MARKETING

PROJECT
ON
 ACKNOWLEDGEMENT

I would like to express my heartfelt

gratitude and immense respect to Prof. J

Nayak(Faculty, Marketing). I wish to thank

him for making me understand the

marketing concepts in a lucid and simple

manner and for his patience in the doubt

clearance.
COMPANY OVERVIEW:
The origin of Ashok Leyland can be traced to the urge for self-
reliance, felt by independent India. Pandit Jawaharlal Nehru,
India's first Prime Minister persuaded Mr. Raghunandan Saran,
an industrialist, to enter automotive manufacture. In 1948,
Ashok Motors was set up in what was then Madras, for the
assembly of Austin Cars. Company's destiny and name changed
soon with equity participation by British Leyland and Ashok
Leyland commenced manufacture of commercial vehicles in
1955.

Since then
Ashok Leyland has been a major presence in India's commercial
vehicle industry with atradition of technological
leadership, achieved through tie-ups with international
technology leaders and through vigorous in-house R&D.

Access to international technology enabled the Company to set a

tradition to be first with technology. Be it full air brakes, power
steering or rear engine busses, Ashok Leyland pioneered all
these concepts. Responding to the operating conditions and
practices in the country, the Company made its vehicles strong,
over-engineering them with extra metallic muscles. "Designing
durable products that make economic sense to the consumer,
using appropriate technology", became the design philosophy of
the Company, which in turn has molded consumer attitude and
the brand personality as a whole.

Ashok Leyland vehicles have built a reputation for reliability

and ruggedness. The 5,00,000 vehicles we have put on the
roads have considerably eased the additional pressure placed on
road transportation in the independent India.
In the populous Indian metros, four out of the five State
Transport Undertaking (STU) buses come from Ashok Leyland.
Some of them like the double-decker and vestibule buses are
unique models from Ashok Leyland , especially
tailor-made for high - density routes.

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. (Since July 2006, the
Hinduja Group is 100% holder of LRLIH).
The blueprint prepared for the future reflected the global
ambitions of the company, captured in four words: Global
Standards, Global Markets. This was at a time when
liberalisation and globalisation were not yet in the air. Ashok
Leyland embarked on a major product and process upgradation
to match world-class standards of technology.

In the journey towards global standards of quality, Ashok

Leyland reached a major milestone in 1993 when it became
the first in India's automobile history to win the ISO
9002 certification. The more comprehensive ISO 9001
certification came in 1994, QS 9000 in 1998 and ISO 14001
certification for all vehicle manufacturing units in 2002. It has
also become the first Indian auto company to receive the
latest ISO/TS 16949 Corporate Certification (in July
2006) which is specific to the auto industry.
 Ashok Leyland has six manufacturing plants - the mother plant at
Ennore near Chennai, two plants at Hosur (called Hosur I and
Hosur II, along with a Press shop), the assembly plants at Alwar
and Bhandara. The total covered space at these six plants
exceeds 450,000 sq m and together employ over 11,500
personnel.

ENNORE

HOSUR UNIT-1
HOSUR UNIT-2

HOSUR UNIT-2A

ALWAR

BHANDARA

RESEARCH AND DEVELOPMENT (R&D)

R&D

World-class Technology

To offer world-class technology that is relevant and affordable

to the Indian customer is the philosophy that drives R&D at
Ashok Leyland. Over the years, this philosophy has been
translated time and again into products that seamlessly
integrate international technology with local needs. "The role
of R&D is central in fulfilling the company-wide commitment
to total customer satisfaction" states Mr. R. Seshasayee,
Managing Director, and adds that the increased
infrastructural and financial support expresses the company's
determination to become self-reliant in R&D.
Test Track
Value to the Customer
The immediate R&D priorities are to pro-actively address
safety and environmental issues, harness and adopt
technologies that provide value to the customer in an
atmosphere enabling creativity and innovation. Powering
those who "engineer tomorrows" with an enabling
infrastructure has been top priority for the company.

But the company’s R&D is not confined within walls. It

extends to the test tracks as well. Rigorous tests are carried
out under stringent simulated conditions that replicate the
most treacherous landscapes.
Vehicle ruggedness and longevity are a prime customer
concern, as they directly impact earnings. Ever conscious of
this, Ashok Leyland makes extensive use of a modern CAD
set-up, a comprehensive test track facility (where cobble-
stones are calibrated and reset periodically), accelerated
 fatigue testing rigs and rigorous durability testing facilities.
Together they ensure that there is a constant improvement in
the life and on-road performance of every make of Ashok
Leyland vehicle to hit the roads. Safety, durability, through
our R&D efforts.

Cobble-stones
Speed Track Pothole Track
Track

Innovations
Ashok Leyland product development
successes have come from a keen sense of
anticipation and attentiveness. The
company initiated research into alternative
fuels well before legislative debate had
even begun in the country. The result was
the implementation of CNG technology
ahead of the rest promising a breath of
fresh air for polluted cities.

ASSOCIATE COMPANIES:
AUTOMOTIVE COACHES & COMPONENTS LTD (ACCL)
ACCL was promoted by Ashok Leyland and the Tamil Nadu
Industrial Development Corporation (TIDCO) in the 1980's. It
has two Divisions:
ACCL Division ACCL is the largest Tipper Body manufacturer
in the organised sector in India, with its plant at Gummidipoondi,
Tamil Nadu. Since 1987, ACCL has been offering its customer in
India and abroad, well engineered afterchassis solutions: bus
bodies,front-end structures(FES), tankers, aluminum containers,
OB vans, energy vans and the like, apart from tippers.
Over the years, through timely technology induction, ACCL has
perfected the art and science of high quality body building. ACCL
has built over 18,000 tippers and 24,000 FES.
PL Haulwel Trailers (PLHT)(A Division of ACCL)
PL Haulwel Trailers Limited (PLHT) manufactures a wide variety
of after-chassis products, including

- Fifth Wheel Couplers and Hoists - 2 and 3.5 fifthwheel couplers,

adjustable couplers, double oscillating couplers, fifth wheel tip
hoists
- Semi Trailers - Flat beds (Skeleton /platforms), Semi low beds,
Low beds and Full trailers upto 100T capacity
- Container trailers
- Ladle Carriers, for foundries (Steel / Aluminum )
- Running gears for LPG tankers
- Tipping semi trailers upto 35T capacity
- Car / Truck / Tractor Carriers
- Bottom dumpers
- Container sideloaders / transporters under collaboration from
HAMMAR MASKIN AB,on rigid and semi trailers
- All types of user-specific custom-designed trailers for niche
applications
Apart from the above, which are manufactured at the existing two
production centers at Pondicherry and Chennai, PLHT also has
entered into marketing arrangements for hydraulically force-
steered axle trailers from Comet to spa, Italy and for Roll Hydro
from Hydro 7 Industries, France.
Through design and manufacturing skills in after-chassis
products, PLHT has established a market not only within India
but also in the neighboring countries - Sri Lanka, Bangladesh,
Nepal, Vietnam and Myanmar
PLHT would be focusing on after-chassis products as a distinct
business and intends to introduce a variety of application specific
after-chassis products through strategic alliances with reputed
overseas manufacturers in the field.
L ANKA ASHOK LEYLAND
Established in 1982, this is a joint venture between Ashok Leyland
and the Government of Sri Lanka. Equity holding of Ashok
Leyland Ltd. in the joint venture is 28%. Ashok Leyland supplies
chassis in both completely built-up and knocked down conditions
to Lanka Ashok Leyland, which in turn assembles the chassis and
builds bodies, as the case may be, and sells them in the local
market. The factory is situated at Panagoda, about 40 Kms from
Colombo.
This company is fully managed by Sri Lankan
professionals. Lanka Ashok Leyland has also established
a fully owned subsidiary called Lanka Ashok Leyland
Services, which takes care of marketing and after-sales
service including sale of spares.

HINDUJA FOUNDARIES
Established in 1959, Ennore Foundries is India's largest
automotive jobbing foundry with production capacity of 45,000
MT in Grey Iron and 3000 MT in aluminum gravity die castings
per annum. Certified to ISO - 9001 and QS 9000 Quality systems.
Ennore Foundries is also largest manufacturers of Cylinder Block
and Cylinder head castings in India catering to different segment
like automobiles, tractors, industrial engines and power
generators, product ranging from 10 kg to 300 kg in Grey Iron
casting and up to 16.5. kg in Aluminum gravity die casting.
Capability to adapt to emerging trends and absorb new
technologies, competent engineering skills and expertise, a strong
metallurgy base, uncompromising quality consciousness and
dedicated team work have all contributed to create a sound and
solid base for Ennore Foundries in the foundry industry.
With these systems in credit, Ennore Foundries is always ahead of
customer needs.
Ennore Foundries major customers are:
- Ashok Leyland Ltd.
- Hyundai Motor India Ltd.
- Maruti Udyog Ltd.
- Hindustan Motors.
- Mahindra & Mahindra.
- Simpson.
- Caterpillar.
- Swaraj Mazda.
- Tafe

IRIZAR-TVS
Started in 2001, IRIZAR-TVS is a joint venture between Ashok
Leyland, TVS & Sons Ltd and IRIZAR, the internationally reputed
bus body builder from Spain. This joint venture addresses the
growing demand for luxury coaches in the country. As a preferred
supplier to Ashok Leyland, IRIZAR-TVS provides a platform for
Ashok Leyland to introduce new bus body concepts and designs
even as it heralds the pioneering concept of fully built buses of
international luxury standards from an Indian vehicle
manufacturer.
The company will be shortly launching the InterCentury Bus
based on AL passenger chassi
ASHOK LEYLANDS PROJECT SERVICES LIMITED
Ashok Leyland Project Services Limited (ALPS), spearheads the
project development activities of the Hinduja Group in India.
Apart from assisting the investment entities of the Group identify
and implement successfully projects in India, ALPS also provides
professional services to help international companies interested
in projects in India. Through its pool of multi-sector professionals
(in areas such as power, telecommunications and surface
transport infrastructure), ALPS adds the Indian element to the
multinational company or consortium. This company provides
specialised services for undertaking pre-investment, project
development which includes feasibility studies, appraisals,
development of joint ventures, company formation and other
professional services that are designated to deliver project
opportunities from concept to commissioning.
ALPS provides related services on request for specialised inputs
to assist in the profitable and economic implementation of
projects in close co-operation with promoters and designated
shareholders. In certain cases, the Company provides negotiated
equity on behalf of the Ashok Leyland/Hinduja Group as
commitment to the sustained results of its services. The Company
has developed projects at various stages of implementation
relating to power generation, airport construction, and
transportation including air cargo transportation, development of
roads, airports and associated infrastructure.
Through its multi-sector industry knowledge - both in the Indian
and international context - ALPS plays a significant role in
providing ideas and suggestions, that are based on internationally
accepted and proven practices and systems, towards the
formulation of reforms and policies in various industry sectors in
India

CORPORATE PHILOSOPHY
We believe that our impressive strides in the marketplace stem in
equal parts from our proactive approach and our customers'
unstinting support, earned the only way we know: by giving our
customers the most appropriate transport solutions for each of
their applications, and by backing them up with consultancy,
finance, driver training and a responsive after-market network.
We are conscious of the fact that vehicles are more than just a
means of transporting people and goods; we understand that they
have a deep and far-reaching impact on society, the national
economy and the environment.

We have, therefore, always endeavored to engineer products and

systems that promote progress on all these fronts. We firmly
believe that this honest approach will make the Ashok Leyland
marquee the symbol of the very best in transportation, today and
tomorrow.

The five AL values are:

 International
 Speedy
 Value creator
 Innovative
 Ethical

VISION AND MISSION OF ASHOK LEYLAND

LTD
 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 solutions 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, process and people

PRODUCT MIX OF THE COMPANY:

BUSES:
Leaders in the Indian bus market, offering unique models such as
CNG, Double Decker and Vestibule bus.
 Viking BS II
Viking BS - II Viking BS - III

Viking SLF BS-III Viking CNG BS- 12 M Bus - BS II

III

Cheetah BS - II 12 M Bus BS-II Cheetah BS-III

Cheetah BS - II Panther BS - II
Lynx BS-II

Vestibule Bus - Airport Tarmac

Double Decker
BSIII coach
TRUCKS: Pioneers in multi axle trucks and tractor-trailer

4 X 2 Haulage Models 4 X 2 and Multi-axle Multi-axle Vehicles

Tippers

Eco
met
Tractors
ENGINES:
Diesel engines for Industrial Genset and Marine applications, in
collaboration with technology leaders

Engine Dealerships
 Genset Application
Engines ranging from 15KVA to 250KVA
>Industrial Segment >Theatres
>Hospitals / Clinics >Shopping mall /
>Commercial / Offices
Residential >Rice Mills
Complexes >Hotels / Restaurants

Industrial Application
Engines with power rating from 40PS to 200PS.
> Front End Loaders >Harvestor Combines
> Excavators >Compressors
> Compactors >Cranes
> Pavers >Pumps
> Road Sweepers

Marine Application
Engines with power rating from 58PS to 193PS
>Trawlers, Pure >Speed Boats
-Seiners, Gillnetters >Passenger Launches
>Sailing Vessels >Ferries
>Marine generating >Auxiliary drive in
sets Vessels
>Pavers

DG Sets for exports

Diesel and Natural Gas gensets trom 15KVA -
250KVA
>Industrial Segment >Theatres
>Hospitals / Clinics >Shopping mall /
>Commercial / Offices
Residential >Rice Mills
Complexes >Hotels / Restaurants

DEFENCE:
 Largest provider of logistic vehicles to the Indian army.

Special Vehicles Defence Vehicles

SEGMENTATION:

 Ashok Leyland Limited 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 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.

The Medium & Heavy Commercial Vehicles Sector

Commercial Vehicles (CV) broadly fall into two categories-- light
segment (LCV- less than 7 tonnes weight) and medium and heavy
segment (M&HCV- over 7 tonnes). M&HCVs are used for long
distance transportation of people, agriculture produce, capital
equipment and some industrial raw materials. Growth in this
sector is dependent on the general economic trend, development
of infrastructure projects, transport economics, availability of
freight, replacement period of vehicles, availability of credit and
favourable government policies. Since the industry competes with
the railways for several categories of cargo, railway performance
is an important determinant of commercial vehicle sales.
Historically, demand in the Rs. 27000cr M&HCV industry has
been cyclical, 3-4 years of growth followed by 2-3 years of
stagnant sales and recession, with around 6% CAGR over the last
decade.
In recent years, the Government’s thrust on infrastructure and
Supreme Court’s ban on overloading of trucks have been the
growth impetus for the CV industry. In 2006-07, the M&HCV
segment clocked sales of 294,266 vehicles, a strong growth of 34%
YoY. The export market contributed 22% to these numbers.
The market shares (as of March 2007) of dominant players in the
M&HCV sector are:

M&HCV Passenger Carrier Segment

M&HCV Goods Carrier Segment

In May 2007, M&HCV passenger carrier segment registered

strong 40% growth in sales YOY. However, the M&HCV goods
carrier segment registered a sharp 14.2% decline. This segment is
very sensitive to interest rates as more than 95% vehicles are
financed. Interest rates have almost doubled to 13-14% from 7.5
8% last year. There are continuing concerns on input cost
increases due to commodity price movements, together with cost
increases due to improvements in product designs and
upgradation to meet emission norms.
In the near future, competition in this sector is likely to intensify
with the entry of more multinationals. Development of new
infrastructure projects, coupled with movement of construction
material in the upcoming mega SEZs , enforcement of rated
payload regime and with stricter emission norms, will keep the
growth in demand intact. The potential of demand for
replacements is high as well, with over 35% of existing fleet over
10 years old.

SWOT ANALYSIS:
Strength
 The company is punctuated by a number of technological
innovations like multi-axed trucks, full-air brakes and rear
engines.
 Partnership with global players like Nisan Motors, Hino
Motors to serve with the technologies best of their kinds.
 Profitable track record gaining investor’s confidence.
 In spite of stiff competition in M&HCV, its high return on
investments.

Weakness
 Nisan Motors having the holding of 49% of its stocks, which
cuts downs it opportunities to strategize as per Indian
scenario.
 The hybrid vehicles and low emission vehicles capturing the
market share which the company hasn’t duplicated or came
up with any new innovation.
 The company’s profile of wide range of operations resulting
in brand dilution if a single segment do badly in the market.
M’ Porter’s Five Force Model:
As such Tata Motors is the having the highest market share in the
country but Ashok Leyland has been the market leader in buses
segment over years.
The major players in the market are the threat to the company;
there are high entry barriers for new entrants like Volvo who is
trying to enter the goods carrier segment.
 The substitutes are basically the hybrid electric vehicles and the
low emission vehicles giving a stiff competition to the company.
The bargaining power of suppliers is considerably low as the
company follows the partnership mode where the tier 1 suppliers
have less opportunities as compare to the tier 2 and tier 3
suppliers. But overall the bargaining power of suppliers is low
because of the company being at commanding position.

# Tier 1 supplier # Volvo (Goods Carrier)

THE BCG MATRIX:
# Tier 2 supplier
HIGH
# Tier 3 supplier
Marine Diesel
H-series engines
engines

Iveco engines
BUSINESS
GROWTH
RATE
# Hybrid Electric
# Light Commercial Vehicles
Vehicles (LCV)
Luxura

Viking BS-I - city bus

Ecomet range of
Tusker Gold 2214 (6X2)
trucks

LOW HIGH
MARKET SHARE

The present:
  Ashok Leyland, a flagship company of The Hinduja Group, is
engaged in manufacturing and marketing of commercial
vehicles. The company manufactures trucks, buses, defence
vehicles and engines
 It primarily operates in Asia.The company is headquartered
in Chennai, India and employs about 11,940 people.
 The company recorded revenues of INR59,810.7 million
($1,305.1 million) during the financial year ended March
2009 (FY2009), a decrease of 22.8% compared to FY2008.
 The operating profit of the company was INR3,406.4 million
($74.3 million) in FY2009, a decrease of 51.4% compared to
FY2008. Its net profit was INR1,900 million ($41.5 million)
in FY2009, a decrease of 59.5% compared to FY2008.
Achievements
 At 60 million passengers a day, Ashok Leyland buses carry
more people than the entire Indian rail network
 Ashok Leyland has a near 85% market share in the Marine
Diesel engines markets in India
 In 2002, all the vehicle-manufacturing units of Ashok Leyland
were ISO 14001 certified for their Environmental Management
System. First time in Indian commercial vehicle industry
 In 2005, received the world-renowned BS7799 Certification for
its Information Security Management System (ISMS) - first
time for an auto manufacturer in India
 In 2006, received the coveted ISO/TS 16949 Corporate
Certification – first in Indian auto industry
 It is one of the leading suppliers of defense vehicles in the
world and also the leading supplier of logistics vehicles to the
Indian Army.
The future:
With a strong GDP numbers for next few quarters and NHAI road
development programs, commercial vehicles sector in India is
poised for strong growth in the years to come.
Along with this, Supreme Court order on overloading of trucks
will also fuel demand for loading commercial vehicles in the
country even though rising interest cost would impact sales
volume in the short term.
 To take advantage of the market growth, ALL is setting up
two manufacturing units at a cost of Rs 250 crore.
 One will make engines for heavy commercial vehicles and
the other Gearboxes.
 It is also introducing a VRS to cut down the work force at its
plant at Ennore in Tamil Nadu from 5,000 to 4,250.
 The company is also planning to make the H-series engines
at the Ennore plant with a total planned capacity of 40,000
engines at a cost of Rs.150 cr. and the commercial
production will start by 2007. ALL is expanding its CV
facilities and is setting up a new facility in Uttaranchal to
avail tax benefits.
 Increased competition from the entry of foreign truck majors
like Man, Navistar and Isuzu may impact its market share
and demand high investment in technology.
 On long-term basis, ALL is implementing de-risking
strategies whereby one-third of its sales would accrue from
non-cyclical businesses; these include defence, exports and
auto engine and spare parts.

The success of this strategy would stabilize the company’s topline.

Company being in a profitable state, would continue to grow
irrespective of the fluctuating market condition
 BIBLIOGRAPHY

 Google
 www.ashokleyland.com
 marketing management (Philip Kotler)