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INTRODUCTION
Ashok Leyland is an Indian automobile manufacturing company based in Chennai,
India. Founded in 1948, it is the 2nd largest commercial vehicle manufacturer in
India, 4th largest manufacturer of buses in the world and 16th largest manufacturer
of trucks globally. Operating six plants, Ashok Leyland also makes spare parts and
engines for industrial and marine applications. It sells about 60,000 vehicles and
about 7,000 engines annually. 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 28% (2007–08). With passenger transportation options ranging from
19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment. The
company claims to carry more than 60 million passengers a day, more people than
the entire Indian rail network. In the trucks segment Ashok Leyland primarily
concentrates on the 16 ton to 25ton range of trucks.However Ashok Leyland has
presence in the entire truck range starting from 7.5 tons to 49 tons. With a joint
venture with Nissan Motors of Japan the company made its presence in the Light
Commercial Vehicle (LCV) segment (<7.5 tons).
Ashok Leyland's UK subsidiary Optare has shut down its bus factory
in Blackburn, Lancashire. This subsidiary's traditional home in Leeds has also been
vacated in favour of a purpose built plant at Sherburn-in-Elmet.
HISTORY
Ashok Motors
Ashok Motors was founded in 1948 by Raghunandan Saran, an Indian freedom fighter
from Punjab.After Independence, he was persuaded by India’s first Prime Minister Nehru, to invest
in 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
assembly and distribution of Austin A40 passenger cars in India.
Under Leyland
Sometime later, Raghunandan Saran died in an air crash, prior to that he had been negotiating
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 technology which continued
until the 1980s. Post 1975, changes in management structures saw the company launch various
advanced vehicles and pioneering innovations in the Indian market, with many of these models
continuing to this day with numerous upgrades over the years.
Under Iveco and Hinduja partnership
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. Ashok Leyland’s long-term plan to
become a global player by benchmarking global standards of technology and quality was soon
firmed up. Access to international technology and a US$200 million investment programme
created a state-of-the-art manufacturing base to roll out international class products.
Hinduja Group
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 after Hindujas bought
Iveco’s remaining ownership stakes.
World-class Manufacturing Facilities with Capacity to
Capture Demand Upside
•Seven facilities with capacity of 150500 per annum
•Fully integrated plant at Pantnagar
•Fully built bus facility at Alwar
•Revamped machining and assembly facility at Ennore
•Hosur facilities revamped for LCV manufacture
AL UAE LLC, Ras Al Khaimah, UAE
•Established as a JV with Ras Al Khaimah Investment Authority
•Well-equipped vehicle manufacturing facility
•Capacity 2000 per year, expandable with limited investments
Optare PLC, Leeds, UK
•Modern assembly line bus body facility
•Replaces dated facilities used previously by Optare
•Capable of assembling diesel, hybrid and electric buses
Manufacturing Units
 Ennore, Tamil nadu in North Chennai [estb. 1948] – Trucks, Buses, Engines, Axles etc.
 Hosur, Tamil nadu in Krishnagiri District [estb. 1980] – Two adjacent plants (Hosur-1, Hosur-2, CPPS) for
Trucks, Special Vehicles and Power Units.
 Alwar, Rajasthan [estb. 1982] – Bus Manufacturing Unit
 Bhandara, Maharashtra [estb. 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] – Technicaland Production facility for
Ashok Leyland Defence Systems. Another separate technical center for Nissan Ashok Leyland Vehicles.
Europe
 Sherburn-in-Elmet, (North Yorkshire) Great Britain – Optare Bus.
 Letnany in Prague, Czech – Avia plant.
Middle East
 Ras Al Khaimah, UAE [estb. 2011] – Bus manufacturing facility – Joint Venture between Ashok
Leyland and Ras Al Khaimah Investment Authority (RAKIA) in UAE
Growing Footprint in Five Targeted
International Clusters
PRODUCT LINE
Current Buses
City
 RESLF
 ULE
 Janbus
 Titan Double Decker
 Vestibule bus
Interurban or Moffussil
 Viking
 Cheetah
Intercity
 12M
 Luxura
Feeder
 Janbus Midi
 Stag
 Lynx
Tarmac
 Avion ULF
 Avion RESLF
 Avion ULE
 Gensets
Goods segment
 Comet 1611
 1616 il
 1612 H
 1613 H
 1613 H/2 (12m Goods)
 Hippo Tractor 6X4 Diesel
 4/51 GS
 1613
 Taurus 2516/2 (6x4) Tipper
 CT 1613 H/1 & H/2
 Bison Tipper
 1613 ST (4x2)
 Taurus HD 2516MT/1 (6x4)
 Taurus 2516 - 6X4
 2516 H (6X2)
 Taurus 2516 - 6 X 2
 4018 Tractor
 Artik 30.14 Tractor
 Tusker Turbo Tractor3516
 Ecomet 912/111i
 4921
 U-Truck Tippers U-3123 U-2523 U-2518 U-1616 U-1618
 U-Truck Tractors U-4923 U-4023 U-3518
 1789 Digger
 CAPTAIN TIPPERS - CAPTAIN 2523, CAPTAIN 2518, CAPTAIN 2523
MINING
 BOSS Haulage Trucks - BOSS 1212 LX with AMT and AC, BOSS 1212 LE,
BOSS 1112LE, BOSS 912LE
ORGANISATIONAL STRUCTURE
CASE STUDY ON MAKING NEW SUPPLY CHAIN
The case gives an overview of the issues concerning the revival of Ashok Leyland effected
through a thorough revamp of the supply chain. It outlines how Ashok Leyland, which was
reeling under the weight of recession, staged a comeback by reengineering its in-bound and out-
bound supply chain which resulted in huge cost savings.
The Strategic Sourcing and Corporate Quality Engineering (CQE) teams jointly formed the
single window vendor management agency, bringing with them specialised commercial and
technical knowledge. Within the centrally negotiated price and share of business, unit material
functions interacted with the approved panel of vendors to "pull" materials in line with their
production plans.
For the suppliers, this had created a convenient single-point contact with AL, for sharing drawings,
for negotiating prices and long-term business volumes, and for assistance and consultancy on
quality to management issues.
Supplier Tiering pruned its panel of direct suppliers through tiering and system buying. Under
tiering, AL dealt directly with tier-one suppliers who, in turn, were supported by tier-
two and tier three suppliers. The benefits of system buying could be illustrated with the
example of the tool kits that accompanied every vehicle...

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ASHOK LEYLAND

  • 1. INTRODUCTION Ashok Leyland is an Indian automobile manufacturing company based in Chennai, India. Founded in 1948, it is the 2nd largest commercial vehicle manufacturer in India, 4th largest manufacturer of buses in the world and 16th largest manufacturer of trucks globally. Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications. It sells about 60,000 vehicles and about 7,000 engines annually. 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 28% (2007–08). With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment. The company claims to carry more than 60 million passengers a day, more people than the entire Indian rail network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25ton range of trucks.However Ashok Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. With a joint venture with Nissan Motors of Japan the company made its presence in the Light Commercial Vehicle (LCV) segment (<7.5 tons). Ashok Leyland's UK subsidiary Optare has shut down its bus factory in Blackburn, Lancashire. This subsidiary's traditional home in Leeds has also been vacated in favour of a purpose built plant at Sherburn-in-Elmet.
  • 2. HISTORY Ashok Motors Ashok Motors was founded in 1948 by Raghunandan Saran, an Indian freedom fighter from Punjab.After Independence, he was persuaded by India’s first Prime Minister Nehru, to invest in 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 assembly and distribution of Austin A40 passenger cars in India. Under Leyland Sometime later, Raghunandan Saran died in an air crash, prior to that he had been negotiating 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 technology which continued until the 1980s. Post 1975, changes in management structures saw the company launch various advanced vehicles and pioneering innovations in the Indian market, with many of these models continuing to this day with numerous upgrades over the years.
  • 3. Under Iveco and Hinduja partnership 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. Ashok Leyland’s long-term plan to become a global player by benchmarking global standards of technology and quality was soon firmed up. Access to international technology and a US$200 million investment programme created a state-of-the-art manufacturing base to roll out international class products. Hinduja Group 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 after Hindujas bought Iveco’s remaining ownership stakes.
  • 4. World-class Manufacturing Facilities with Capacity to Capture Demand Upside •Seven facilities with capacity of 150500 per annum •Fully integrated plant at Pantnagar •Fully built bus facility at Alwar •Revamped machining and assembly facility at Ennore •Hosur facilities revamped for LCV manufacture AL UAE LLC, Ras Al Khaimah, UAE •Established as a JV with Ras Al Khaimah Investment Authority •Well-equipped vehicle manufacturing facility •Capacity 2000 per year, expandable with limited investments Optare PLC, Leeds, UK •Modern assembly line bus body facility •Replaces dated facilities used previously by Optare •Capable of assembling diesel, hybrid and electric buses
  • 5. Manufacturing Units  Ennore, Tamil nadu in North Chennai [estb. 1948] – Trucks, Buses, Engines, Axles etc.  Hosur, Tamil nadu in Krishnagiri District [estb. 1980] – Two adjacent plants (Hosur-1, Hosur-2, CPPS) for Trucks, Special Vehicles and Power Units.  Alwar, Rajasthan [estb. 1982] – Bus Manufacturing Unit  Bhandara, Maharashtra [estb. 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] – Technicaland Production facility for Ashok Leyland Defence Systems. Another separate technical center for Nissan Ashok Leyland Vehicles. Europe  Sherburn-in-Elmet, (North Yorkshire) Great Britain – Optare Bus.  Letnany in Prague, Czech – Avia plant. Middle East  Ras Al Khaimah, UAE [estb. 2011] – Bus manufacturing facility – Joint Venture between Ashok Leyland and Ras Al Khaimah Investment Authority (RAKIA) in UAE
  • 6.
  • 7. Growing Footprint in Five Targeted International Clusters
  • 9. Current Buses City  RESLF  ULE  Janbus  Titan Double Decker  Vestibule bus Interurban or Moffussil
  • 10.  Viking  Cheetah Intercity  12M  Luxura Feeder  Janbus Midi  Stag  Lynx Tarmac  Avion ULF  Avion RESLF  Avion ULE  Gensets Goods segment  Comet 1611  1616 il  1612 H  1613 H  1613 H/2 (12m Goods)  Hippo Tractor 6X4 Diesel  4/51 GS  1613  Taurus 2516/2 (6x4) Tipper  CT 1613 H/1 & H/2  Bison Tipper  1613 ST (4x2)  Taurus HD 2516MT/1 (6x4)  Taurus 2516 - 6X4  2516 H (6X2)  Taurus 2516 - 6 X 2  4018 Tractor
  • 11.  Artik 30.14 Tractor  Tusker Turbo Tractor3516  Ecomet 912/111i  4921  U-Truck Tippers U-3123 U-2523 U-2518 U-1616 U-1618  U-Truck Tractors U-4923 U-4023 U-3518  1789 Digger  CAPTAIN TIPPERS - CAPTAIN 2523, CAPTAIN 2518, CAPTAIN 2523 MINING  BOSS Haulage Trucks - BOSS 1212 LX with AMT and AC, BOSS 1212 LE, BOSS 1112LE, BOSS 912LE
  • 12.
  • 14. CASE STUDY ON MAKING NEW SUPPLY CHAIN The case gives an overview of the issues concerning the revival of Ashok Leyland effected through a thorough revamp of the supply chain. It outlines how Ashok Leyland, which was reeling under the weight of recession, staged a comeback by reengineering its in-bound and out- bound supply chain which resulted in huge cost savings. The Strategic Sourcing and Corporate Quality Engineering (CQE) teams jointly formed the single window vendor management agency, bringing with them specialised commercial and technical knowledge. Within the centrally negotiated price and share of business, unit material functions interacted with the approved panel of vendors to "pull" materials in line with their production plans. For the suppliers, this had created a convenient single-point contact with AL, for sharing drawings, for negotiating prices and long-term business volumes, and for assistance and consultancy on quality to management issues. Supplier Tiering pruned its panel of direct suppliers through tiering and system buying. Under tiering, AL dealt directly with tier-one suppliers who, in turn, were supported by tier-
  • 15. two and tier three suppliers. The benefits of system buying could be illustrated with the example of the tool kits that accompanied every vehicle...