We are a billion dollar Company - Ashok Leyland

News
4
We are a billion dollar Company
Record production of 54,519 vehicles in 2004-2005
2004-2005 WAS a year of several milestones
for Ashok Leyland. For the first time, the
Company’s turnover crossed the US $ 1 bil-
lion mark with exports accounting for over US
$ 100 million. The foundation for the year’s
performance was a record production of
54,519 vehicles, facilitated by capacity expansion
effected by the Company during the
year. Total sale of vehicles during the year
grew 12.5%, to 54,740 nos (48,654 nos in
2003-04). With 6,812 vehicles (3,782 vehicles),
export volume grew 80.1%, to account for
12.4% of total vehicle sales.
Ashley News / May 2005
The sales turnover of the Company grew
22.5% to reach Rs 48,113 million (Rs 39,273
million). Net Profit, at Rs 2,714 million (Rs
Highlights 2004-2005:
Turnover at Rs 48,113 million (22.5% up)
Net profit at 2,714 million (40% up)
54,740 vehicles sold (22.5 % up)
6,812 vehicles exported (80% up)
6,254 engines sold (22.9% up)
1,936 million), is up 40%. The Company has
proposed a dividend of 100% as against 75%
in the previous year.
Addressing the media at the annual press
conference on April 28, 2005, R Seshasayee,
Managing Director, said, “top among the
Company’s priorities is capacity expansion. In
two stages, we increased capacities during
2004-2005, from 50,000 to 55,000 and then
to 67,000 vehicles per annum, mostly through
The all-time record production could be achieved by the collective effort of
employees across the Company. Here are some of the voices heard:
“The single-minded goal during the month of March was: maintain Required
Production Demand (RPD), come what may. We achieved 44 MDVs per day
on the trot for all the 27 working days of March 2005”.
- S Murali, DGM-P&Q, Hosur I.
“The adrenaline rush was quite high during March. It was what I had called as
‘the 9061 team’ (90 blocks 61 engines) in action”.
- Anup Bhat, PD-Hosur
“Having crossed the half-a-lakh mark, we must now target one lakh. We can
do it.”
- T M K Sreeraman, Operator, Shop I, Ennore
productivity improvements and
debottlenecking, with marginal investment.
The next phase slated for July 2005 will see
capacity reaching 77,000 vehicles, again with
modest investments, so that we can meet
the market demand in full”.
Reiterating the Company’s focus on R&D,
the MD cited the indigenous development of
a customer-friendly BS III compliant ‘H’ series
engine as an important achievement of
the Company’s R&D team. The Company has
stepped up funding for R&D in recent years,
with R&D spend claiming 1.9% of sales revenue
during 2004-05. He also informed that
over 72 acres of newly acquired land, the
R&D centre near Chennai is undergoing significant
expansion. Among R&D projects on
hand are: a common rail version of H series
engine, a modern front axle and a 2.4m wide
G90 cab. The Newgen 4026 J tractor and a
12m bus, both powered by J series engine,
are slated for market launch during the current
year.
The Company is progressing the co-operation
arrangement with IVECO in new product
development, joint development of overseas
market and sourcing of components. The
Company’s export plans received a boost with
breakthrough orders received from Philippines
and Bangladesh for CNG buses.

News
10
“I would like
to see an
Ashok Leyland
vehicle on
every road in
Asia”
- Dharmendra
“I HAVE SEEN ASHOK Leyland vehicles since I
was a small boy and have a deep admiration
for them”, so said evergreen actor and Member
of Parliament from Bikaner, Dharmendra
at a function organised in Jaipur recently to
mark the sale of the 1000 th Taurus 2516H
multi-axle truck within a record 180 days in
the State of Rajasthan.
He complimented Ashok Leyland for having
built a reputation for reliable and rugged
vehicles and expressed his desire to see “a
Leyland vehicle on every road in Asia”.
Dharmendra later handed over the keys of
DCU within the folds of Ennore
THE TWO COMPANIES had set up special committees consisting of independent
Foundries Limited directors of the respective companies to deal with the merger. Following
independent valuation by Price
The shareholders of Ashok Leyland and Ennore Foundries, at two
separate EGMs, approved the proposal for the sale of Ashok
Leyland’s Ductron’s Castings Unit to Ennore Foundries.
Ashley News / May 2005
The stars of the evening: Dharmendra and the 2516H, along with the Ashok Leyland and
dealership teams.
the 1000 th vehicle to Mr Lalchand Makkad of
PS Golden Transport Company, Jaipur.
Pointing out the similar traits of the two
stars of the evening as enduring strength and
reliability, B Khaitan, Special Director, Vehicle
Sales, said that Taurus 2516H was the only
Indian vehicle with a special kick-down mechanism
that provides the dual benefits of increased
power and higher fuel efficiencies.
The resultant high pick-up from the H-series
WO6DTI turbo charged engine, and its rugged
design make the 2516H ideal for high density
consignments like stone, marble and cement.
Citing the high market acceptance of
the 2516 H in Rajasthan, D C Upadhyay,
Regional Manager-North, said, “The truck
has established a leadership position in the
critical Rajasthan market and the Company
expects to sell nearly 1, 600 vehicles during
the next six months in Rajasthan”. He further
added that over the past two years, the
Company’s sales in Rajasthan had grown 74%,
up from 2,320 in 2002-03 to 4,043 vehicles
in 2004-05. The northern market accounts
for close to a quarter of the Company’s
domestic sales.
Waterhouse Coopers (PWC) on behalf
of Ashok Leyland and by Ernst & Young
on behalf of Ennore Foundries, the
final sale value arrived at for DCU
was Rs 620 million.
DCU is in the process of increasing
its capacity to 36,000 MT per year
(from 24,000 MT) and will continue
to focus on its strength area of ductile
iron castings, while EFL will focus
on grey iron castings.