Ashok Leyland Limited is an integrated automobile company that offers heavy and medium commercial vehicles and related components, light commercial vehicles, and power solution systems. It is a flagship Hinduja Group company, founded and incorporated by Raghunandan Saran as Ashok Motors in collaboration with Austin Motor Company, England, in 1948. The company’s name was changed to Ashok Leyland in 1955. The company was listed on BSE in 1976 after a successful IPO._x000D_ _x000D_ In 1982, the company expanded its manufacturing footprints with two facilities at Bhandara (Maharashtra) and Alwar (Rajasthan). In addition, the business units are also located in Ennore (Chennai), Sriperumbudur (Foundry Division), Vellivoyalchavadi (Technical Centre) and Hosur, Pantnagar (Uttarakhand) and (Vijayawada), Andhra Pradesh. The company entered into the manufacturing of construction equipment vehicles in 2011._x000D_ _x000D_ Ashok Leyland stepped into the electric vehicle market with the launch of Circuit Electric Bus in 2016. The company is the second-largest medium and heavy commercial vehicle manufacturer in India._x000D_

Ashok Leyland Business Segments

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• Medium & Heavy Commercial Vehicles (M&HCV) Segment: The company manufactures Buses and Trucks in this segment, and its sales under MHCV have recorded meaningful growth over the past years.
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• Light Commercial Vehicles (LCV): This segment also deals with the production of buses and trucks in the lightweight category. The segment has witnessed the launch of numerous products across the years. During FY 2023, the company launched new products under the Bada Dost platform, which include Bada Dost i1 (2.5T) & Bada Dost i2 (2.8T).
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• Defence Segment: Ashok Leyland caters to the Indian Army through this segment. The company has delivered numerous Light Vehicles to the Army in recent years. The segment supplied 782 completely built-up units (CBUs) and was able to reduce dependency on VFJ Kits in FY 2023.
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• Foundry Division: The foundry division of the company mainly deals with the automotive industry in product segments of Cylinder Blocks as well as Head and Tractor Housings.
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• Power Solutions: Under this segment, the company deals with agricultural engines, diesel generators, industrial engines, marine engines and gas gensets. This business will likely benefit from the aggressive rural and industry development and ongoing infrastructure expansion activities.
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• Global TVS Bus Body Builders Limited: Global TVS is a joint venture between Ashok Leyland Limited and T V Sundram Iyengar & Sons Private Limited. The company currently caters to export orders for the Middle East and Africa and orders from State Transport Units as per the JNNURM scheme via Ashok Leyland.
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• Hinduja Leyland Finance Limited: Incorporated in November 2008, Hinduja Leyland Finance Limited (HLFL), jointly promoted by Ashok Leyland and the Hinduja Group, was formed to finance purchasing vehicles or equipment. HLFL received the NBFC License in March 2010 and has started operations with an equity of ₹225 crore.
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• Hinduja Tech Limited: It was established in 2009 with a focus on providing Engineering, Manufacturing, Information Technology and Enterprise Services and Solutions for Automotive, Aerospace, Defence, Industrial and General Manufacturing industries. Hinduja Tech Limited serves top global companies, including 18 of the Fortune Global 500 companies.
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Ashok Leyland Team Management

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• Raghunandan Saran, Founder
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_x000D_ Raghunandan Saran was the founder of Ashok Leyland. He was a freedom fighter from Punjab. He was persuaded by India's first Prime Minister, Jawaharlal Nehru, to invest in a modern industrial venture by the end of the Indian Independence Movement._x000D_

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• Shenu Agarwal, Managing Director and CEO
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_x000D_ Shenu has been appointed as MD & CEO in December 2022. Shenu drives the technology transition, growth and future strategy. He has worked with Escorts Kubota Ltd. (formerly Escorts Ltd.), where he was the President._x000D_

Ashok Leyland Corporate Actions

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• Ashok Leyland has finished two acquisitions, including Switch Mobility in June 2021 and Hinduja Foundries in September 2016. The acquisitions are under the Manufacturing Tech and Electric Vehicles sector.
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Ashok Leyland Management Outlook

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• The company is focused on the future of mobility with alternate fuel vehicles showcased in Auto Expo 2023. It will develop a good revenue opportunity for the business.
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• The Union Budget 2023–24 contains a sizable allocation for capital spending, which is anticipated to result in the construction of infrastructure in areas like roads, metros, railways, etc., which will, in turn, boost demand for the CV market in the coming years.
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• The company is optimistic about the growth of MHCV Buses on the back of the opening up of offices and educational institutes.
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Ashok Leyland SWOT Analysis

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• Services like spare parts to the customer provide additional sales.
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• Diversified and strong product portfolio.
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• High debt business.
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• Major dependence on the domestic market.
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_x000D_ Opportunities:_x000D_

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• The government’s infrastructure development plan will likely boost demand for MHCV and LCV.
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• Spanning geographical presence.
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• Growing demand for defence vehicles.
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_x000D_ Threats:_x000D_

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• Semiconductor shortage worldwide.
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• Higher interest rates.
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