Ashok Leyland – Defence Expo

We are largest providers of logistics vehicles, primarily to Indian Armed Forces

Earlier we used to move only people (2% of defence budget), now we move everything from missiles to bullet proof vehicles (22% of defence budget)

Defence takes a long period, but once it comes it stays for a long period of time

Almost 800 crs of our business will come from defence

In last 1 year we have won 12 out of 15 tenders. these tenders are for developmental orders, once it starts converting into real things we will get cumulative orders of 5000 crs in next 5 years

It works in stages - RFI - RFP - Make a vehicle - Development order - Trials - then bigger orders

It is a long gestation business but not cyclical, once you are in, you are in for a long period of time

Will stick to our core competency of automotive technology and not get into something like submarines, missiles, guns etc