Ashok Leyland: A Footprint that Extends Across 50 Nations

A Brief History
Based in Chennai, India, Ashok Leyland is the 2nd largest commercial vehicle manufacturer
in India and the 4th largest manufacturer of buses in the world. It is also the 16th largest
manufacturer of trucks globally. Other than this, Ashok Leyland also makes spare parts and
engines for industrial and marine applications. It has an annual sales record of about
60,000 vehicles and about 7,000 engines. Ashok Leyland 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 per cent (200708). The Company is the market leader in the bus
segment by offering passenger transportation options ranging from 19 seaters to 80
seaters.
Market Analysis
Ashok Leyland share price closed at Rs 96.25 yesterday (24th June 2016). The share price
witnessed a 52 week high and a 52 week low of Rs 112.90 on 13th April 2016 and Rs 68.50
on 29th June 2015 respectively.
International Operations
The growing international footprint of the Company has been made successful by the
vehicles it manufactures. These are ideally suited for varying foreign conditions and
terrains. The Company is the leader in the bus markets in countries like Sri Lanka,
Bangladesh and Mauritius and has significant presence in the Middle East and Africa too.
Ashok Leyland is now seeking to make inroads into CIS and Latin America.
Global Footprints

Optare plc: The Company holds a 75.1 per cent stake in Optare plc., a leading bus maker in
the UK. Optare is well-known for their innovative, weight-optimized Low Carbon range of
low-floor, mid-sized and modern range of city buses. These buses operate not only in the
UK but also in Continental Europe, North America and further afield.
Lanka Ashok Leyland plc: This is a venture with the Government of Sri Lanka in which
Ashok Leyland has a 28 per cent equity holding. The
Company supplies chassis in both completely builtup as well as knocked down conditions to LAL,
which, in turn, assembles the chassis and builds
bodies for the local market.
Ashok Leyland UAE, LLC: With the Ras Al Khaimah
Investment Authority (RAKIA), Ashok Leyland has
set up a state-of-the-art facility, with an initial
annual capacity to manufacture 2,000 international
quality vehicles. Strategically located, this plant will
feed the growing demands of the GCC and African markets.
Recent Happenings
On March 22nd 2016, Ashok Leyland Defense Systems (ALDS) announced that it selected US
global security and aerospace company Lockheed Martin for the pursuit of its Indian
Armed Forces Light Specialist Vehicle (LSV) and Light Armored Multipurpose (LAM)
vehicle programs.
Investor Rational

Growth in export volume by 31.7 per cent and maintaining leadership position in
Sri Lanka, Middle East and Africa.
More than 11 times growth in profit after tax.
Increase in market share of the Medium & Heavy Commercial Vehicle (M&HCV)
segment from 26.1 per cent to 28.6 per cent in the face of fierce competition.
Increase in market share in the immediate vehicle domain enabled by the newly
introduced BOSS range.