Ashok Leyland, the Hinduja Group flagship in India, together with its associate companies, will increase its stake in the British bus maker, Optare plc, to 75.1% (subject to approval by the shareholders of Optare plc) thanks to a re-financing agreement announced today. The Company had initially acquired 26% stake in Optare in July 2010 as part of a long-term strategic partnership. This move fully integrates Optare into Ashok Leyland’s global strategy for buses.

The re-financing has been achieved by Ashok Leyland facilitating a credit-line to support Optare’s re-banking options and providing a substantially improved working capital facility for the business. Alongside, Ashok Leyland will reach 75.1% of the company’s share capital through placing of shares raising new equity.

Executive comments:

Dheeraj G. Hinduja, Chairman, Ashok Leyland: “We are confident that, together, we can surge ahead with Optare taking advantage of the large opportunities for growth and development we see based on synergy and integration with Ashok Leyland’s bus business.”

Vinod Dasari, Managing Director, Ashok Leyland: “We see this as an important element in realizing our vision of being among the top 5 bus manufacturers globally. Through  leveraging the synergies of the two companies, we are confident that going forward we will be able to accelerate technology sharing, develop future-ready products and substantially and quickly increase our global footprint.”

Jim Sumner, Chief Executive Officer, Optare: “This is great news for Optare’s customers, employees and suppliers and secures stability and the long-term future of the business. The re-banking represents a defining moment in the company’s 3-year turnaround plan which commenced in June 2009.”

“In addition, our recent move to a new factory in Sherburn gives us the capacity and modern assembly facilities necessary to fully capitalise on the additional sales and joint product development opportunities which our deeper partnership with Ashok Leyland will undoubtedly deliver,” he also said.

John Fickling, Chairman, Optare: “Given the global economic challenges we all face, this is a game changing deal for Optare. It ensures that Optare can grow and prosper given the challenging dynamics in an ever-changing market place.”

About the Hinduja Group 

Hinduja Group is an investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors. The Group, founded by Shri P.D. Hinduja in 1914 has activities across three core areas: Investment Banking, International Trading and Global Investments. It also supports charitable and philanthropic activities across the world through the Hinduja Foundation. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure Project Development, Chemicals & Agri business, Energy, Real Estate, Trading and Healthcare. www.hindujagroup.com.

About Ashok Leyland

Ashok Leyland is the flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in India with a turnover of US $ 2.5 billion. With seven manufacturing locations at Chennai, Hosur (three plants), Alwar, Bhandara and Pantnagar (Uttarakhand), the Company has a production capacity of 150,000 vehicles. Ashok Leyland has associate companies in the Czech Republic, the UAE and a joint venture in Sri Lanka, besides exports to over 20 countries worldwide. www.ashokleyland.com

About Optare:

Optare is Britain’s leading maker of advanced low-floor integral buses and employs around 500 people across the group, principally at its new assembly facility in Sherburn in Elmet, Yorkshire. The company produces a wide range of fuel efficient buses of its own integral design. In addition Optare has pioneered its ‘EcoDrive’ programme across all of its products which deliver a wide range of low carbon power options, including hybrid, full electric and dual fuel models. 

The Board of Directors, at their meeting held on November 3^rd, 2011, appointed Dr. V Sumantran as Non-Executive Vice Chairman of Ashok Leyland Limited. 

Besides his responsibilities as Member of the Board, Dr. Sumantran will be responsible for the Business Plan and Results of the Defence and Light Commercial Vehicle business units of Ashok Leyland.

Dr. Sumantran is the Executive Vice-Chairman of Hinduja Automotive Ltd. and has been on the Board of Ashok Leyland since 2008.  Dr. Sumantran has over 26 years of experience in the automobile industry both in India and abroad, in senior management positions.

Mr. Vinod K. Dasari, Managing Director, will be responsible for all other operations of Ashok Leyland, including manufacturing of products as required by Defence and Light Commercial Vehicle business units.

Mr. R Seshasayee, Executive Vice Chairman, will continue to have overall responsibilities for all operations of Ashok Leyland, its subsidiaries and associate companies.

Chennai, September 12th, 2011: Ashok Leyland, the Hinduja Group flagship, today commercially launched DOST – its first entry in India’s fast expanding LCV segment. It also marks the first vehicle to be launched from its Joint Venture with Nissan Motor Company. Competitively priced at Rs. 3.79 lakhs to Rs. 4.39 lakhs (ex-showroom - Chennai), DOST will be sold through a modern dealership network with brand new infrastructure which will grow to 60 main nodes by the end of the current fiscal.

DOST, which has a payload capacity of 1.25T, will be available in three versions with the top-end version featuring air-conditioning, power steering, dual-colour beige-gray trim and fabric seats. The customer will have a palette of three colours to choose from: white, beige and blue. As another ‘first’ in the LCV industry, Ashok Leyland will offer Ready-to-Use Vehicles (RUVs) on the DOST platform for various applications such as Refrigerated containers, Steel containers, Ambulance, Aluminium Fixed Side Decks and Service-At-Site vehicles from the date of launch.

Speaking on the occasion, Dheeraj G. Hinduja, Chairman, Ashok Leyland, said, “With the commercial launch of DOST, Ashok Leyland fills an important gap in its product line up. We had examined the opportunity in this LCV sector for several years. We wanted to make an entry only after we had assured ourselves that we had competitive products as well as a product line expansion strategy. This accelerated since our association with Nissan, who shared our philosophy. I am hopeful that with DOST, Ashok Leyland will write a new chapter of success.”

Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd. said, “DOST embodies our attempt to deliver to the Indian LCV customer, Japanese technology at Indian costs. It is a true reflection of the evolving needs of today’s Indian LCV customer and we are happy that we have been able to manufacture a product that will be attuned to the growing expectations of the LCV market. We have attempted to pack a lot into DOST – increased payload, improved fuel efficiency as well as class-leading performance, comfort and safety, all aimed at offering a uniquely superior experience at a very competitive cost of ownership.”

DOST enters the Small Commercial Vehicle (SCV) market (below 3.5T) which is witnessing a perceptible upward shift in terms of features, performance and payload. The overall LCV market (up to 7.5T) is growing robustly helped by the increase in urbanisation, organized retailing, improved rural connectivity coupled with growth in rural demand. Adding to this are factors like increased focus on the hub-and-spoke model.

The Ashok Leyland DOST is being initially launched in the 4 Southern states (Tamil Nadu, Karnataka, Andhra Pradesh and Kerala), Maharashtra and Gujarat and will be made available across the country in a phased manner as the production ramp up is executed.

For more information on the product please visit www.leylanddost.com or call our toll free number 1800 1022 666.

Ashok Leyland, the flagship of the Hinduja Group, has registered a 6.3% increase in turnover to Rs. 2,495.5 crores (Rs. 2,348 crores) in the quarter ended June 30, 2011.

Sale of vehicles for the quarter stood at 19,277 numbers (21,400 nos.) with domestic volume at 16,738 nos. (19,460 nos.) and international operations contributing 2,539 nos. (1,940 nos.). The drop in domestic volume was primarily in the South, the Company’s stronghold for long, which also resulted in a loss of overall market share.

The Company’s EBIDTA at Rs. 244.6 crores is marginally better than in the previous year (Rs. 234.8 crores) despite Employee Costs being higher at Rs. 249.7 crores (Rs. 202.5 crores). Depreciation was higher by 37.7% at Rs. 84.7 crores (Rs. 61.5 crores). Financial Expenses rose to Rs. 53.3 crores (Rs. 31.6 crores) on the back of an increase in working capital which is now being brought under control.

The Company’s Profit before Financial Expenses and Exceptional Item was at Rs.164.1 crores (Rs. 178.7 crores). The Company’s Profit from Ordinary Activities before Tax was at Rs. 110.7 crores (Rs. 147.0 crores).

Net profit was at Rs. 86.3 crores as against Rs. 122.6 crores for the corresponding quarter in the previous year.

“After the robust growth of 2010-11, the first quarter of this fiscal has seen a significant moderation,” is how Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, put it. “The rise in cost of ownership due to spiraling input costs, the rise in fuel prices, hardening interest rates and a fall in freight availability all contributed to this moderation. While our domestic performance was subdued, the over 30% jump in our exports helped shore up our numbers,” he added.

Speaking about the quarter ahead, he said, “We are cautiously optimistic of the coming months because the fundamentals remain strong and the India growth story continues. We have the launch of DOST, the first light commercial vehicle from the Ashok Leyland-Nissan stable and the construction equipment products in association with John Deere which will make the coming quarter interesting,” he concluded.

Ashok Leyland, the Hinduja Group flagship, has registered a sales turnover of Rs 11,117.71 crores during 2010-11 compared to Rs 7,244.71 crores in the previous fiscal reflecting a rise of 53.5%. Net profit too rose by 49.0% to touch Rs 631.30 crores (Rs 423.67 crores).

The Company recorded the highest volumes both on the domestic and the international operations fronts. While domestic volumes jumped 45% to touch 83,800 vehicles as against 57,947 vehicles for the previous fiscal, exports surged by 72% to reach 10,306 vehicles (5,979 vehicles).

“FY 2010-11 has indeed been a watershed year for Ashok Leyland,” is how Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, described the year. “Apart from recording the highest domestic and exports volumes, our production hit an all-time high, we introduced the highest number of products into the market, the ramp-up at our Pantnagar plant was the fastest and our customer touch points saw the highest increase in numbers very much in consonance with our business strategy of customer-centricity. Truly it was a year of records.” he added.

This commendable performance at the market place translated into all-round market share gains for the Company. In the M&HCV segment, Ashok Leyland’s share rose by 2.4 percentage points to reach 26%. Gains were recorded in all the various product segments as well as in all the regions with the Company maintaining its leadership position in the passenger segment.

The Company’s de-risking strategy of developing non-cyclical businesses paid rich dividends with the Spare Parts and Defence posting impressive growth of 20% over last year. Another note-worthy aspect was the performance of the Power Solutions Business which was able to post decent numbers by garnering business outside the Telecom sector that had collapsed from Rs. 243 crores to almost next to nothing.

About the prospects for the current year, Mr. Dasari said, “2011-2012 is going to be a year of growth and consolidation for Ashok Leyland in quest of our vision to be among the global top 10 in trucks and top 5 in buses. The launch of ‘DOST’ from the Ashok Leyland-Nissan stable will make the Company a full range CV player. On the exports front, our focus will be on consolidating our presence in the SAARC markets while at the same time target the growing markets of Asia, Africa and CIS. Rising interest costs and diesel prices are going to be growth dampeners but since the fundamentals remain strong and the economy continues to be on a growth trajectory, we are cautiously optimistic of the future”.

Chennai, April 4th, 2011: Ashok Leyland, the Hinduja Group flagship, has closed the Financial Year ended March 31st, 2011 by posting all-time high sales and production numbers. The annual sales volume of 94,105 vehicles (63, 926 vehicles) was up 47%. While the domestic market accounted for 83,799 vehicles (57,947 nos.) up 45%, exports touched 10, 306 vehicles (5,979 vehicles) up 72%.

The March sales figures were also an all-time high for the Company in a single month with total vehicle sales of 12,168 nos., reflecting a 21% jump. Domestic sales rose 22% at 11,312 nos. and exports increased 12% to 856 vehicles.

Total production for the year also was the highest ever at 95,337 vehicles (64,673 vehicles) mirroring an increase of 47%.

Ashok Leyland, the flagship of the Hinduja Group, significantly expanded their operations in Punjab and Himachal Pradesh with the inauguration of four dealership outlets – CM Automobiles (Mohali), TR Enterprises (Hoshiarpur), Grover Motors (Moga) and CM Associates (Kangra, Himachal Pradesh). With this, the Company now has eight dealership outlets in Punjab along with 126 Service Bays and six dealership outlets in HP. The Mohali dealership outlet also marks the Company’s 350th customer touch point across the country.

These represent significant steps by Ashok Leyland towards the development of the Punjab and HP markets with customers now assured of after sales support across the length and breadth of both these states. Speaking at the inauguration of the Mohali dealership outlet, Mr. R. N. Rao, Special Director – Sales & Marketing, Ashok Leyland, said, “Punjab and HP have been focus markets for us which must be evident in this marked expansion of our network in these markets. Over the years, we have striven to understand the specific requirements of customers in this region and provide vehicles that are best suited for them which is reflected in the 5.5% growth in our volumes in Punjab particularly. With these initiatives, we hope to substantially enhance our service levels,” he added.

“Another measure of our service levels is the TatkaAL promise of reaching a customer within 4 hours anywhere on the Golden Quadrilateral or on the North-South, East-West corridors with restoration in 48 hours and in case of any delay, we are ready to pay a penalty of Rs. 1,000 per day,” elaborated Mr. Rao. The Company has trained and developed over 16,000 mechanics and nearly 5,400 retailers across the country.

During all the four inauguration events, the Company displayed their new product range and Mr. Rao handed over keys to customers.

Speaking specifically about the Punjab market with its large agrarian base, Mr. Rao explained that it was essentially a haulage market for which Ashok Leyland had winner products in the 4x2 and 6x2 segments fitted with the fuel efficient ‘H’ series engines that were BSIII compliant. These models are also offered with inline Fuel Injection Pumps (FIPs) that have inherent mechanic-friendly features resulting in low operating costs.

With the ramping up of the world-class manufacturing facility at Pantnagar, Uttarakhand, the Company is better placed to promptly and adequately meet the demands from these markets.

Apart from the TatkaAL promise, Ashok Leyland’s comprehensive Driver Care Programme is going a long way in improving the lot of commercial vehicle drivers in the country and thereby addressing the growing industry concern of a dearth of good, trained drivers. The Company is the first auto major to have two driver training institutes at Namakkal (Tamil Nadu) and Burari (near Delhi) with three more on the anvil at Khaital (Haryana), Chhindwara (Madhya Pradesh) and Jaipur (Rajasthan).