ORGANIZATIONAL PROFILE

Founded in 1948 and headquartered at Chennai, Ashok Leyland Limited is a public limited Indian
automobile company under the flagship of Hinduja Group of Companies. Our manufacturing facilities
are located at different geo locations with predominance in pan India (refer page 49 of the annual
report FY 2016-17 for complete portfolio). With a combined turnover of INR 2,146,793.92 lakhs our
annual installed capacity is of 150,000 vehicles in India, we have an employee base of 1 10,222 staff.

COMPANY PROFILE

Company Ownership We at Ashok Leyland, have emerged as India’s leading player in the automotive
industry since our establishment and are one of the country’s most esteemed business groups. Our
shares are listed on the Bombay Stock Exchange (BSE) and on the National Stock Exchange of India.

ASHOK LEYLAND PRODUCTS

At Ashok Leyland, we offer a wide range of products to meet our customers’ requirements and
preferences. Our products are geared towards meeting fuel efficiency and promoting the safety of our
customers. We put concerted efforts to innovate and manufacture products that are best suited for
Indian markets. We are also working on enhancing our product and service portfolio to ensure less
cyclicality. Buses, trucks, light vehicles, defence mobility solutions and power solutions form our
product portfolio.

BUSES

We manufacture a variety of buses ranging from 18 seaters to 80 seaters, to suit different needs of our
users with the following applications:

• City application buses

• Sub-urban application buses

• Inter-city application buses

• School / Staff / Tourist application buses

• Special application buses

TRUCKS

Our truck range spans from 2.5T to 49T GVW that cater to over 70 diverse applications from
construction & mining to distribution trucks to long haulage vehicles & tractor-trailers.
MEDIUM & HEAVY DUTY VEHICLES (MHCVS)

Based on applications and GVW, our products serve the following segments.

• Haulage – 16 Tons

• Multi-axle vehicles - 25 Tons / 31 Tons / 37 Tons

• Tractor trailers - 35 Tons / 40 Tons / 49 Tons

• Tippers - 16 Tons / 25 Tons / 31 Tons / 37 Tons

• Distribution trucks (Indian Commercial Vehicles) - 10 / 12 Tons

LIGHT COMMERCIAL VEHICLES (LCVS)

Our light vehicles are utilised in a variety of applications such as intra-city and last-mile
transportation of vegetables, fruits, mineral water, groceries, ice-creams, etc. Our first product the
DOST was an award-winning product and various products have been added since its release.

SUPPLY CHAIN MANAGMENT

The supply chain of a company like ours comprises hundreds of companies making various parts and
components that are ultimately assembled in a plant. The right parts and components, of high quality
must arrive at the right time, in the right quantity, and in a coordinated manner so that the assembly
can be done efficiently. The chain tends to be multi-tiered and complex for an automobile industry
and its effective management is essential for our business. We strive to accomplish this by our various
supply chain relationship initiatives and supplier audits. At Ashok Leyland, we ensure that all our
Micro, Small and Medium Enterprises (MSME) payments are done within 45 days as per the legal
standards. During the year, we have not been in violation of any legal requirements and no penalty
was imposed in regard to payments.

o Based on the above Key areas of supplier development identified, an attempt has been made
in this study to understand the supplier development program followed in a Professional
Organisation in real times. It has been found that the Automobile Giant Ashok Leyland Ltd,
Chennai, has got one of the very successful Supplier Development Program as part of its
World-Class Supply Chain Management.

Mission Statement of the Company: "Our Vendors are our valued partners in our business
development and we shall work with them in a spirit of mutual co-operation to meet our
business objectives."
Vendor Development and Strategic Sourcing are handled by Corporate Materials
Department

-CMD identifies the vendors, rates the vendors based on feedback received from Supplier
Quality Assurance Cell, sends drawings / specifications, calls for quotes with detailed break-
up of operation-wise costs, and negotiates the price at which the parts will be supplied.

- In addition to CMD at Ennore, and the two Units at Hosur, there are Materials Management
Departments (MMDs) for scheduling based on unit production plan.

Vendor Development of Strategic Sources

- Strategic Sourcing is central to the integrated Materials Management function. Ashok

Leyland's policy is to develop a vendor base committed to continuous improvement to meet
quality, cost and delivery standards.

- Ashok Leyland considers its vendors as partners in progress and believes in establishing
mutually beneficial relationships. Ashok Leyland provides necessary technical assistance in
the form of Project and Production Engineering, to maintain quality levels. In addition, where
required, Ashok Leyland also helps vendors financially.

Becoming a Vendor to Ashok Leyland is easy, involving just four steps

- Fill the Questionnaire. As this provides the basic inputs required for preliminary study,
applicants need to provide as much information as possible.

- If Ashok Leyland needs the item you would like to supply, CMD will inform Ashok
Leyland's Supplier Quality Assurance Cell (SQA) for an on-site assessment. Otherwise, the
Vendor information is stored for future reference.

- If SQA approves the vendor, then CMD will send the drawings for SQA cleared
components to the Vendor for obtaining a quotation. If, instead of approving the vendor, SQA
recommends improvements to facilities, the Vendor is given adequate feedback and a re-
survey is undertaken at a mutually agreed future date.

- If the Vendor matches Ashok Leyland's expectations in terms of price, quality and delivery,
then CMD places a trial order with the Vendor. Both on-line and off-line inspection may be
carried out at the time of processing the trial order. Based on the outcome of the trial order,
CMD may place the Vendor in the Approved Vendor List.