Topic of Study: Ashok Leyland position in Indian Commercial Vehicle Industry About the Company Ashok Leyland, the

flagship of the Hinduja Group is one of the largest commercial vehicle manufacturers in India with a turnover of Rs 12,841 crores in 2011-12. The company has consistently delivered profits to its stake-holders since its inception. Founded in 1948, the company is the second largest manufacturer of commercial vehicles with proven expertise in manufacturing truck, bus, and emergency vehicles. Business Situation The commercial vehicle market is expected to reach 1.6 million units in the next 5 years with increase in infrastructure projects and urbanization. The active interest shown by global players like Bharat Benz, Volvo, and Beiqi Foton is also expected to drive the industry. For 2011-2012 the sales went up by 18.2% with 8,09,532 units sold against 6,84,905 units in 2010-2011. Though the industry posted weak sales in the first half of the fiscal year it managed to partially recover. During the first 8 months of the financial year 2011-2012, the domestic sector grew at 20% year-on-year basis (ICRA, 2011). However rise in interest rates, contraction in the Industrial output, and rise in vehicle prices have grappled the industry. With freight rates remaining stagnant the fleet operators who form the major chunk of business have deferred their capacity addition and so the manufacturers have many challenges in the near future. Intended Work The financial performances of major players in industry for the financial year 2011-2012 are shown below: Name Tata Motors Ashok Leyland Eicher Motors Market Cap. 78,817 6,625.08 5,401.59 Sales Turnover 54,306.56 12,841.99 670.95 Net Profit 1,242.23 565.98 124.55 Total Assets 35,912.05 6,621.14 557.10

(www.moneycontrol.com) All figures in Rs.Cr

From the above table, it is evident that Net Profit of Tata Motors is more than twice of Ashok Leyland. In spite of presence in the industry for 60 years Ashok Leyland is still trailing Tata Motors in the second place. Keeping financial position and current business situation in mind we wish to design a strategy that would help in making Ashok Leyland clinch the number 1 position in the next 2-3 years. We believe that, Strategy is a well defined roadmap of an organization and we wish to create one. Intended References 1. Competitive Strategy - Techniques for analyzing industries and competitors - By Michael E. Porter 2. www.managementstudyguide.com 3. www.icra.in