INDIRA SCHOOL OF BUSINESS STUDIES

Research Methodology Report On Ashok Leyland

SUBMITTED BY:Abhishek Singh Roll no.50(DIV-A)

INDEX

1..INTRODUCTION 2. COMPANY HISTORY 3. .VISION AND MISSION OF THE COMPANY 4.ORGANIZATION STRUCTURE 5. FINANCIAL PERFORMANCE AND OWNERSHIP STRUCTURE 6.MARKET CAPITALIZATION 7. SIZE IN TERMS OF NO. OF EMPLOYEE AND TURN OVER 8. EXCUTIVE PROFILE 9. PLANT LOCATION 10.JOINT VENTURE 11.BUSINESS STATUS 12.PEST ANALYSIS 13.INDUSTRY OVERVIEW AND ANALYSIS 14.SWOT ANALYSIS 16.MARKETING STRATEGIES 17.CSR ACTIVITY 18.MARKETING OPPURTUNITIES 19. EXECUTIVE SUMMARY

four out of the five State Transport Undertaking (STU) buses come from Ashok Leyland. Ashok Leyland embarked on a major product and process upgradation to match world-class standards of technology. In the populous Indian metros. Some of them like the double-decker and vestibule buses are unique models from Ashok Leyland. Initially the production was of only light commercial vehicle of jeep and car derivation. The more comprehensive ISO 9001 certification came in 1994.INTRODUCTION The manufacture of commercial vehicles in the country started in 1948. tailor-made for high-density routes. 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. Global Markets. Within a few years the heavy commercial production overtook the LCV production and by early sixties the heavy commercial production was four times the light commercial vehicle production. Ashok Leyland vehicles have built a reputation for reliability and ruggedness.000 vehicles we have put on the roads have considerably eased the additional pressure placed on road transportation in independent India. This was at a time when liberalisation and globalisation were not yet in the air. In the journey towards global standards of quality.00. captured in four words: Global Standards. 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 blueprint prepared for the future reflected the global ambitions of the company. . The 5.

Raghunandan Saran. Be it full air brakes.COMPANY HISTORY The origin of Ashok Leyland can be traced to the urge for self-reliance. using appropriate technology". The Company's destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. felt by independent India. which in turn has moulded consumer attitudes and the brand personality. . achieved through tie-ups with international technology leaders and through vigorous in-house R&D. Pandit Jawaharlal Nehru. Ashok Motors was set up in what was then Madras. an industrialist. "Designing durable products that make economic sense to the consumer. Ashok Leyland pioneered all these concepts. over-engineering them with extra metallic muscles. power steering or rear engine busses. In 1948. the Company made its vehicles strong. for the assembly of Austin Cars. to enter automotive manufacture. Since then Ashok Leyland has been a major presence in India's commercial vehicle industry with a tradition of technological leadership. Responding to the operating conditions and practices in the country. became the design philosophy of the Company. India's first Prime Minister persuaded Mr. Access to international technology enabled the Company to set a tradition to be first with technology.

Ashok Leyland vehicles have built a reputation for reliability and ruggedness.00. . The 5.000 vehicles we have put on the roads have considerably eased the additional pressure placed on road transportation in independent India.

Being the lowest cost manufacturer 3.VISION AND MISSION LEYLAND¶S VISION: Leyland¶s vision is to enhance the quality and safety of travel and achieve customer satisfaction.Identifying with the customers 2. Leyland focuses on maintain and implement better quality standards to ensure people with more comfortable and safe drive.processes and people the cu O .Global benchmarking our product. This is only achieved through set of objectives that needs to be focused and better implemented through effectiveness and efficiency LEYLAND¶S MISSION: 1.´ The significance of this is that Leyland aims to participate in the development and progress of society through its business activities worldwide.There vision is expressed in their statement as: ³Leyland-Enriching people¶s Lives.

GENERAL MANAGER DEPUTY GENERAL MANAGER ASST.ORGANISATION STRUCTURE MANAGING DIRECTOR EXECUTIVE DIRECTOR SENIOR DIRECTOR GENERAL MANAGER ASST. MANAGER SENIOR OFFICER .

OFFICER DIVISIONAL MANAGER MANAGER SENIOR MANAGER DEPARTMENTAL MANAGER .

FINANCIAL PERFORMANCE AND OWNERSHIP STRUCTURE COMPANY¶S PERFORMANCE IN THE YEAR 09-10 .

OWNERSHIP STRUCTURE .

56 Dividend: 2.MARKET CAPITALIZATION Market Capitalization: 9292.15 MARKET CAPITALIZATION=NO.65 MARKET CAPITALIZATION= 9292.15 (cr) PE Value: 26.49*52.15 .OF SHARES* CLOSE VALUE OF SHARE = 176.

buses.4 million ($74. a decrease of 59. India and employs about 12.SIZE IN TERMS OF NO OF EMPLOYEES AND TURNOVER Ashok Leyland.5 million) in FY2009.4 million ($1. The company recorded revenues of INR66. The company manufactures trucks.900 million ($41. a decrease of 25.666.3 million) during FY2009.5% compared to FY2008. The net profit was INR1. The company is headquartered in Chennai. a decrease of 51.454.4% compared to FY2008.5% compared to FY2008. a flagship company of The Hinduja Group. defense vehicles. is engaged in manufacturing and marketing of commercial vehicles. The operating profit of the company was INR3.406. .7 million) during the financial year ended March 2009 (FY2009). and engines. It primarily operates in Asia.000 people.

EID Parry India Ltd. 1948. he has been Chairman of several National Committees of CII including on Eighth Plan. Defence. . Seshasayee is a Chartered Accountant who started his career with Hindustan Lever Limited in 1971.EXECUTIVE PROFILES Born on June 1. Currently. He is presently the Chairman of the Board of Governors of National Institute of Technology Tiruchirapalli (NITT). He joined Ashok Leyland in 1976. He was the President of Society of Indian Automobile Manufacturers. Appointed as Executive Director in 1983.the apex body representing automobile industry in India during 2001-2003. He was a member of the Government of India delegations to Doha and Hong Kong Ministerial Rounds of WTO in 2001 and 2005 respectively. Economic Affairs. he is the Chairman of IndusInd Bank Ltd. he was elevated as Deputy Managing Director in 1993 and has been the Managing Director since April 1. R. He has served as a director in ICICI Bank. He is also past Chairman of the CII Southern Region. Mr. He is the immediate Past President of the CII. He is a member in the governing council of the Institute for Financial Management & Research and the Academy for Management Excellence. On the National Council of Confederation of Indian Industry (CII) for over 15 years. Ltd. Seshasayee has served on several professional committees such as the Accounting Standards Board and the research committees of the Institute of Chartered Accountants of India. Surface Transport and International Trade & WTO. 1998. and Sundaram Asset Management Co.

Mr. from July 1978 to May 1998 and has successfully led its through to its present stature and eminence. Shahaney served as the Managing Director of Ashok Leyland Ltd. Before joining Ashok Leyland.. Limited in 1978. Shahaney serves as advisor to the Hinduja Group.. He has over 50 years of Board level experience.). Mr. Ltd. Ltd. Mr. J. Shahaney served as Chairman of the Board of Jessop & Co. J. ACGI(London) R. Shahaney served as the Managing Director of Jessop & Co. Shahaney B. Kolkata (a Government .. PROPORTION OF DIFFERENT EXECUTIVE IN ASHOK LEYLAND .(Engg.R.Sc.

Bhandara Plot No.1 MIDC Industrial Area Village Gadegaon.BUSINESS OPERATIONS AND PLANT LOCATION ALL OVER THE WORLD Plant Locations 1.Hosur ± Unit I 175 Hosur Indl. Comple Hosur 3. Hosur ± Unit IIA Cab Panel Press Shop SIPCOT Industrial Complex Mornapalli village Hosur 5. Sakoli Taluk. Bhandara 441 904 Maharashtra . Hosur ± Unit II 77 Electronic Complex Perandapalli Village Hosur 4.Ennore Kathivakkam High Road Ennore Chennai 2.

Pantnagar. Area Alwar 301 030 Rajasthan 7. Sector XII II E. Ambattur 3A/A&2 North Phase SIDCO Industrial Estate Ambattur Chennai 600 098 Tamil Nadu 8.SPL 298 Matsya Indl. Pin .1.263 153 Uttarakhand . Technical Centre Vellivoyalchavadi Via Manali New Town Chennai 600 103 Tamil Nadu 9.6.Alwar Plot No. Pantnagar Plot No.

Ashley Alteams A 50:50 Joint Venture to produce High Pressure Die Casting (HPDC) aluminum components pre-dominantly for telecommunications & automotive sectors. .JOINT VENTURE AND ALLIANCE John Deere & Company A 50:50 Joint Venture to manufacture and market construction equipment under both the Ashok Leyland and John Deere brands. The JV will commence production by 2010 and will initially roll out Backhoes and Four-wheel-drive Loaders.

develop and adapt infotronics products and services for automotive customers and will cater to the requirements of Ashok Leyland and available opportunities with other vehicle manufactures in India and overseas. The Joint Venture has three separate companies with different share-holding structures: A vehicle manufacturing company in which the shareholding is Ashok Leyland: 51% and Nissan: 49% A powertrain manufacturing company in which Nissan has 51% and Ashok Leyland 49% A technology development company which is owned 50:50 by both partners Automotive Infotronics A 50:50 Joint Venture set up to design. . manufacture and co-operate for the manufacture and distribution of Light Commercial Vehicles under both the Ashok Leyland and Nissan brands.Nissan Motor Company A Joint Venture to develop.

This classification distinguishes between political. PEST ANALYSIS There are many factors that affect any organization. Tax changes. In FY09.BUSINESS STATUS Ashok Leyland is the second largest manufacturer of medium and heavy commercial vehicles (M&HCV) in India. Political: These refer to government policy such as the degree of intervention in the economy. economical. thus taking a big step towards consolidating its presence in the segment. social and technological. It had a 27% market share in the domestic M&HCV segment and a marginal presence in the LCV segment (light commercial vehicles). By PEST analysis we can know about extended environment and key drivers of change of an organization. demographic changes government policy changes etc. new laws. are all examples of macroscopic changes. the company had entered into an agreement with Nissan manufacturing company for the manufacture of LCVs. trade barriers. What goods and services does a government wants to . To help analyse these factors we categorize them using the PEST model.

such as reduced interest rates for export financing. ‡ Changes in taxation policy. The political factors related to automobile industry are: ‡ Indian government auto policy aimed at promoting an integrated. The social factors related to automobile industry are . Economical: These include interest rates. inflation and exchange rates. ‡ Govt. ‡ Promoting multi-model transportation and the implementation Of mass rapid transport system. to what extent does it believe in subsidising firms. poor buying capacity and comparatively cheaper import of second hand automobile from developed country reduces the export of automobile from India in recent days. Social: Changes in social trends like population increase can impact on the demand for a firm's products and the industry as a whole. has granted concessions. phased and conductive growth of the Indian automobile industry. what are its priorities in terms of business support. Economic change can have a major impact on a firm's behaviour. The economics factors related to automobile industry are: ‡ Weighted tax deduction of up to 150% for in-house research and R&D activities.provide. economic growth. ‡ Deteriorating foreign exchange situation in western country. ‡ Several Indian firms have partnered with global players ‡ Rise in price of the raw materials. ‡ Foreign equity investment up to 100% in the automotive sector and there is no minimum investment criteria. taxation changes.

‡ Indian customers are highly price sensitive and put a lot of emphasis on value for money. So the company has a large customer base to serve. ‡ Renewable energy development. Sometimes the technology reduces the life cycle of products. Accelerated acquisition of technology capabilities to raises productivity in agriculture. coal gas renewable. These developments can benefit consumers as well as the organizations providing the products. Continuous technological innovation. . ‡ Upward migration of household income levels. ‡ Changed lifestyle of people has lead to increased purchase of automobiles. Growth in urbanization. ‡ Preference for fuel efficient vehicles with lower running cost. Technology can reduce costs. . Ex. The technological factors related to automobile industry are . improve quality and lead to innovation. Technical: New technologies create new products and new processes.

In any P5F analysis.The threat of new entrants. This is independent of any manufacturer. The threat of substitute products. the market is attractive. As such. and ever-expanding financing options to rural residents. The bargaining power of buyers/customers: Buyers in India have a wide variety of choice. we look at the automobile industry in India. one must examine the following: 1. infrastructure progress (especially new and better roads). The amount of rivalry among competitors. However. the capital and expertise needed to setup an auto or parts manufacturing facility would be a great enough barrier to entry to prevent many new entrants from setting up. The threat of new entrants: In most markets. 3. we expect the threat of new entrants to be high. 2. The amount of bargaining power suppliers have. given India's incredible growth forecasts.The bargaining power of buyers/customers. 5. In this. As such.INDUSTRY OVERVIEW AND ANALYSIS A Porter's Five Forces Analysis explores five principal industry factors to determine the attractive of a given industry in a given market. There are more than 20 foreign manufacturers selling in India (including ultra high-end such as . it applies to every Indian car manufacturer. 4.

The amount of bargaining power suppliers have: It is likely that the suppliers to the manufacturers have considerable bargaining power. The threat of substitute products India is famous for its two-wheelers (bikes and mopeds) and threewheelers.Rolls-Royce and Lamborghini). The industry is not yet in its shake-out phase and is still struggling to find the up-and-coming stars and possibly topple the leaders. These are very real and obvious threats to auto manufacturers. Of course there are also a plethora of incredibly cheap choices. . They are not held ransom by one single manufacturer as they can market their products to any of the others in India. The amount of rivalry among competitors: The amount of rivalry amongst competitors in India is high. like the famous Tata Nano.

Promotional programmes of other bran4. Standard Quality Product Weakness of the company 1. Sales representatives are less 4. Due to liberalization. QS 9000 in 1998 and ISO 14001. Good Organisational Climate. 4. 2. 2. High price 3. High Market Share 4. Company provides better credit facility to dealers. There is no proper mechanism to handle the grievance of the Customers. 3. National market through good advertisement. Strong Functional Structure 6.High competition 2. 3. Company introduces promotional programmes Threats faced by the company 1. The more comprehensive ISO 9001 certification came in 1994. . Good replacement facility if other brands. history to win the ISO 9002 certification.SWOT ANALYSIS For the Quality assurance Ashok Leyland completed journey towards global standards of quality. Good Training System. SWOT ANALYSIS Strength of the company 1. Liberal credit policy of other brand 3. Skilled Employees 5. demand for heavy vehicle have steeped up all over the globe. Low margin 2. Complicated national market 5. Opportunities for the company 1.

product identity and the customer's perceived value of the product. Typical examples of a mass produced tangible object are the motor car and the disposable razor. material costs. It is determined by a number of factors including market share.MARKETING STRATEGIES Product . It can include any physical store as well as virtual stores on the Internet. Intangible products are often service based like the tourism industry & the hotel industry. . Place ± Place represents the location where a product can be purchased. competition. The business may increase or decrease the price of product if other stores have the same product. Price ± The price is the amount a customer pays for the product.A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. A less obvious but ubiquitous mass produced service is a computer operating system. It is often referred to as the distribution channel.

It is the only form of advertising that targets all five senses and has the recipient thanking the giver. One of the most notable means of promotion today is the Promotional Product. Advertising covers any communication that is paid for. Word of mouth is any apparently informal communication about the product by ordinary individuals. Sales staff often plays an important role in word of mouth and Public Relations . as in useful items distributed to targeted audiences with no obligation attached. radio and Internet adverts through print media and billboards. from television and cinema commercials. which is common in film promotion. satisfied customers or people specifically engaged to create word of mouth momentum. Promotion has four distinct elements advertising. word of mouth and point of sale. This category has grown each year for the past decade while most other forms have suffered. seminars or trade fairs and events. conferences. A certain amount of crossover occurs when promotion uses the four principal elements together. Public relations are where the communication is not directly paid for and includes press releases. public relations. exhibitions.Promotion ± Promotion represents all of the communications that a marketer may use in the marketplace. sponsorship deals.

CSR ACTIVITIES         GREEN MISSION DRIVER TRAINIING CENTRE HIV /AIDS AWARENESS COMMUNITY SERVICE FUN BUS Donations Career guidance Guest lecturers for school and college students MARKETING OPPURTUNITIES The new face of prosperous India has thrown open tons of opportunities for business. So. the company has moulded the Indian Commercial vehicle industry with pioneering technologies and product innovations including Multi-axle vehicles. For close to six decades. With road networks becoming smoother and more widespread. Tractor trailers. Double Decker and Low floor buses. What does this mean to you? It is a fully loaded opportunity that not only gives you great returns.05. . if you have a passion for engineering tomorrows. please welcome aboard. the commercial vehicle industry is on the upswing. CNG buses. The company has chartered out a growth plan that will meet the demands of the market place.000 vehicle mark in the coming year. A growth plan that marks a new plant in Uttarakhand and a focused drive to reach the 1. but also the satisfaction that you play a big role in the networking of the new India.

For the success of the car in industry a deep study and research has been undertaken to develop an effective and efficient plan. Now Leyland has planned to launch a new car with significant innovations. Leyland along with other producers like Toyota. action plan lays out successful implementation through monitoring has also been included. Pest Analysis Furthermore. Suzuki and Honda etc. .EXECUTIVE SUMMARY This document discusses the marketing strategies for Ashok Leyland and its foray into small car segement Ashok Leyland is launching a new car with the name of ´Leyland next´ and this document provide an efficient and workable marketing plan for the product. Swot Analysis . Some of the important areas covered in this document while developing a Marketing Plan for the selected company are: · Discussion of the Industry · Analysis of company¶s position · Marketing objectives · Promotions strategies · Pricing strategies · Product strategies . The demand for cars in India over time has increased a lot due to growth of economy and stability of people economic condition. In India automobile industry is growing at a rapid pace. This has attracted a number of producers towards the market. is a player in the automobile market.

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