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December 2011

Saturday, December 24, 2011
Unique driver challenge programme underscores fuel efficiency of 3116iL - Mileage as high as 5.57 kmpl achieved
Published From:
Vijayawada
Ashok Leyland, the Hinduja Group flagship, conducted a unique driver challenge programme in the State, aimed at promoting responsible driving practices. Called ‘Super Driver Challenge’, this involved...

Ashok Leyland, the Hinduja Group flagship, conducted a unique driver challenge programme in the State, aimed at promoting responsible driving practices. Called ‘Super Driver Challenge’, this involved ‘mileage contests’ across 40 locations in the State to determine the best commercial vehicle drivers. Nearly 800 drivers participated in the ‘challenge’, held over 12 days and culminating in a grand finale that crowned three ‘Super Drivers’.

The Company’s flagship product 3116iL helped the driver challenge winner achieve as high as 5.57 kmpl, with more than 20 drivers (of the final 40) going beyond the 5 kmpl mark. Across the 40 hubs, the average mileage achieved was 4.8 kmpl.

At a grand ceremony held here today, Mr. Vinod K Dasari, Managing Director, Ashok Leyland, gave away the awards and expressed happiness at the best-in-class mileage levels achieved by the drivers. He also reiterated the Company’s emphasis on driver education and care. “Our driver care programme works at three levels. At the first level, it is to do with the product itself, thinking of every minute detail that will add to the safety and comfort of the driver. At the second level is the emotional connect, be it through health and safety camps for drivers or events such as these that respects and cares for them as a community. And finally, through our comprehensive driver training institutes well established in Namakkal and Burari and on the anvil in three other states”, he said. 

He further added that Ashok Leyland would introduce specific health and education schemes for drivers and their children in the state.

Mr Krishna Kaushik, Regional Manager – Andhra Pradesh, Ashok Leyland, said there was a tremendous response from the driver community for the ‘Super Driver Challenge’. “3116iL has been widely accepted by the driver community for its fuel efficiency, rigidity and reliability. I am sure that this initiative has further given a fillip to their confidence in the product, with some record ‘mileages’ being achieved by drivers”, he pointed out. He also mentioned that the learnings from the programme would help the drivers with their day-to-day operations.

In recognition of their efficient driving, three winners were each awarded a bike and Rs one lakh, Rs 50,000 and Rs 25,000 respectively. Ashok Leyland also recognized 40 hub winners with a driver kit.

Tuesday, December 20, 2011
Ashok Leyland increases stake in Optare plc to 75.1%
Published From:
Chennai
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...

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. 

November 2011

Tuesday, November 22, 2011
The Joint Venture between Ashok Leyland and John Deere enters the Indian construction equipment business
Published From:
Chennai
Ashok Leyland, the flagship of the Hinduja Group, and John Deere announced their entry into the rapidly growing Indian construction equipment business through their 50:50 joint venture, with the...

Ashok Leyland, the flagship of the Hinduja Group, and John Deere announced their entry into the rapidly growing Indian construction equipment business through their 50:50 joint venture, with the launch of their first product, the 435 Backhoe Loader. The products will be marketed under the brand LEYLAND DEERE.

The new brand symbolizes the coming together of two strong partners, each bringing to the association their unique individual strengths and competencies. John Deere brings in their advanced technical knowhow and vast experience in the global construction equipment space while Ashok Leyland lends in-depth knowledge of the Indian market, proven expertise in manufacturing, sourcing and distribution, to this strategic partnership.

A product set to re-define benchmarks

The first product from this combine – the LEYLAND DEERE 435 Backhoe Loader (BHL) – has been designed to transform the nature of the construction equipment business in India as well as re-define the way construction equipment products are perceived and used.

Exceptionally well-engineered and feature-rich, the 435 BHL will deliver superior value to the ever-evolving construction equipment customer by addressing the critical considerations of lower operating cost, higher productivity and greater uptime. It is rugged in structure, powered by an Ashok Leyland engine of proven pedigree from the ‘H’-Series platform and replete with USPs like power shift transmission, best in class cabin with larger space and higher visibility, higher breakout forces and greater dig depths. 

 
To ensure that customers get higher uptime, the LEYLAND DEERE 435 BHL will be supported by an innovative customer care package called the C.A.R.E. Programme which will be delivered through the efficient LEYLAND DEERE channel network developed. The C.A.R.E. Programme will include an extended warranty of a year after the first year of warranty, committed restoration time for the equipment and regular and periodic engineer visits to the customer during warranty period and also an insurance cover of Rs. 2 lakhs for the customer’s operator. 
 
State-of-the-art manufacturing facilities
 
The 435 BHL is being manufactured at LEYLAND DEERE’s brand new facility at Gummidipoondi, 50 kms from Chennai. This facility incorporates globally-benchmarked manufacturing processes like robotic welding, CNC cutting, state-of-the-art paint shop to ensure the highest standards of product reliability and durability supported by international standard quality processes and systems. 
 
Executive comments
 
Dr. V. Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Company Ltd. and Executive Vice-Chairman, Hinduja Automotive Ltd.: 
 
“This JV marks a marriage of experience with expertise, global vision with local relevance, technological leadership with market presence. Cognizant of India’s huge appetite for construction and infrastructure development, we are well-placed and well-equipped to tap the huge potential that exists. While we seek to redefine the benchmarks with our first offering, we are well on our way to both extending our range with additional products as well as scaling up our operations beyond this start.” 
 
Mr. Michael J. Mack, President, Worldwide Construction and Forestry Division, Deere & Co.: 
 
“Our first product represents a triumph for the joint venture in terms of collaborative development. We have used our intimate knowledge of ground realities and specific customer requirements as touch stones while engineering the product which, we believe, will be well-accepted in the Indian market. The single-minded focus, constancy of purpose and perfect understanding between the partners have held the joint venture in good stead and positions us well for the exciting journey ahead.”
 
About John Deere
 
Deere & Company (NYSE: DE) is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land - those who cultivate, harvest, transform, enrich and build upon the land to meet the world’s dramatically increasing need for food, fuel, shelter and infrastructure. Since 1837, John Deere has delivered innovative products of superior quality built on a tradition of integrity.  For more information, visit John Deere at its worldwide website at www.JohnDeere.com.
 
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 2010-11 turnover of US $ 2.5 billion. The Company has seven manufacturing locations at Chennai, Hosur (three plants), Alwar, Bhandara and Pantnagar (Uttarakhand) and a production capacity of 150,000 vehicles. Ashok Leyland has associate companies in the Czech Republic and the UAE and a joint venture in Sri Lanka, besides exports to over 30 countries worldwide. www.ashokleyland.com
Monday, November 14, 2011
Ashok Leyland to supply 700 Cluster CNG buses to Delhi Initial lot of 50 buses flagged off
Published From:
New Delhi
Ms Sheila Dikshit, Chief Minister of Delhi, flagged off 50 Ashok Leyland CNG buses (BS4) to ply in identified clusters in the city, at a function held in the Capital today attended by dignitaries...

Ms Sheila Dikshit, Chief Minister of Delhi, flagged off 50 Ashok Leyland CNG buses (BS4) to ply in identified clusters in the city, at a function held in the Capital today attended by dignitaries including Mr. Vinod K Dasari, Managing Director - Ashok Leyland. These front-engine, semi-low floor buses form the initial lot of a total of 700 such buses to be supplied by the Hinduja Group flagship Company in the coming months. 

Following the Delhi Government’s decision to award the 17 identified clusters (650 bus routes) of the city to private operators under the DIMTS (Delhi Integrated Multi-modal Transit System), Ashok Leyland demonstrated the performance and cost benefits of the front engine, semi-low floor arrangement – a pioneering combination introduced by the Company in 2006 in Mumbai. 

This unique and successful technology, combined with a comprehensive bundle of service products helped Ashok Leyland win the contract from M/s A B Grain Private Limited, a professionally managed company, which has been awarded the contract to run Semi Low Floor buses in clusters 3, 4 and 5 by the Government this year.

Speaking at the occasion, Vinod K Dasari, MD-Ashok Leyland said, “It is a matter of great pride for all of us at Ashok Leyland to have partnered Delhi’s remarkable strides in public transport, right from the introduction of CNG buses or the more recent Ultra Low Entry (ULE) models. DIMTS is an exemplary model for a burgeoning megapolis like Delhi and I am confident that the semi-low floor buses we are offering are tailor-made to the specific requirements of this path-breaking initiative.”

The fully built buses are being manufactured at Ashok Leyland’s Alwar plant in Rajasthan. Delivery would be done in a phased manner.

Thursday, November 3, 2011
Ashok Leyland’s Q2 revenue at Rs 3,095 crores, up 14% - EBITDA up 8.6%
Published From:
Corporate Office
Hinduja Group flagship Ashok Leyland has registered a 14% increase in turnover at Rs. 3,094.6 crores during the second quarter of the current fiscal against Rs. 2714.0 crores for the corresponding...

Hinduja Group flagship Ashok Leyland has registered a 14% increase in turnover at Rs. 3,094.6 crores during the second quarter of the current fiscal against Rs. 2714.0 crores for the corresponding quarter of 2010-11.Sale of vehicles for the quarter stood at 23,659 numbers (24,589 nos.) with domestic volumes at 20,429 nos. (22,239 nos.). International operations contributed 3,230 nos. (2,350 nos.) registering a rise of 37.4%. Though there was a slight drop in sales volume, the Company’s EBITDA or gross operating margin for the quarter was up 8.6%, at Rs. 331.2 crores (Rs 304.8 crores) thanks to a better product mix and better cost control resulting in higher contribution.Financial Expenses were higher at Rs 62.7 crores (Rs 39.5 crores) and so also was depreciation at Rs 85.9 crores (Rs 64.1 crores), Profit Before Tax stood at Rs. 192.9 crores (Rs 207.5 crores).Net Profit for the quarter stood at Rs. 154.1 crores (Rs. 167.1 crores). 

Thursday, November 3, 2011
Dr. Sumantran appointed Non-Executive Vice Chairman of Ashok Leyland
Published From:
Corporate Office
The Board of Directors, at their meeting held on November 3rd, 2011, appointed Dr. V Sumantran as Non-Executive Vice Chairman of Ashok Leyland Limited.  Besides his responsibilities as Member of the...

The Board of Directors, at their meeting held on November 3rd, 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.

October 2011

Monday, October 24, 2011
Ashok Leyland spreads its network in Maharashtra
Published From:
Corporate Office
Aurangabad / Omarga, (Maharashtra), October 24th 2011: Ashok Leyland, the flagship Company of the Hinduja Group, expanded its operations in Maharashtra with the inauguration of two new dealership...

Aurangabad / Omarga, (Maharashtra), October 24th 2011: Ashok Leyland, the flagship Company of the Hinduja Group, expanded its operations in Maharashtra with the inauguration of two new dealership outlets - Pagariya Auto in Aurangabad and Sagar Motors in Omarga. Spread over 40,000 sq ft and equipped with 10 service bays, Pagariya Auto is equipped with modern tools, computerized system and infrastructure as is Sagar Motors which is set over 75,000 sq ft with 8 service bays. With this, Ashok Leyland increases its network reach to 383 locations, pan India and 40 locations in Maharashtra. 

“With one of the largest road networks, Maharashtra plays a significant role in freight movement in India and our intention is to substantially increase our foot print in the State to avail of the ensuing opportunities,” said Mr. Rajive Saharia, Executive Director, Marketing, Ashok Leyland said, “Not only is Aurangabad one of the fastest developing cities in Asia and well connected by roads with the rest of the country, but with more and more MNCs setting up manufacturing bases, this region is bound to grow rapidly. Omerga, on the other hand, presents opportunities of a key emerging trade hub and goods-transport capital for the region,” he added.

With greater movement of agricultural, cotton and industrial goods, there has been increased demand for Ashok Leyland’s flagship models; 3116iL, 2516iL in the multi-axle range and 1212 in the ICV range that have been widely accepted by customers for their rigidity, performance and low operational cost. Mr. Saharia further elaborated on the Company aggressive plans to expand their network into Bihar, Madhya Pradesh, Uttar Pradesh, Punjab, Rajasthan and Haryana and said that they were well placed to deliver best-in-class products to their customers backed by an innovative service care package. The Company offers the TatkaAL promise of reaching a customer anywhere on the Golden Quadrilateral or on the North-South, East-West corridors within 4 hours, restoration of vehicle in 48 hours with a penalty clause of Rs. 1,000 per day in case of any delay.  The Company has trained and developed over 16,000 mechanics and nearly 5,400 retailers across the country of which 1,952 mechanics and 814 retailers are in the region.
 
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 four more on the anvil at Haryana, Madhya Pradesh, Orissa, Rajasthan and Bangalore.
 
For further information please contact: Mr. Vinod Chacko – Corporate Communications, Ashok Leyland Ltd. Ph: 044 2220 6095

September 2011

Thursday, September 29, 2011
Ashok Leyland bags order for 723 vehicles for Tanzania Order worth over USD 36 million
Published From:
Corporate
Chennai, September 28, 2011: Hinduja Group flagship, Ashok Leyland, announced their entry into the Tanzanian market by bagging an order for 723 trucks, buses and special application vehicles. The...

Chennai, September 28, 2011: Hinduja Group flagship, Ashok Leyland, announced their entry into the Tanzanian market by bagging an order for 723 trucks, buses and special application vehicles. The order that is worth around USD 36.56 million has been received from the Government of Tanzania. These vehicles will be used for logistical purposes by the government and the Company will complete deliveries by end of the current fiscal.

Commenting on the order, Mr. Vinod K Dasari, Managing Director, Ashok Leyland, said: “This is a very significant development and very much a part of our strategy to significantly increase our global footprint, more particularly, in the robustly growing African markets. Tanzania is an important market for us and this order underscores the reliability of our products. It also highlights our ability to manufacture application based vehicles specific to the requirements of our customers. This closely follows other orders received from prominent institutional customers in West Africa.”

Ashok Leyland has been aggressively expanding its network in the African market with network offices in Nigeria and Ghana in the West; Malawi and Mozambique in the South; Kenya and Tanzania in the East, apart from their offices in South Africa and Egypt. In 2010-2011, the Company’s export numbers grew by 72% to touch 10,306 nos.

Monday, September 12, 2011
Ashok Leyland enters the Light Vehicle segment Launches DOST, starting at Rs. 3.79 Lakhs A modern Dealer Network established
Published From:
Corporate Office
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...

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.ashokleylandlcv.com or call our toll free number 1800 1022 666.

August 2011

Thursday, August 18, 2011
Ashok Leyland spreads its network in Uttar Pradesh Opens new dealership in Varanasi; 378th Customer touch point
Published From:
Corporate Office
Varanasi, August 18th 2011: Ashok Leyland, the flagship of the Hinduja Group, expanded their operations in Uttar Pradesh (UP) with the inauguration of a new dealership at Varanasi. The new dealership...

Varanasi, August 18th 2011: Ashok Leyland, the flagship of the Hinduja Group, expanded their operations in Uttar Pradesh (UP) with the inauguration of a new dealership at Varanasi. The new dealership, M/s. Motion Vehicles (P) Ltd., conveniently located on NH 56, Jaunpur Road, Varanasi, set over 30,000 sq ft, is equipped with 3S (Sales, Service and Spares) facility having modern tools, equipments and infrastructure. This will be the Company’s 25th customer touch point in Uttar Pradesh.

Speaking at the occasion, that marks another significant step by Ashok Leyland towards increasing its customer reach in the Northern market, Mr. Rajive Saharia, Executive Director, Marketing, said, “Uttar Pradesh is one of the top 5 commercial vehicles markets in India. Hence, a very important one for us too in keeping with our overall strategy of increased focus on North India reflected in the setting up of the state-of-the-art plant at Pantnagar. Further, the location of Varanasi as a vital link in the supply chain route linking north India to the east made it imperative for us to establish our presence here. The Company will be strengthening its foothold in UP by setting up bigger outlets in Lucknow, Gorakpur and Chopan along with five more customer touch points being added in the next two months.”

“With UP having the largest road network in the country, freight movement of market loads, construction materials like blue metals & coal are on the rise. Our flagship models, 3116iL and 2516iL, in the multi-axle range have been widely accepted by customers for their rigidity, performance and low operational cost. As part of our network expansion plan, we are aggressively spreading our reach in the neighboring states like Bihar, Madhya Pradesh, Punjab, Rajasthan and Haryana. We are well placed to deliver best-in-class products to our customers backed by an innovative service care package,” elaborated, Mr. Saharia.

The Company offers the TatkaAL promise of reaching a customer anywhere on the Golden Quadrilateral or on the North-South, East-West corridors within 4 hours, restoration of vehicle in 48 hours with a penalty clause of Rs. 1,000 per day in case of any delay. The Company has trained and developed over 16,000 mechanics and nearly 5,400 retailers across the country of which 1,952 mechanics and 814 retailers are in the region.

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 four more on the anvil at Haryana, Madhya Pradesh, Orissa and Rajasthan.

July 2011

Friday, July 22, 2011
Ashok Leyland and Nissan celebrate Job One of DOST - First product rolls out from new lines in the Hosur facility - Commercial launch scheduled this quarter
Published From:
Corporate Office
Hosur, India, July 22, 2011: The Hinduja Group flagship, Ashok Leyland and Nissan Motor Company today rolled out their first product, the Ashok Leyland DOST, from Ashok Leyland’s Hosur facility. The...
Hosur, India, July 22, 2011: The Hinduja Group flagship, Ashok Leyland and Nissan Motor Company today rolled out their first product, the Ashok Leyland DOST, from Ashok Leyland’s Hosur facility. The first production vehicle was symbolically driven out from the dedicated newly commissioned Light Commercial Vehicle line by Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd. and Dr. Andy Palmer, Executive Vice President, Nissan Motor Company Ltd & Chairman, Ashok Leyland Nissan Vehicles Ltd. The commercial launch of Ashok Leyland DOST is scheduled later this quarter through a new exclusive dealer network.
 
The DOST:
 
DOST is a brand new offering, which in comparison to the products presently available in the SCV (Small Commercial Vehicle) segment, offers its users a new experience and contemporary technology. Designed for a higher payload of 1.25 Tonnes, it is equipped with a state-of-the-art 55 hp, 3 cylinder 1.5 litre CRDI engine. This brand-new engine is tuned for fuel economy as well as the driveability and gradeability required for Indian roads, thanks to the Common Rail technology and a substantial torque of 150Nm. Completing the powertrain package is a five-speed manual gear box. DOST’s practicality is further increased by its tight turning circle radius of just 4.8 m, designed to easily negotiate both congested city roads and narrow rural lanes.
 
The Euro-look cab is roomy, comfortable with superior ergonomics and incorporates an in-built safety structure. The unique Front Transverse leaf suspension blends superior ride quality with high durability. The Load Sensing Proportioning Valve (LSPV) technology measures the weight on the load body and applies the brake force accordingly to ensure stable braking irrespective of whether the vehicle is fully loaded or empty.
 
DOST 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 also have a palette of three colours to choose from: white, beige and blue.
 
Further details, including the price range will be unveiled closer to the commercial launch date. Also, visit www.ashokleylandlcv.com for more information.
 
Executive Comments:
 
Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd.:
 
“This is a very important milestone in the journey of the Ashok Leyland – Nissan Joint Venture. DOST is the first physical manifestation of our association and a matter of great pride for us as this marks the fruition of a project that started effectively in 2008. The Indian SCV customer is fast evolving and becoming increasingly demanding, apart from fuel efficiency and durability, about other attributes like driveability, power, comfort, safety, loading capacity and even styling and we are confident that DOST has been well engineered to offer him a new level of experience hitherto unavailable in India. We have endeavoured to listen carefully to Indian SCV customers and offer them, with the DOST, our best product.”
 
Dr. Andy Palmer, Executive Vice President, Nissan Motors Company and Chairman, Ashok Leyland Nissan Vehicles Ltd.:
 
“Ashok Leyland and Nissan have remained faithful to the vision of joining forces to create value for the Indian business customer. Our aim was to combine our expertise and experience to create high quality, global standard products with affordable technologies, and with relevance to today’s Indian market. Our vision is now becoming a reality with the first DOST coming off the production line. We are confident that DOST, and future products from our partnership with Ashok Leyland, will contribute to the success of many businesses in India.
Tuesday, July 19, 2011
Ashok Leyland Q1 turnover at Rs. 2,496 crores, up 6%
Published From:
Corporate Office
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...

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.

June 2011

Wednesday, June 15, 2011
Ashok Leyland Board approves bonus shares
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Chennai: 15th June, 2011: The Board of Directors of Ashok Leyland, the Hinduja Group flagship, today approved, the issue and allotment of fully paid Bonus Shares in proportion of one share of Re. 1...

Chennai: 15th June, 2011: The Board of Directors of Ashok Leyland, the Hinduja Group flagship, today approved, the issue and allotment of fully paid Bonus Shares in proportion of one share of Re. 1/- each for every share held as on the Record /Book Closure Date, subject to statutory approvals and also approval by the shareholders at the Annual General meeting to be held on 19th July 2011. The Bonus Shares so issued/allotted shall rank pari passu in all respects except that these shares shall not be eligible for dividend for the year ended March 31st, 2011.

“Ashok Leyland has always endeavoured to create greater value for the shareholders and this is just one more step in that direction,” said Mr. Dheeraj G Hinduja, Chairman, Ashok Leyland. “The Board felt that it was appropriate that the fruits of success of the Company, over the last several years be shared with those who have invested in the Company” he added.

May 2011

Wednesday, May 25, 2011
Ashok Leyland bags order for 290 Double Deckers for Bangladesh Order worth more than USD 23 million
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Hinduja Group flagship, Ashok Leyland has bagged an order for 290 fully-built Double Decker Buses from Bangladesh Road Transport Corporation (BRTC). Worth around USD 23.3 million, this represents the...

Hinduja Group flagship, Ashok Leyland has bagged an order for 290 fully-built Double Decker Buses from Bangladesh Road Transport Corporation (BRTC). Worth around USD 23.3 million, this represents the Company’s largest single order for Double Decker Buses from that country.

An agreement to this effect was signed by the Chairman of BRTC and Mr. Antony Lobo, Special Director-International Operations, Ashok Leyland at Dhaka last week.

Commenting on the order, Mr Vinod K Dasari, Managing Director, Ashok Leyland, said: “Bangladesh has always remained a very important market for us. Our continued focus on this robustly growing market has helped us establish ourselves today as the second largest brand in that country’s commercial vehicle market. We will continue to maintain this focus in the coming years”.

In 2010-2011, saw the Company’s export numbers zoom by 72% to touch 10,306 nos. in which Bangladesh had a significant contribution. Over the years, more than 9,500 vehicles (of different models) have been exported through Ashok Leyland’s sole dealer of over two decades, Ifad Autos Ltd.

Thursday, May 19, 2011
Ashok Leyland Turnover at Rs. 11,117.71 crores, up 54% • Net Profit at Rs 631.30 crores, up 49% • Records highest domestic and exports sales
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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...

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”.

April 2011

Wednesday, April 13, 2011
Ashok Leyland to set up new Driver Training Institute at Chindwara Mr. Kamal Nath lays the foundation stone
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Chennai, April 13, 2011: Mr. Kamal Nath, Hon’ble Union Minister of Urban Development, Government of India, laid the foundation stone for Hinduja flagship, Ashok Leyland’s new Driver Training...

Chennai, April 13, 2011: Mr. Kamal Nath, Hon’ble Union Minister of Urban Development, Government of India, laid the foundation stone for Hinduja flagship, Ashok Leyland’s new Driver Training Institute, a pilot project with the Government of India, last Friday at Chindwara, Madhya Pradesh. The function was held in the presence of an array of government officials and senior personnel from the Company.

Spread over 15 acres, this new facility will have all the necessary facilities for heavy commercial vehicle driver training including tracks like 8-curve, S-curve, 6 lane roads, village roads and a state-of-the-art simulator. Ashok Leyland will provide trained manpower, develop and conduct appropriate courses.

Speaking at the function, Mr. Kamal Nath said, “This centre-sponsored institute will help the drivers to know the fundamentals of heavy duty commercial vehicles driving. The comprehensive driver engagement programme will enable drivers to handle the overall on-road safety measures efficiently and help them avoid mishaps. The Indian automobile industry is growing at a rapid pace and the increased focus on road and infrastructure development will boost freight movement across the country. This driver training institute will help create more employment opportunities in the region.”

Commenting on the development, Mr. R. Seshasayee, Executive Vice Chairman, Ashok Leyland said that Ashok Leyland was been one of the few auto companies that has instituted a comprehensive driver engagement programme to strengthen its relationship with the driver community. “The Company is already running two driver training institutes in the country at Namakkal in Tamil Nadu and the other at Burari, near Delhi, that trains about 40,000 drivers every year with more such being planned at Haryana and Rajasthan” he added.

Monday, April 4, 2011
Ashok Leyland posts all-time high annual sales and production numbers • Annual sales at 94,105 vehicles, up 47% • March sales at 12,168 vehicles, up 21%
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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...

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%.

March 2011

Tuesday, March 29, 2011
Ashok Leyland and Nissan unveil their first LCV for India The Ashok Leyland DOST to be market-launched by second quarter of FY 2011-12
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The Hinduja Group flagship, Ashok Leyland and Nissan Motor Company today unveiled their first Light Commercial Vehicle (LCV) – the Ashok Leyland DOST. The product will be launched to the market, as...

The Hinduja Group flagship, Ashok Leyland and Nissan Motor Company today unveiled their first Light Commercial Vehicle (LCV) – the Ashok Leyland DOST. The product will be launched to the market, as indicated earlier, in the second quarter of FY 2011-2012. The ‘Ashok Leyland DOST’ will be produced in Ashok Leyland’s Hosur manufacturing plant.

Powered by a specially-developed, 55 hp high-torque, 3-cylinder, turbo-charged Common Rail Diesel engine, the vehicle has a payload capacity of 1.25 Tonnes. Reflecting the growing expectations of the Indian LCV customer, the Ashok Leyland DOST will be available in 3 versions: a base version with manual steering, a mid version with power steering and a higher version which will have dual tone interiors, power steering and AC. The vehicle will be available in both BSIII and BSIV versions.

Mirroring the evolution of the entire Indian car and light truck market, the Small Commercial Vehicle segment (vehicles less than 3.5 Tonnes) has been witnessing a perceptible upward shift in terms of features, performance and payload and the Ashok Leyland DOST has been positioned as a contemporary, powerful yet highly efficient product. With the hub-and-spoke model fast gaining ground, it is well-placed to ride the robust demand for vehicles making last-mile deliveries. The Ashok Leyland DOST will be available through a newly developed LCV exclusive network to give customers a new level of experience.

“The Indian market is rapidly evolving and customer expectations are growing. We believe that the LCV segment is ready for a substantial upgradation of products that yet offer low cost of ownership. The Ashok Leyland DOST, with its carefully calibrated design and features, attempts to offer a new level of experience to the Indian customer,” said Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd. “Its design reflects the philosophy of both partners: blending the long traditions of quality and comfort of Nissan with the proven record of rugged reliability and fuel efficiency of Ashok Leyland,” he elaborated.

Dr. Andy Palmer, Senior Vice-President, Nissan Motor Company and Chairman, Ashok Leyland Nissan Vehicles Ltd., said, “The product blends the best in terms of Japanese engineering from Nissan, with local relevance that Ashok Leyland brings to the table. It represents a very attractive value proposition to the small and medium businesses that it is targeted at and we are confident that it will find wide acceptance when launched.”

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 09-10 turnover of US $ 1.61 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 and the UAE and a joint venture in Sri Lanka, besides exports to over 30 countries worldwide.www.ashokleyland.com

About Nissan Motor India Pvt. Ltd. Nissan Motor Co., Ltd., the second largest Japanese automotive company by volume, is headquartered in Yokohama, Japan and is an integral pillar of the Renault-Nissan Alliance. Operating with more than 150,000 employees globally, Nissan provided customers with more than 4 million units in 2010. With a strong commitment to developing exciting and innovative products for all, Nissan delivers a comprehensive range of fuel-efficient and low-emissions vehicles under the Nissan and Infiniti brands. A pioneer in zero emission mobility, Nissan made history with the introduction of the Nissan LEAF, the first affordable, mass-market, all-electric vehicle and winner of various international accolades including the prestigious 2011 European Car of the Year award. For more information on our products, services and commitment to Sustainable Mobility, visit our website at http://www.nissan-global.com/EN/.

Wednesday, March 9, 2011
Ashok Leyland expands operations in Punjab and HP Inaugurates four dealership outlets; including the Company’s 350th customer touch point
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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...

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).

February 2011

Tuesday, February 22, 2011
Ashok Leyland Defence and KMW sign MoU on strategic partnership To jointly develop advanced Defence systems for the Indian and international markets
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Ashok Leyland Defence Systems Ltd. and Krauss-Maffei Wegmann GmbH & Co. KG, Munich, Germany, have concluded a Memorandum of Understanding during the International Defence Exhibition (IDEX) at Abu...

Ashok Leyland Defence Systems Ltd. and Krauss-Maffei Wegmann GmbH & Co. KG, Munich, Germany, have concluded a Memorandum of Understanding during the International Defence Exhibition (IDEX) at Abu Dhabi today to co-operate in the development of advanced Defence systems for the Indian Defence establishment as well as other Defence forces worldwide.

The scope of the co-operation will initially include the development of armoured wheeled vehicles, recovery vehicles, artillery and combat systems, bridge laying systems and other similar products.

Ashok Leyland Defence Systems (ALDS), a newly formed Company in which the Hinduja flagship, Ashok Leyland, has 26% equity, brings to this strategic alliance the expertise and experience of designing and developing Defence vehicles that has made Ashok Leyland the largest supplier of logistics vehicles to the Indian Army with over 60,000 of its Stallion vehicles forming the Army’s veritable logistics backbone.

Krauss-Maffei Wegmann (KMW) will provide the technology and the technical assistance that will be required for the development of these Defence systems. A 170-year-old company, KMW leads the market for highly protected armoured wheeled and tracked vehicles. The armed forces of over 30 nations worldwide rely on their systems such as the MBT LEOPARD 2, the artillery system PzH 2000 or the highly protected DINGO 2.

Executive comments:

Dr. V. Sumantran, Chairman, Ashok Leyland Defence Systems: “This strategic partnership seeks to harness the formidable skills of both companies, namely, the technological bandwidth of KMW and our approach to innovations aimed at cost advantage. For ALDS, this brings a new range of product opportunities with which we hope to fulfill India’s growing Defence needs and over time to address select overseas markets.”

Mr. Frank Haun, CEO and President, KMW: “This partnership with ALDS is a further consequent step in KMW’s strategy to internationalize its business. Along with ALDS, we are now able to jointly develop future Indian Defence solutions based on our proven and worldwide leading technologies.”

About Ashok Leyland Defence Systems:

ALDS is a newly formed entity in which the Hinduja flagship, Ashok Leyland, has 26% equity. It leverages the 63 year heritage of Ashok Leyland built upon a range of products and services that have been the mainstay not only of ground mobility in India, but also importantly India’s Defence logistics. ALDS has embarked on a range of new developments covering the domains of Defence logistics vehicles, tactical vehicles, Defence communication systems, etc.

About Krauss-Maffei Wegmann:

KMW leads the European market for armoured wheeled and tracked vehicles. At locations in Germany, Brazil, Greece, the Netherlands, Singapore, Turkey and the USA, some 3500 employees manufacture and support a product portfolio ranging from air-transportable, heavily armoured wheeled vehicles (MUNGO, AMPV*, DINGO, GFF4 and BOXER*) through reconnaissance, antiaircraft and artillery systems (FENNEK, GEPARD, LeFlaSys*, Armoured Howitzer 2000, AGM and DONAR) to heavy battle tanks (LEOPARD 1 and 2), infantry fighting vehicles (PUMA*) and bridge laying systems (LEGUAN). In addition, KMW has wide-ranging system competence in the area of civil and military simulation, as well as in command and information systems and remote-controlled weapon stations with reconnaissance and observation equipment for day and night missions. The armed forces of more than 30 nations worldwide rely on the operational systems by KMW.

* Joint venture with national and international partners

January 2011

Saturday, January 22, 2011
Ashok Leyland’s Q3 revenue up 22.5% at Rs. 2,227.25 crores
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Hinduja Group flagship, Ashok Leyland has reported a 22.5% increase in its revenue for the third quarter of the current fiscal at Rs. 2,227.25 crores as against Rs. 1,817.49 crores for the...

Hinduja Group flagship, Ashok Leyland has reported a 22.5% increase in its revenue for the third quarter of the current fiscal at Rs. 2,227.25 crores as against Rs. 1,817.49 crores for the corresponding quarter of 2009-10. Sales volume for the quarter witnessed a healthy increase of 14% at 18,437 nos (16,129 nos) with exports registering a jump of 147% at 3,513 nos (1,425 nos). Net profit for the quarter, however, slipped by 59% at Rs. 43.37 crores (Rs. 104.63 crores).

Employee cost rose by 40% at Rs. 243.92 crores (Rs. 173.62 crores) owing partly to increase in manpower strength. Other expenditure also increased by 35% at Rs. 187.93 crores as against Rs. 139.70 crores for the corresponding quarter of the previous fiscal attributable to expenses incurred for the setting and ramping up of the Pantnagar manufacturing facility, increased focus on R&D and the high-decibel launch of the new, innovative U-Truck platform. Financial expenses were also up by 193% at Rs. 47.48 crores (Rs. 16.21 crores) due to an increase in working capital.

Production volume at 19,291 nos for the quarter compares well with corresponding quarter of last year (19,411 nos).

For the nine months ended December 2010, sales revenue was higher by 69% at Rs. 7,289.18 crores (Rs. 4,312.84 crores). Net profit was also up 66% at Rs. 333.07 crores (Rs 201.01 crores).

“As I had forewarned, after the robustness of the second quarter of this fiscal, Quarter 3 has been bit of a dampener attributable to the time taken by the market to accept the new emission norms and critical supply issues, said Mr. R. Seshasayee, Managing Director, Ashok Leyland. “However, going forward, we see a number of positive signs for the fourth quarter and beyond: there is still good traction in the economy, agricultural output is expected to be encouraging, the commercial vehicle is showing buoyancy on the back of adequate freight availability and high capacity utilization. Exports have been witnessing a boom with our strong markets witnessing a welcome robustness which should help us double our export numbers by end of the fiscal. By ramping up our production to meet this increased demand, Ashok Leyland is targeting to finish 2010-11 strongly, nearing 95,000 vehicles”, he added.

Saturday, January 22, 2011
ASHOK LEYLAND ANNOUNCES KEY CHANGES IN TOP MANAGEMENT
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Ashok Leyland today announced the appointment of Mr. R. Seshasayee as Executive Vice Chairman effective 1st April 2011 to lead the new strategic direction of the Company. Mr Seshasayee, the present...

Ashok Leyland today announced the appointment of Mr. R. Seshasayee as Executive Vice Chairman effective 1st April 2011 to lead the new strategic direction of the Company. Mr Seshasayee, the present Managing Director of Ashok Leyland and Executive Vice Chairman of the holding Company, Hinduja Automotive Ltd., will continue to have overall responsibility for Ashok Leyland.

The Company also today announced that Mr. Vinod K. Dasari will be Managing Director (designate) of Ashok Leyland with immediate effect and will assume responsibility as Managing Director with effect from 1st April 2011. Mr Dasari is currently Chief Operating Officer and a Whole-time Director of the Company.

Speaking on the new role for Mr Seshasayee, Mr. Dheeraj G Hinduja, Chairman, Ashok Leyland, said, “Under Mr Seshasayee’s leadership, Ashok Leyland has consistently grown from strength to strength to its present position. His contribution to the Company’s transformation has been immense and the Board is very keen that the organisation should continue to benefit from his insightful thinking, deep knowledge and wide experience. He will now focus on strategic initiatives towards globalisation of the Company’s operations as well as leadership development.”

Mr Seshasayee has been Managing Director from 1998 and his current term was due to expire on 31st March 2011.

“This is a planned transition,” said Dheeraj Hinduja, “Vinod was being groomed for this move over the last few years and he was progressively being entrusted with the responsibilities relating to Marketing, Manufacturing, Strategic Sourcing and Product Development. I am confident that Vinod will be able to successfully lead from the front. The Company is on the threshold of significant growth and the blend of experience and youth in the top leadership team will be a great asset.”

Mr Dasari joined Ashok Leyland in 2005, prior to which he was Joint Managing Director of Cummins India Limited. Having started his career with General Electric USA in 1986, Mr. Dasari worked at Timken for two years: the assignments being as President, Global Rail division and Managing Director, Timken, India. He also serves on the Boards of Automotive Coaches & Components Limited (ACCL), Gulf Ashley Motor Limited, Gulf Oil Corporation Limited, Irizar-TVS Limited, Ashok Leyland UAE LLC, Lanka Ashok Leyland PLC and Water Partners International (a non-profit organisation).

Tuesday, January 18, 2011
Ashok Leyland bags fresh orders from VRL Logistics • To supply 200 car carriers on the U-3518 Tractor • Order also includes U-4923 Tractors and 12-meter buses • Cumulative order worth over Rs. 172 crores
Published From:
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Hinduja flagship, Ashok Leyland, today announced the bagging of fresh orders from VRL Logistics of 262 vehicles comprising 200 numbers of car carriers on the U-3518, 12 nos. of the U-4923 and 50 nos...

Hinduja flagship, Ashok Leyland, today announced the bagging of fresh orders from VRL Logistics of 262 vehicles comprising 200 numbers of car carriers on the U-3518, 12 nos. of the U-4923 and 50 nos. of the Company’s 12-meter buses. These requirements come on the heels of an order for 600 vehicles that VRL had placed a month ago for 500 nos. of 3123 Multi-axle vehicles and 100 12-meter buses. Cumulatively, these orders for 862 vehicles are worth in excess of Rs. 172 crores.

“The U-3518 is built on the new, innovative U-Truck platform and is one more example of a product designed to meet the specific load carrying requirements of VRL Logistics, who are India’s leading logistics company,” said Mr. R. Seshasayee, Managing Director, Ashok Leyland. “The rise in demand for fully-built vehicles in the Indian automotive industry is a positive sign and I am happy to note that this order also features a requirement for 40 fully-built, ready-to-use vehicles,” he added.

The car carrier’s tandem axle fitment provides greater stability and helps generate higher fuel efficiency and faster turnaround time and thereby superior returns on investments. It comes with other carefully thought-out features like a wide inspection door to view the loaded cars and sufficient clearance between cars to reduce damage when stored. Further, easily operable hydraulics reduces time for loading and unloading. The U-3518 is powered by a 180 hp turbo-charged, inter-cooled ‘H’ series BS III engine capable of producing a flat torque of 550 Nm @ 1,600 – 2,100 rpm for better driveability.

Mr. Vijay Sankeshwar, Chairman, VRL Logistics said, “VRL is into a high-growth mode which is why, on the one hand, we are substantially expanding our fleet. On the other hand, we are entering new, high-potential growth segments like car-carriers and at the same time consolidating our position in areas like the passenger segment. I have immense confidence in Ashok Leyland’s understanding of my business and their capability to provide me products that are best suited for me.”

The 862 vehicles will be inducted into VRL’s fleet, 80% of which are Ashok Leyland vehicles.

VRL has grown from a single truck company in 1976 to a leading logistics enterprise with a fleet of 2,691 vehicles, a 12,000+ strong team and operations spread across 911 branches covering 2,629 locations.