Ashok Leyland Ltd - Stock Valuation and Financial Performance

Ashok Leyland, flagship of the Hinduja group, is the second largest manufacturer of commercial vehicles in India, the third largest manufacturer of buses in the world, and the tenth largest manufacturers of trucks. It had launched India’s first electric bus and Euro 6 compliant truck in 2016. With the largest fleet of logistics vehicles deployed in the Indian Army and significant partnerships with armed forces across the globe, the company helps keep borders secure. It has ISO/TS 16949 Corporate Certification and is also the first CV manufacturer in India to receive the OBD-II (on board diagnostic) certification for BS IV-compliant commercial vehicle engines, SCR (selective catalytic reduction), iEGR (intelligent exhaust gas recirculation) and CNG technologies.

It is the first truck and bus manufacturer outside of Japan to win the Deming prize for its Pantnagar plant in 2016 and the Hosur Unit II being awarded the Deming Prize in 2017. Driven by innovative products suitable for a wide range of applications and an excellent understanding of the customers and local market conditions, the company has been at the fore-front of the commercial vehicle industry for decades. The company’s wide-spread customer base is served through an all-India sales and service network. With technology-enabled customer engagement processes and knowledge on the specific applications of the product range, its sales team is well equipped to fulfil customer’s needs.

Business area of the company

The company is engaged in the manufacturing of commercial vehicles and related components. The company has a product range from 1T GVW (Gross Vehicle Weight) to 55T GTW (Gross Trailer Weight) in trucks, 9 to 80 seater buses, vehicles for defence and special applications, and diesel engines for industrial, genset and marine applications.

Product:

• Trucks
  
• Buses
  
• Light Vehicles 
  
• Power Solutions
  
• Defence

History and Milestones:

• 1948: The Birth of Ashok Motors.
  
• 1949: Production began in September at the factory situated at Ennore, north of Madras, and soon the first indigenously assembled A40 Austin car was rolled out. 
  
• 1950: Ashok Motors and Leyland, UK agree to collaborate.
  
• 1951: Assembly of Leyland chassis commences.
  
• 1954: Government approval for manufacture of commercial vehicles.
  
• 1955: Ashok Motors becomes Ashok Leyland.
  
• 1967: India’s first double-decker arrives.
  
• 1969: For the first time, power steering was featured on commercial vehicles.
  
• 1970: A specially designed vehicle for the Indian Army.
  
• 1972: Production target upped to 10,000 vehicles a year.
  
• 1974: Turnover tops Rs 1,000 million.
  
• 1976: The ‘Viking’, the first ever bus with an alternator and a unique front overhang that facilitated front entry hit the Indian roads.
  
• 1978: India’s first rear-engine bus - ‘Cheetah’ was introduced.
  
• 1980: Hosur plant starts operations.
  
• 1980: India’s first 13-ton truck - ‘Tusker’ with a 125 hp engine was launched followed by the country’s first multi-axle truck - ‘Taurus’.
  
• 1982: India’s first Vestibule bus introduced.
  
• 1982: Two new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) were inaugurated.
  
• 1990: The company’s Technical Centre at Vellivoyalchavadi, on the outskirts of Madras was ready equipped with much-needed testing tracks.
  
• 1993: First Indian auto company to receive ISO 9002 certification.
  
• 1995: First driver training facility set up at Namakkal. 
  
• 1996: Hosur Plant II inaugurated.
  
• 1997: The Stallion, an all-terrain logistic vehicle, was inducted into the Indian Army.
  
• 1997: India’s first CNG bus launched.
  
• 2002: The country’s first Hybrid Electric Vehicle was developed and showcased at Auto Expo 2002.
  
• 2005: First Indian auto company to receive BS 7799 certification.
  
• 2006: The truck business of Czech Republic-based AVIA came into the Company’s fold.
  
• 2006: Agreement inked with Ras Al Khaimah Investment Authority for the setting up of a bus assembly plant in the UAE.
  
• 2007: The JV was with Siemens VDO, for the development of automotive Infotronics.
  
• 2007: Joint Venture with the Alteams Group, Finland for the production of HPDC (High Pressure Die Casting) extruded aluminum components.
  
• 2008: Joint Venture inked with John Deere, USA for the manufacture of construction equipment products.
  
• 2008: Albonair, GmbH established for the development of clean and green technologies.
  
• 2010: India’s first Hybrid CNG Plug-in Bus showcased at Auto Expo 2010.
  
• 2010: Pantnagar plant inaugurated.
  
• 2010: The U-Truck platform launch.
  
• 2010: Bought 26% stake in Optare plc, a well-known bus maker in the UK. Subsequently, the stake was increased to 75.1% in January, 2012.
  
• 2011: A full range player with DOST; Entry into the LCV segment.
  
• 2011: Enters the construction equipment space.
  
• 2012: Jan Bus, world’s first single step entry, front engine, fully flat floor bus unveiled.
  
• 2012: Introduced India’s first 37-tonne haulage truck with the highest payload of up to 27 tonnes.
  
• 2013: Launched the future-ready electronic fuel efficient Engine with CRS with is protected upto BS-VI.
  
• 2013: Launched the next generation intermediate commercial vehicle ‘BOSS’.
  
• 2014: CAPTAIN truck series launched.
  
• 2014: Launched MiTR - a new age LCV bus.
  
• 2014: Launched the next generation LCV Truck–Partner powered by advanced ZD30 Common Rail diesel engine.
  
• 2015: Launch of the Zero Emission Electric Bus.
  
• 2016: Sunshine Bus launched.
  
• 2016: Guru and Partner launched.
  
• 2016: Circuit Electric Bus launched.
  
• 2017: Circuit Electric Bus launched.
  
• 2017: Dost+ launched.
  
• 2017: Captain Haulage launched.
  
• 2017: 3718+ truck launched.
  
• 2018: Ashok Leyland and Israel’s ELBIT Systems sign MOU for High Mobility Vehicles.
  
• 2018: Expands Network through a New Service Facility of IFAD AUTOS.
  
• 2018: Introduced the Circuit S Electric Bus with battery swapping technology.
  
• 2018: Launched eN-Dhan fuel card in association with HPCL.
  
• 2018: Introduces Innoline, world’s first BS4 Engine driven by an Inline Fuel Pump. Designed in India, made for the World.
  
• 2018: Launched AL Select a customer loyalty program to strengthen company’s bond with key customers.
  
• 2019: Launched Guru 1010, Boss 1616 and Boss 1916 to strengthen ICV and MDV range.
  
• 2019: Became the first OEM to receive BS VI certification for the full range of heavy duty trucks.
  
• 2019: Showcased BS VI Mid-NOx Technology.
  
• 2019: Bags order for 1750 Buses from Tamil Nadu State Transport Undertakings.
  
• 2019: Bags the order for 400 Minibuses from Senegal.
  
• 2019: Ashok Leyland partners with Axis Bank.
  
• 2019: Ashok Leyland partners with ICICI Bank. 
  
• 2020: Launched the first of its kind Modular Trucks, AVTR with i-Gen6 BS-VI technology.
  
• 2020: Expands LCV portfolio with the launch of 'BADA DOST'.