Press Release

MEDIA AND COMMUNICATIONS OFFICE, GOVERNMENT OF RAS AL KHAIMAH

RAK Ruler inaugurates Ashok Leyland- RAKIA joint venture vehicle factory

Ras Al Khaimah, Dec 16: H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, today inaugurated the state- of- the- art vehicle factory of Ashok Leyland (UAE) LLC, a joint venture between Ashok Leyland, the flagship of the Hinduja Group and the Ras Al Khaimah Investment Authority (RAKIA) at the Al Ghail Industrial Park here.

The inaugural function took place in the distinguished presence of H.H. Sheikh Mohammed bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah, H.H. Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Emirates Airline and Group and Chairman of Dubai World, and Srichand P. Hinduja, Chairman of Hinduja Group and dignitaries from the Hinduja family and senior management of Ashok Leyland.

The facility, which is UAE's first vehicle factory, was dedicated by the RAK Ruler at another event that closely followed the inauguration, where he also launched the AVIA range of trucks manufactured by Ashok Leyland's Czech venture, AVIA Ashok Leyland Ltd. These vehicles will soon start rolling out from the RAK facility.

Speaking at the function, H.H. Sheikh Saud said that the new facility is a testimony to the growing partnership between UAE and India. “It is a partnership that has existed for centuries, that is rooted in a common tradition and the shared values of Asia. We are proud to be partners in growth with a world class organization like the Hinduja Group and I look forward to see many more products and opportunities being created out of this partnership.”

He added that RAK Government has strived to foster the right environment for growth by providing one- stop- shop for licensing and offering cost effective strategies and facilities to investors. “We understand that the fast- changing business environment of today calls upon governments to be equally responsive to change. So we have offered open access to investors, not as a privilege but as a right, because they are the best teachers for us on how to understand and adapt to change,” Sheikh Saud said.

The joint venture which was announced in 2006 with a phased investment outlay of USD 50 million has implemented the initial phase at an investment of USD 20 million.

The factory will have an initial annual capacity of 2000 buses and trucks of international styling and quality. The AVIA range of trucks, currently produced at the Prague headquartered plant, would also roll out from the RAK plant by next year with a planned capacity of 2000 trucks per year. The D- Line series of Avia trucks will complement Ashok Leyland’s medium and heavy duty trucks, in serving the Middle East and Africa markets.

Dheeraj G Hinduja, Chairman of Ashok Leyland, said that the company is aspiring to become one of the top ten global commercial vehicle companies in the next five years.

“The company has expanded its global operations through the acquisition of Czech- based Avia a few years back and is currently developing a new range of light vehicles in association with Nissan. Our joint venture with John Deere for the manufacturing of construction equipment and the controlling stake that we have recently acquired in Optare, UK’s third largest bus manufacturer, are steps aimed to make Ashok Leyland a top ten global commercial vehicle company,” he added.

Dheeraj Hinduja added that the RAK plant will play a vital role in the company’s global operations and said that the export- oriented facility would serve the Middle East, Africa and CIS markets.

R. Seshasayee, Managing Director, Ashok Leyland, said, “This facility is an important building block in our quest to be a global player. Ashok Leyland has enjoyed a dominant position in the popular bus market of the Gulf region and therefore it was only natural for us to set up a manufacturing base closer to our customers.”

Dr. Khater Massaad, CEO of RAKIA, said that the new factory would be a great fillip to the local economy. “It will provide more employment opportunities, world- class vehicles and the `Made-in- RAK’ tag will surely find great acceptance in the local markets which will in turn help the

economy grow.”

Sheikh Omar bin Saqr Al Qasimi, Chairman of RAK Airways, Sheikh Salem bin Sultan Al Qasimi, Chairman of RAK Civil Aviation, M K Lokesh, Indian Ambassador to the UAE, sheikhs and other dignitaries were present at the event.

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