P.V.S.

Mahesh, L17AME559, R.NO. 163

A
Case study
Of

ASHOK LEYLAND LTD.

An Indian Automobile Company

Contents

INTRODUCTION
HISTORY
MANAGEMENT
ORGANIZATION STRUCTURE
MANUFACTURING UNITS
 P.V.S. Mahesh, L17AME559, R.NO. 163

INTRODUCTION:
Ashok Leyland is an Indian automobile company headquartered
in Chennai, India. It is owned by the Hinduja Group.[3]Founded in 1948, it is
the second largest commercial vehicle manufacturer in India, fourth largest
manufacturer of buses in the world and 10th largest manufacturer of trucks
globally. Operating nine plants, Ashok Leyland also makes spare parts and
engines for industrial and marine applications. It sold approximately 140,000
vehicles (M&HCV + LCV) in FY 2016. It is the second largest commercial
vehicle company in India in the medium and heavy commercial vehicle
(M&HCV) segment, with a market share of 32.1% (FY 2016). With passenger
transportation options ranging from 10 seaters to 74 seaters (M&HCV =
LCV), Ashok Leyland is a market leader in the bus segment. In the trucks
segment Ashok Leyland primarily concentrates on the 16 to 25-ton range.
However, Ashok Leyland has a presence in the entire truck range, from 7.5 to
49 tons.

HISTORY:

Ashok Motors[edit]
Ashok Motors was founded in 1948 by Raghunandan Saran. He is an Indian
freedom fighter from Punjab.[4] After Independence, he was persuaded by India's
first Prime Minister Nehru to invest in a modern industrial venture. Ashok Motors
was incorporated in 1948 as a company to assemble and manufacture Austin cars
from England, and the company was named after the founder's only son, Ashok
Saran. The company had its headquarters in Rajaji Saalai, Chennai (then Madras)
with the plant in Ennore, a small fishing hamlet in the North of Chennai. The
company was engaged in the assembly and distribution of Austin A40 passenger
cars in India.
Under Leyland[edit]
Raghunandan Saran had previously negotiated with Leyland Motors of England for
assembly of commercial vehicles as he envisioned commercial vehicle were more in
need at that time than were passenger cars. The company later under Madras State
Government and other shareholders finalised for an investment and technology
partner, and thus Leyland Motors joined in 1954 with equity participation, changing
the name of the company to Ashok Leyland. Ashok Leyland then started
manufacturing commercial vehicles. Under Leyland's management with British
expatriate and Indian executives the company grew in strength to become one of
India's foremost commercial vehicle manufacturers.
The collaboration ended sometime in 1975 but the holding of British Leyland, now a
major British Auto Conglomerate as a result of several mergers, agreed to assist in
 P.V.S. Mahesh, L17AME559, R.NO. 163
technology, which continued until the 1980s. After 1975, changes in management
structures saw the company launch various vehicles in the Indian market, with many
of these models continuing to this day with numerous upgrades over the years.
Under Iveco and Hinduja partnership[edit]
In 1987, the overseas holding by Land Rover Leyland International Holdings Limited
(LRLIH) was taken over by a joint venture between the Hinduja Group, the Non-
Resident Indian transnational group and Iveco, part of the Fiat Group.
Hinduja Group[edit]
In 2007, the Hinduja Group also bought out Iveco's indirect stake in Ashok Leyland.
The promoter shareholding now stands at 51%. Today the company is the flagship
of the Hinduja Group, a British-based and Indian originated trans-
national conglomerate.

MANAGEMENT:

Board of Directors-
Mr. Deeraj G. Hinduja
Dr. Andrew C Palmer
Dr. Andreas H Biagosch
Mr. Jean Brunel
Mr. Jose maria Alapont
Mrs. Manisha Girotra
Mr. Sanjay K. Asher
Mr. Gopal mahadevan

 P.V.S. Mahesh, L17AME559, R.NO. 163

Departments: -
Audit Committee
Mr. Sanjay K. Asher (Chairman)
Mr. Jean Brunol
Mr. Jose Maria Alapont

Stakeholders relationship Committee

Mr. Sanjay K. Asher (Chairman)
Mr. Dheeraj G. Hinduja
Ms. Manisha Girotra

Nomination and Remuneration Committee

Mr. Dheeraj G. Hinduja
Mr. Jose Maria Alapont
Ms. Manisha Girotra

Corporate Social Responsibility Committee

Mr. Dheeraj G. Hinduja (Chairman)
Ms. Manisha Girotra
Mr. Sanjay K. Asher

Technology Committee
Dr. Andrew C Palmer (Chairman)
Dr. Andreas H Biagosch
Mr. Jean Brunol
Mr. Jose Maria Alapont

Investment Committee
Mr. Dheeraj G Hinduja (Chairman)
Dr. Andreas H. Biagosch
Mr. Jean Brunol
Mr. Jose Maria Alapont

Risk Management Committee

Dr. Andreas H. Biagosch (Chairman)
Mr. Sanjay K Asher
Mr. Gopal Mahadevan

Secretary for all the Committees.

Mr. N Ramanathan
 P.V.S. Mahesh, L17AME559, R.NO. 163

Organization structure: -
 P.V.S. Mahesh, L17AME559, R.NO. 163

MANUFACTURING UNITS : -

India

Ashok Leyland factory near Ennore as seen from a train

• Ennore, Tamil Nadu in North Chennai (established 1948) – trucks, buses, engines,
axles etc.
• Hosur, Tamil Nadu in Krishnagiri District (established 1980) – three adjacent
plants (Hosur-1, Hosur-2, CPPS) for trucks, special vehicles and power units
• Alwar, Rajasthan (established 1982) – bus manufacturing unit
• Bhandara, Maharashtra (established 1982) – gearbox unit
• Pantnagar, Uttarakhand (etsb. 2010) – 75,000 annual capacity greenfield unit for
new generation platforms and cabs
• Sengadu Village, Kanchipuram District in Tamil Nadu (etsb. 2008) – technical and
production facility for Ashok Leyland Defence Systems; another separate
technical center for Nissan Ashok Leyland vehicles

Europe
• Sherburn-in-Elmet, England – Optare Bus

Middle East
• Ras Al Khaimah, UAE [established 2011] – bus manufacturing facility – joint
venture between Ashok Leyland and Ras Al Khaimah Investment Authority
(RAKIA) in UAE

Technical Centre
Ashok Leyland's Technical Centre, at Vellivoyalchavadi (VVC) in the outskirts of
North Chennai near Minjur, is a state-of-the-art product development facility, that
apart from modern test tracks and component test labs, also houses India's one and
only six poster testing equipment.

Former manufacturing units

Letnany in Prague, Czech – Avia plant, closed in 2013