ltd., for FY24 to be in the region of ₹9,000-₹10,000 crore and with Switch Mobility between ₹4,000-₹5,0000 crore. The commercial-vehicle manufacturer has sought the approval of its shareholders for the transactions at the forthcoming Annual General Meeting, the company said in the annual report.
TVS Mobility had been a dealers for ALL’s products for the past many years. It had also conducted marketing, sales campaigns for ALL from time to time (as a service). ALL holds 66.67% Global TVS Bus Body Builders Ltd. (GTVS), a joint venture with TVS Mobility.
“Hence, all transactions between ALL and TVS Mobility shall be treated as a Related Party Transaction,” the company said.
In FY23, ALL posted sales volume worth ₹36,144 crore.
Considering the business projections for FY24 and market trend, ALL expects that the aggregate value of transactions with TVS Mobility during FY24 to be in the range of ₹9,000-₹10,000 crore.
Switch Mobility is ALL’s step-down subsidiary and deals with electric vehicles. Considering the operational and business requirements of Switch and the support required from ALL in the form of loan or corporate guarantee, ALL expects that the aggregate value of transactions with Switch to be in excess of ₹1,000 crore and in the range of ₹4,000-₹5,000 crore. Hence, approval of the members is sought by way of an ordinary resolution.
The approval for RTP also covers transactions relating to financial commitments in any form such as equity, loans/advances, guarantees made directly or indirectly. ALL chairman Dheeraj Hinduja expects that in FY24, the demand to exceed pre-COVID levels of 2018-19 due to government infrastructure spending, strong replacement demand. Besides, a healthy traction from core industries such as steel, cement and mining are expected to drive growth. ALL is fully prepared to take advantage of the anticipated opportunities without compromising on market share and profitability targets, he said.
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