December 1959, has been circulated

to you, and wit h your permission, I

shall take them as read.

You r Company has made steady

progress in its manufacturing programme durin g the year under review. This progress has been in

two directions, both of which are

essential. In accordance wit h the

understanding which we have wit h

the Government of India , the Company has to maintain progress in

the development of indigenous manufacture, so replacing the foreign

and imported content of the vehicles

manufactured. It has also an equal

duty to increase its production so

as to meet the growin g demands for

the vehicles of your Company.

These two aspects of manufacture

require a continuous expansion of

the plant and machinery and of the

buildings whic h must bouse them.

There is a further requirement

whic h is as essential as either of

the above, 'and that relates to the

recruitment and trainin g of skilled

labour.
EXPANSION OF PLANT

The first phase of our buildin g

programme was virtually completed

in 1958 and was referred to by me

at our last meeting. But we could

not afford to stand still and 1959

saw the installation of additional

plant and machinery required to

complete the machining of engine

components, to provide to some extent for the early production of the

rear axle and gearbox and to enable

us fully to equip our own tool room

as a preliminary to producing our

own Jigs, Tools and Fixtures. Al l

these activities necessarily involved

an increase in the number of employees from 95 1 at the end of 1958

to 1473 at the end o f 1959. The

increase in the production of the

Leyland Comet chassis durin g the

year rellected the increase in the

demand for the Comets and the

popularity of this vehicle. In the

year 1959, the. increase in the output of these vehicles has been 2½

limes the output in .1956, but even

this increase has been totally inadequate to meet the requirements of

the demands as they stand in your

order books. The Comet has established a reputation for good performance at low cost per mile, which

has enabled your Directors to plan

with confidence for an output far in

excess of your Company's origina l

conception. Al l motor manufacturers in this country have, however,

been faced wit h difficulties which

they had not anticipated before and

which to a certain extent have reacted on the enthusiasm wit h which