Ashok Leyland, the Hinduja Group flagship company in India, announced that the company is seeking overseas acquisitions and would continue to focus on 'second hemisphere' markets including Venezuela, Vietnam, Syria, Honduras, Indonesia, Thailand and Russia.

R Seshasayee, Ashok Leyland Managing Director, said, “We are expanding our presence in foreign countries and we are also looking for some acquisitions.”

The country's second-biggest bus and truck manufacturer has also earmarked Rs 3,000 crore for capex over the next three years (2010).

“The investment would be able to fund capacity expansions at Uttarakhand, new engine and gearbox lines at Ennore plant in Chennai and product development,” he added.

Out of the total investment, Rs 950 crore will be funded through loans, whereas the remaining would come from internal accruals.

Besides, the company has also decided to raise its annual capacity from 84,000 vehicles tp 1,84,000 vehicles by the next three years (2009-10).

Mr. Seshasayee also said that the company’s plant at Uttarakhand would be commissioned by March 2009.

As a part of its product plans, Ashok Leyland will roll out its ‘iBus’ in the existing year, and also strengthen its range of tractors.

Moreover, the company has recorded a 5.28% increase in its net profit, which stood at Rs 180.57 crore for the three-month period ended March 31, 2008, as compared to Rs 171.52 crore during the corresponding period of the last year.

The company’s total income for the quarter stood at Rs 2,573.61 crore, from Rs 2,307.9 crore in 2007.

For the year ended March 2008, the company has recommended a dividend of 150% at the rate of Rs 1.50, on every share of face value of Re one held,

As a part of value-added services, the company is in the process of formulating a complete set of GPS-based Telematics products under the brand name ‘ALERT’.

The shares of the company, on Thursday (8 May) declined 3.11%, to settle at Rs 40.5 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 3,183,804 at the BSE.