Chapter 1

Introduction
Ashok Leyland is a well known automobile manufacturing company in India. Ashok Leyland
believe that its historical success and future prospects are directly related to combination of
strengths. This project is titled as a study on functional areas in Ashok Leyland and tries to find
out the different aspects of manufacturing process in the company.
Corporate Office is in Guindy, Chennai.

1.1 HISTORY OF THE ORGANIZATION
Ashok Leyland is an Indian automobile manufacturing company based in Chennai, India.
Founded in 1948, and it is the second largest commercial vehicle manufacturers of commercial
vehicles, such as trucks and buses, as well as emergency and military vehicles. Operating seven
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 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 over 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 25 ton 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 Vehicles (LCV)
segment (<7.5 tons).
Early products of Ashok Leyland included the Leyland Comet bus chassis sold to many
operators including Hyderabad Road Transport, Ahmadabad Municipality, Travancore State
Transport, Bombay State Transport and Delhi Road Transport Authority. In the popular metro


cities, four out of five state transport undertaking buses come from Ashok Leyland. Some of
them like the Double Decker and Vestibule buses are unique models from Ashok Leyland, tailor
made high-density routes. Statistics reveal that the company is Indias largest exporter of
medium and heavy duty trucks. At 60 million passengers a day, Ashok Leyland buses carry more
people than the entire Indian Railway network.

Raghunandan Saran, Founder of Ashok Leyland
Ashok Motors
Ashok Leyland was founded in 1948 by Raghunandan Saran, a freedom fighter from Punjab.
After Independence he was persuaded by Indias first Prime Minister Nehru, to invest in modern
industrial venture. Thus Ashok Motors was incorporated in 1948 as a company to assemble and
manufacture Austin cars from England, and the company was named after the founders only son
Ashok Saran . The company had its headquarters in RajajiSaalai, 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 passenger cars in India.
Under Leyland
Sometime later, the founder Raghunandan Saran passed away in an air crash, prior to that he had
been negotiating with Leyland of Britain 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 the British based Leyland Motors joined in 1954 with equity
participation by Leyland Motors, changing the name of the company to Ashok Leyland. Ashok
Leyland then started manufacturing commercial vehicles. Under Leylands management with
British expatriate and Indian executives the company grew in strength to become one of Indias
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 Leylands 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 IVECOs indirect stake in Ashok Leyland in 2007.
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
Ivecos remaining ownership stakes.

PRODUCTS
Early Vehicles

Indias first Semi -Trailer Ashok Leyland Comet (Cab) on a Mahindra
OwenSemiTrailer10-12 Ton Capacity built in 1959.


Comet
Early products included the Leyland Comet bus which was a passenger body built on a truck
chassis sold in large numbers to many operators in India. By 1963, the Comet was operated by
every State Transport Undertaking in India, and over 8,000 were in service. It was soon joined in
production by a version of the Leyland Tiger.

The Current generation Ashok Leyland eComet 912
Titan
In 1968, production of the Leyland Titan ceased in Britain, but was restarted by Ashok Leyland
in India. The Titan PD3 chassis was modified, and a five speed heavy duty constant-mesh
gearbox was used together with the Ashok Leyland version of the O.680 engine. The Ashok
Leyland Titan was very successful and continued in production for many years.
Hino Engine


An Ashok Leyland BEST bus in Mumbai. This bus has the Hino Engine.
During early 80s Ashok Leyland entered into a collaboration with Japanese company Hino
Motors from whom technology for the H-series engines was sourced. Many indigenous versions


of H-series engine were developed with 4 and 6 cylinders and also conforming to BS2 and BS3
emission standards in India. These engines proved to be extremely popular with the customers
primarily for their excellent fuel efficiency. Most current models of Ashok Leyland come with
H-series engines.
Iveco Partnership
In late 1980s Iveco investment and partnership resulted in Ashok Leyland launching the
Cargo range of trucks based on European Ford Cargo trucks. The Cargo entered production in
1994, at Ashok Leylands new plant in Hosur, southeast of Bangalore. These vehicles used Iveco
engines and for the first time had factory-fitted cabs. Though the Cargo trucks are no longer in
production and the use of Iveco engine was discontinued, the cab continues to be used on the
Ecomet range of trucks as well as for several of Ashok Leylands military vehicles.
The Cargo was originally introduced in 7 and 9 long tons (7,100 and 9,100 kg) versions; later on
heavier-duty models from 15 to 26 long tons (15,200 to 26,400 kg) were progressively introduced.

1.2 COMPANY PROFILE
Vision
Achieving leadership in the medium/heavy duty segments of the domestic commercial vehicle
market and a significant presence in the world market through transport solution that best
anticipate customer needs, with the highest value-to-cost ratio.
Mission
Identifying with the Customer
Being the Lowest cost manufacturer
Global benchmarking our products, presence and people.
Quality Policy
Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering
superior value to the customer in relation to their own business, through the products and
services offered by the company and comply with statutory requirements. Towards this, the


quality policy of Ashok Leyland is to make continual improvements in the processes that
constitute the quality management system, to make them more robust and to enhance their
effectiveness and efficiency in achieving stated objectives leading to:
1. Superior products manufactured as also services offered by the company.
2. Maximum use of employees potential to contribute to quality and environment by
progressive up gradation of their knowledge and skills as appropriate to their functions.
3. Seamless involvement from suppliers and dealers in the mission of the company to
address customers changing needs and protection of the environment
The Five AL Values are:
1. International
2. Speedy
3. Value Creator
4. Innovative
5. Ethical

1.3 JOINT VENTURES
To avail the advantages of diversification and reap the benefits of entering profitable adjacencies,
we have forged a series of Joint Ventures (JV) with various global leaders.

To fill a significant gap in our range, we have joined hands with Nissan Motor Company, Japan,
to develop and manufacture Light Commercial Vehicles, under both the Ashok Leyland and
Nissan brands, in the 2.5 to 7.5 tonne segment. The JV resides in three separate companies for
Vehicle Manufacturing, Power Train Manufacturing and Technology Development. The first
offering from this stable, the 2.5 tonne Dost, has already proven to be a great success in the
markets it has been launched thus far.




With our JV with John Deere, USA, we aim to seize the opportunities of the robustly growing
construction equipment sector with products like Backhoe Loaders, Four-wheel-drive Loaders,
Skid Steers and Excavators under both the Ashok Leyland and John Deere brands.


This is a JV with Continental AG, Germany to design, develop and adapt infotronics products
and services for automotive customers and meet the requirements of our vehicles and, at the
same time, avail of opportunities with other vehicle manufactures in India and overseas.




Ashley Alteams is a JV with the Alteams Group, Finland, and is in the business of producing
High Pressure Die Casting (HPDC) aluminum components pre-dominantly for
telecommunications and automotive sectors.

1.4 SUBSIDIARIES
Albonair GmbH
Albonair GmbH: was established with a vision of being a complete solution provider for
reducing automotive emissions and has, in the short period since inception, developed the
complete solution for Selective Catalytic Reduction (SCR) and Urea Dosing System (UDS)
conforming to Euro 4, 5 and 6 emission standards for commercial as well as passenger vehicles.

Defiance Technologies
Defiance is a Hinduja Group Company incorporated in 2009, with a focus to provide
Engineering, Manufacturing, Information Technology and Enterprise Services and Solutions for
Automotive, Aerospace, Defence, Industrial and General Manufacturing industries.
Defiance serves top global companies including 18 of the Fortune Global 500 companies. It is
led by a management team with global experience in delivering high-end solutions in
Engineering, ERP and IT services space. As a business solution focused company, Defiance has
established Centers of Excellence (CoE) to develop solutions to address key customer business
imperatives in the Engineering, Manufacturing and Enterprise domains.


Headquartered at Chennai, India, Defiance has world class development centres at Chennai,
Bangalore and Pune (India) as well as in Walldorf (Germany). Defiance Technologies has its
subsidiaries in the US, namely, Defiance Technologies Inc., and in Germany, Defiance Tech
GmbH, respectively. Defiance also has branch offices in UK, Dubai and South Africa.

Global TVS Bus Body Builders Limited
GLOBAL TVS: To address the growing demand for luxury coaches in the country, this is a joint
venture between Ashok Leyland, TVS & Sons Ltd and IRIZAR, the internationally reputed bus
body builder from Spain. As a preferred supplier, GLOBAL TVS provides a platform to
introduce new bus body concepts and designs and fully built buses of international luxury to
India.
Hinduja Leyland Finance
Incorporated in November 2008, Hinduja Leyland Finance (HLF), jointly promoted by Ashok
Leyland and the Hinduja Group, was formed to provide finance for the purchase of vehicles or
equipment. HLF received the NBFC License in March 2010 and have started operations with an
equity of Rs. 225 crores. The strength of the Company lies in its core competence in fund-based
lending for a diversified portfolio of Commercial Vehicles, Cars, Construction Equipment,
Tractors and Used Vehicles and its network that covers 19 states with over 275 locations.
ASSOCIATE COMPANIES
Hinduja foundaries
Lanka Ashok Leyland
IRIZAR TVS
Gulf Ashley Motors Ltd



1.5 CLIENTS
Indian army.
Tamilnadu State Transport Corporation (TNSTC).
Metropolitan Transport Corporation (MTC), Chennai.
State Express Transport Corporation (SETC), Chennai.
Kerala State Transport Corporation.
Maharashtra State Road Transport Corporation (MSRTC).
Andhra Pradesh State Road Transport Corporation (APSRTC).
Praveen Travels and Sharma Transports

1.6 MILESTONES
1966-Full air brakes introduced
1967-Double Decker bus introduced
1968-Power steering offered
1979-Multi-axle trucks introduced
1980-Integral bus with air suspension
1982-Vestibule bus introduced
1992-Won self certification status for defence supplies
1993-Received ISO 9002
1997-Indias first CNG powered bus join the BEST fleet
2001-Received ISO 14001 certification for all manufacturing units
2002-Launched hybrid electric vehicle
2003-E-Comet launched
2004- 50000 vehicle produced
2006- ISO/TS 16949 corporate certification

1.7 CURRENT STATUS
We are the 2nd largest manufacturer of commercial vehicles in India, the 4th largest
manufacturer of buses in the world and the 16th largest manufacturer of trucks globally.


With a turnover in excess of US $ 2.3 billion (2012-13) and a footprint that extends across 50
countries, we are one of the most fully-integrated manufacturing companies this side of the
globe.
Over 70 million passengers use our buses to get to their destinations every day while over
700,000 trucks keep the wheels of economies moving. With the largest fleet of logistics vehicles
deployed in the Indian Army and significant partnerships with armed forces across the globe, we
help keep borders secure.
Headquartered in Chennai, India, our manufacturing footprint spreads across the globe with 8
plants; including one at Ras Al Khaimah (UAE). Our Joint Venture partners include Nissan
Motor Company (Japan) for Light Commercial Vehicles, John Deere (USA) for Construction
Equipment, Continental AG (Germany) for Automotive Infotronics and the Alteams Group for
the manufacture of high-press die-casting extruded aluminum components for the automotive
and telecommunications sectors.

1.8 FACILITIES

Ashok Leyland has seven manufacturing plants the mother plant at Ennore near Chennai, three
plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly plants at
Alwar, and Bhandara and state-of-the-art facility at Pantnagar. The total covered space at these
seven plants exceeds 6, 50,000 Sq.m and together employ over 11,500 personnel.
ENNORE
Spread over 135 acres, Ashok Leyland Ennore is a highly integrated Mother Plant accounting for over
40% ALL production. The plant manufactures a wide range of vehicles and house production facilities
for important aggregates such as Engines, Gear Box, Axles and other key in-house components.
HOSUR: UNIT 1
Established in 1980, Hosur-I is the engine-manufacturing center within the Ashok Leyland
production system. Apart from producing various types of diesel engines (including the engines
manufactured under license from Hino of Japan) and CNG engines, the plant also manufactures


and assembles heavy duty and special vehicles, Axles, AGBs, Marine Gear Box, etc. The facility
is spread over 103 acres and is innovatively laid out, optimizing the use of all resources.
HOSUR : UNIT 2
Ashok Leyland established this state-of-the-art production facility in 1994 at Hosur. Spread over
236 acres, Hosur II houses finishing and assembly facilities including sophisticated painting
facilities. The complex also houses one of the largest press facilities in India for pressing frame
side members. Laid out with an eye for the future, Hosur II has won acclaim from several
automotive experts who have visited the facility.
HOSUR : UNIT 2A
Ashok Leylands brand new Cab Panel Press Shop is an imposing addition to the industrial
skyline of Hosur. At 800 m above sea level, it is also the tallest in the Hosur industrial belt. This
state-of-the-art facility is housed in a 99-acre expanse with a built up area of over 15,000 sq.m.
The Shop is equipped to stamp select panels for Cargo cab, G-45 and C-45 FES - totally, 55
panels and their variants. Right now it houses eight presses and has the provision to
accommodate four more. The versatility of the presses can be utilized for making panels of
complex shapes and profiles with appropriate tooling and dies.
ALWAR(RAJASTHAN):
Established in 1982, the Alwar Unit in Rajasthan is an assembly plant for a wide range of vehicles with
an emphasis on passenger chassis, including CNG buses, situated close to the northern market.
BHANDARA(MAHARASHTRA)
Ashok Leylands Bhandara Unit houses manufacturing and assembly facilities for sophisticated
synchromesh transmission and also has facilities for assembly of vehicles.
PANTNAGAR(UTTARAKHAND):
Set over 190 scenic acres, the Pantnagar plant of Ashok Leyland is also its largest and one of the
most integrated manufacturing facilities in Indian commercial vehicle industry. On 200,000 Sq.m


of built up area, it houses best in class industrial architecture combined with the latest
manufacturing technologies that is also ecology sensitive.
Designed on lean manufacture principles, process control for high quality of output and
flexibility to manage variety with quick changeovers are built into the machine and process
selection. The factory boasts of latest generation equipment sourced from global leaders in
Japan, USA, Europe and India.
Ashok Leylands Technical Centre, at Vellivoyalchavadi in the outskirts of Chennai, is a state-
of-the-art product development facility, that apart from modern test tracks and component test
labs, also houses Indias one and only Six Poster testing equipment.
The company has an Engine Research and Development facility in Hosur.
The new plant in the North Indian state of Uttarakhand at Patnanagar is set up at an investment
outlay of Rs.1200 crores. This plant is expected to go on stream in the year 2010 to cater mainly
to the North Indian market taking advantage of the excise duty and other tax concessions. The
facilities have been so designed as to accommodate further expansion in terms of capacity and
future models. At full capacity utilization, 75000 vehicles will roll out of the Patnanagar plant.
The company has signed an agreement with Ras Al Khaimah InvestmentAuthority (RAKIA) in
UAE for setting up a bus body building unit in the Middle East.

1.9 WELFARE MEASURES
The following are the welfare schemes available to the employees.
Canteen facilities
Medical claims
Transport facilities
Ashok Leyland school for their children
Scholarship schemes
Recreation facilities