Revving up! Ashok Leyland - Motilal Oswal

Ashok Leyland
JV with Alteams OY for aluminum castings
AL entered into a JV with Alteams OY, which will cater to a growing market for high
pressure die-cast aluminum castings for applications in automobile and telecom
equipment. The state-of-the-art manufacturing facility at Cheyyar, near Kanchipuram
(Tamil Nadu) was inaugurated in FY10. It has begun supplies, meeting stringent
requirements of customers in both the segments.
JV with Continental AG for automobile infotronics
AL formed a JV with Continental AG, which will focus on opportunities for automobile
infotronics. Vehicle electronics are expected to play an increasingly important role in
CVs, making them economical, safer and cleaner. The JV focuses on developing
innovative solutions in vehicle electronic systems, such as instrument cluster
applications, cockpit electronics and body control units for CVs and special vehicles.
The JV started operations in FY10 and has been developing products and providing
engineering services support to Continental AG.
JV with Albonair GmbH for vehicle emission treatment
Albonair GmbH, AL's associate company, is focused on the development of vehicle
emission treatment and control systems and products. Albonair (India) was
incorporated in FY10 to cater to emerging markets in China and India. It has developed
the complete solution for Selective Catalytic Reduction (SCR) and Urea Dosing System
(UDS) conforming to Euro 4, 5 and 6 emission standards for commercial as well as
passenger vehicles.
Optare Plc (subsidiary) - low floor bus specialist
AL invested USD11.5m to acquire 75.1% stake in Optare, UK, for access to technology,
product development and to gain entry into newer markets (especially Europe). Optare
pioneered low floor double-decker buses in UK. It is also known for its innovative,
weight optimized 'low carbon' range of low-floor mid-size buses as well as a modern
range of city buses. Its new electric bus has already secured several orders, as more
countries in Europe are promoting cleaner, greener mobility. AL's long-term objective
is not only upgrading it to world class standards but also to produce these high-end
buses at the Indian plants, giving it a significant price advantage.
Performance of JVs under pressure being in ramp-up mode
FY11
FY12
INR m Income Exp Profit Income Exp Profit
AL Nissan Vehicles 21 31 -11 1,135 1,306 -171
Nissan AL Powertrain 12 15 -3 309 356 -46
Nissan AL Technologies 1 103 -102 172 331 -158
AL JD Construction Eqpt 1 46 -45 201 493 -293
Ashley Alteams India 470 577 -107 607 714 -107
Automotive Infotronics 28 5 22 29 58 -28
Total 532 778 -246 2,453 3,256 -803
Source: Company/MOSL
12 November 2012
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