According to ALL's executive director-finance T Anantha Narayanan, the entire repayment of debentures would be met out of internal accruals and the company would not be going for external funding for the purpose. Debenture series VIII, XIV, XIX, XX, XXI and XXII are coming up for redemption this year.

Though the company officials feel that it is too early to predict any growth rate for the current year, they expect a reasonable growth to happen and this seems to have pushed the company to restrict its borrowings for capex only. ALL's capital expenditure would be towards research & development and transmission equipment.

Analysts expect the commercial vehicle industry to grow at around 5 to 7 per cent this year compared to 34 per cent last year. The lower growth rate is basically on account of the fact that industrial upturn or infrastructural development has not been on the expected lines while the agricultural growth has declined rather sharply.

The drought, they add, will not have much of an impact as normal monsoon has been predicted for the coming year. The shortfall, if any, in certain region on account of water scarcity would be more than made up by increased demand for tankers and other trucks for relief work. The year 1999-2000 saw ALL growing by 27.30 per cent. The company during the year sold 37,859 vehicles which is only second to its highest-ever sales of 43,352 units in 1996-97.