The 55-seater Falcon bus and 32-seater Oyster bus will be supplied from ALL’s $50 million facility in Ras Al Khaimah, UAE, the only certified local bus making facility in the Gulf Cooperation Council. Financial details of the deal were not disclosed.

Shares of Ashok Leyland (ALL) rose nearly 6% in Thursday’s trade on the BSE, with the stock closing at a four-year high of Rs 162.80 apiece, riding on the news of the company bagging a mega order for 1,400 school buses in UAE.

The commercial vehicle major had closed at Rs 154 apiece on Tuesday. While the shares opened at Rs 155.90 on Thursday, the figure went up to Rs 163.45 before the close.

ALL’s UAE distribution partners, Swaidan Trading — Al Naboodah Group, bagged the bus deal. Most of the supply will be to Emirates Transport and STS Group, a statement said.

The 55-seater Falcon bus and 32-seater Oyster bus will be supplied from ALL’s $50-million facility in Ras Al Khaimah, the UAE, the only certified local bus-making facility in the Gulf Cooperation Council. Financial details of the deal were not disclosed.

Dheeraj Hinduja, executive chairman, ALL, said, “We are very happy to receive these orders, and this is a historic moment. These products are made in the UAE assembly plant. The product concepts originate in the UAE, designs are done by our engineers in the UAE and are assembled in the factory in the UAE, with more than 55% of parts sourced in the UAE.”

The UAE plant has an installed capacity of 4,000 buses a year. Ever since its start in 2008, ALL has rolled out 25,500 buses from the plant so far.

Amandeep Singh, head, international operations, said, “Ashok Leyland is one of the fastest growing brands in the Middle East with a growing market presence in UAE. Our lowest total cost of ownership and strong after-sales support differentiates us and has helped us win these orders. We are excited with the growth we are seeing in the UAE economy and the opportunity it provides. We have aggressive plans to further enhance our portfolio in light commercial vehicle space.”

According to the ALL , the company has expanded its portfolio and launched light commercial vehicles Partner trucks and Gazl buses.

The UAE plant also exports buses to African countries.

Courtesy:FE, HBL, The Pioneer