Commercial vehicle maker Ashok Leyland (ALL) has outsourced assembly of its genset engine powerpacks to TVS Logistics, a leading logistics player, in a deal that is expected to help ALL achieve savings on costs and time as well as add value to its power solutions business.
As per the deal between Ashok Leyland and TVS Logistics, a dedicated and full-fledged logistics assembly facility has been set up near Chennai at an initial cost of Rs 2.5 crore.
ALL will supply engines and radiator to TVS Logistics, which will assemble genset engine powerpacks at the new facility and send the assembled packs to Ashok Leyland, which will supply to its customers in both domestic and export markets. The assembly facility will have a capacity of 14,500 units per annum that can be up-scaled to 30,000 units. It will assemble different genset engine powerpacks in the range of 10 – 2,000 KVA for Ashok Leyland. This capacity is expected to meet company’s sales requirements for the next three years.
“Thanks to our acquisitions in the US and the UK, we are now able to offer this sub-assembly services in India,” R Dinesh, managing director, TVS Logistics Services said.