ASHOK LEYLAND LTD

Ashok Leyland Ltd. is presently engaged in manufacture and sale of commercial vehicles. The Company manufacture engines for industrial and marine applications, forgings and casting. Its products include buses, trucks, engines, defense and special vehicles. From 18 seater to 82 seater double-decker buses, from 7.5 ton to 49 ton in haulage vehicles, from numerous special application vehicles to diesel engines for industrial, marine and genset applications, Ashok Leyland offers a range of products. The company is the flagship of the Hinduja Group. Headquartered in Chennai, India, Ashok Leyland's manufacturing footprint spreads across the globe with 9 plants; including one each at Great Britain and Ras Al Khaimah (UAE). The company's Joint Venture partners include John Deere (USA) for Construction Equipment, Continental AG (Germany) for Automotive Infotronics and the Alteams Group for the manufacture of high-press die-casting extruded aluminum components for the automotive and telecommunications sectors. Ashok Leyland Ltd was incorporated in the year 1948 with the name Ashok Motors. The company was set up in collaboration with Austin Motor Company, England for the assembly of Austin cars. In The year 1949, they commenced production at the factory situated at Ennore, south of Madras. Also, they rolled out the first indigenously assembled A40 Austin car. In the year 1950, the company made an agreement with Leyland, UK in which Ashok Motors got sole rights to import, assemble and progressively manufacture Leyland trucks for seven years. In the year 1954, the Government approved the progressive manufacture of Leyland commercial vehicles and a license was granted for the manufacture of 1,000 Comets a year. In the year 1955, the company name was changed to Ashok Leyland Ltd with equity participation from Leyland Motors Ltd. In the year 1967, the company launched 'Titan', the first Indian-made double decker with 50% indigenous components. In the year 1970, the company designed and delivered 1,000 numbers of the 6x4 'Hippo' Tipper to the Indian Army based on their specific requirements. In the year 1972, the license was granted to manufacture 10,000 vehicles a year. In the year 1976, the company introduced the 'Viking', the first ever bus with an alternator and a unique front overhang that facilitated front entry. In the year 1978, they introduced India's first rear-engine bus, 'Cheetah'. In the year 1980, the company inaugurated their second plant in Hosur. They launched India's first 13-ton truck, 'Tusker' with a 125 hp engine. Also, they launched country's first multi-axle truck, 'Taurus'. In the year 1982, they introduced India's first vestibule or the articulated bus. They inaugurated two new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) in March 1982 and August 1982 respectively. In the year 1993, the company received ISO 9002 certification. In the year 1995, they received ISO 9001 Certification. Aslo, they set a driver training facility at Namakkal. In the year 1996, the company set up their second plant at Hosur. In the year 1997, they launched the Stallion, an all-terrain logistic vehicle. Also, they launched India's first CNG-powered bus. In the year 2002, the company developed the country's first Hybrid Electric Vehicle and showcased at Auto Expo 2002. In the year 2006, the company acquired the truck business of Czech Republic-based AVIA. They entered into an agreement with Ras Al Khaimah Investment Authority For the setting up of a bus assembly plant in the UAE. In the year 2007, the company entered into a joint venture with Nissan Motor Company, Japan for manufacture and marketing of Light Commercial Vehicles. They entered into a joint venture with Continental AG, Germany for the development of automotive infronics. Also, they entered into a joint venture with Alteams Group, Finland for the production of HPDC (High Pressure Die Casting) extruded aluminum components. In the year 2008, the company entered into a joint venture with John Deere, USA for the manufacture of construction equipment products. They established Albonair, GmbH for development of vehicle emission treatment / control systems and products. In March 2010, the company inaugurated a plant at Pantnagar in Uttarakhand. This is the company's modern, technologically world-class and largest plant with a capacity to touch 75,000 vehicles. They introduced the new, future-ready U-Truck platform with the promise of a holistically superior level of trucking. The company bought 26% stake in Optare plc, a well-known bus maker in the UK. In order to cater to the emerging markets in China and India, Albonair (India) Pvt Ltd was incorporated during the year. During the year 2010-11, the company acquired 26% in the equity share capital of Optare plc, U.K., a leading bus manufacturer in U.K., which will benefit the company in their endeavour to address new markets, and to accelerate technology development. In December 16, 2010, the company inaugurated the state-of-the-art factory built as a venture between the company and Ras Al Khaimah Investment Authority (RAKIA), at Ras Al Khaimah. This facility will cater to the needs of the African/Middle East markets and also facilitate launching of AVIA range of trucks manufactured by Avia Ashok Leyland Motors s.r.o. to these markets. In the year 2011, the company entered into the LCV segment with the launch of Dost. In September 2011, the company entered into the Tanzanian market by bagging an order for 723 trucks, buses and special application vehicles. In October 2011, the company entered into the construction equipment space with the launch of a new brand, LEYLAND DEERE. In November 2011, the company received the contact to supply 700 cluster CNG buses to Delhi. In the year 2012, the company launched Jan Bus, world's first single step entry, front engine, fully flat floor bus. They introduced U-3723, India's first 37-tonne haulage truck with the highest payload of up to 27 tonnes. In January 2012, the company increased their stake in Optare plc to 75.1%. In 2013, Ashley Services Limited (ASL) has become a wholly owned subsidiary of the company. The company bags contract for about 2,610 buses for an undisclosed amount from the Institute of Road Transport (IRT), Tamil Nadu which is a nodal organisation that obtains buses for all state transport corporations. The company opens 3 dealer outlets in a day to significantly expand network presence in Gujarat. The company inaugurated the company's new Driver Training Institute (DTI) at Chhindwara. The company launches Luxura Magical India' Bus, in support of Charter for Charity'. In 2014, the company launched two new Light Commercial Vehicles (LCV) - PARTNER truck, India's first air-conditioned LCV goods vehicle and MiTR bus. The company, launched JanBus' - the world's first', fully-flat floor, front-engine bus with single-step entry and air suspension in Kolkata. The Company has bagged a contract from the Ministry of Tourism & Hospitality Industry, Government of Zimbabwe for supply of 670 vehicles valued at approx. USD 50 million. The company received an order for 2,200 buses from the Government of Sri Lanka'. The company bags major projects from Africa worth USD 79.2 mn. The company signs a MoU with Bank of Maharashtra for vehicle financing. In 2015, the company has tied up with Lakshmi Vilas Bank to provide finance to its commercial vehicle buyers. The company wins order for buses worth 82 mn USD from Senegal. The company wins contract for 3600 vehicles worth $200Mn from Cote D'Ivoire. The company inaugurated a new dealership M/s. Makroo Motor Company in Srinagar. The company signed a Memorandum of Understanding (MoU) with The South Indian Bank. The company opens a new dealership in Hosapete, Karnataka. The company opens a new dealership in Mangaluru, Karnataka. The company also inaugurates a state-of-the-art workshop in Riyadh. During the year 2016, as a part of the divestment plans of the Company to sell non-core businesses, the company sold 23,25,18,140 equity shares of 10/- each held in Ashok Leyland John Deere Construction Equipment Company Private Limited to Gulf Ashley Motor Limited, a subsidiary of the Company and thereafter the Company has infused committed capital contributions. Automotive Infotronics Limited, joint venture and Ashley Airways Limited an associate of the Company are under liquidation. During the year under review 2016-2017, the Board of Directors of the Company at their meeting held on September 14, 2016, approved the draft scheme of amalgamation of Hinduja Foundries Limited (HFL) with the Company and their respective shareholders and creditors, under Sections 391 to 394 of the Companies Act, 1956 subject to regulatory approvals. The Appointed Date for the scheme of amalgamation was October 1, 2016. The intended amalgamation has been approved by the shareholders at the Court Convened Meeting held on January 23, 2017 and through Postal Ballot on January 25, 2017. The Hon'ble National Company Law Tribunal, Chennai Bench (NCLT) which heard the Company's petition on April 18, 2017 sanctioned the scheme of amalgamation of HFL with the Company and their respective shareholders, and creditors. The NCLT Order was filed with the Registrar of Companies, Chennai and the scheme became effective on April 28, 2017. The Board of Directors of the Company has formed a Committee of Directors comprising of Mr. Dheeraj G Hinduja, Chairman, Mr. Vinod K Dasari, Chief Executive Officer and Managing Director, Mr. D J Balaji Rao and Mr. Sanjay K Asher, Directors as members of the Committee and authorised the Committee to do all such acts, deeds, matters and things as may be necessary for the purpose of giving effect to the Order of NCLT on the scheme of amalgamation of HFL with the Company including but not limited to issue and allotment of the equity shares of the Company to the eligible shareholders of the Transferor Company as on the Record date. Further to the receipt of noted letter from the designated stock exchange, the Board of Directors of the Company has fixed Wednesday, June 7, 2017 as the Record Date' for determining the shareholders of Hinduja Foundries Limited (Transferor Company), entitled to receive the equity shares of Ashok Leyland Limited (Transferee Company), under the Scheme of amalgamation sanctioned by NCLT. Consequent to the above, the issued, subscribed and paid-up equity share capital will stand increased from 2,845,876,634 equity shares of 1/- each to 2,926,534,926 equity shares of 1/- each. Consequent to the amalgamation of Hinduja Foundries Limited with the Company, Ashok Leyland Wind Energy Limited became an associate company of the Company As on March 31, 2017, the company has 24 Subsidiaries, 7 Associate Companies and 2 Joint venture companies.2017. During the year, the Company, Ashok Leyland Nissan Vehicles Limited (subsidiary) and Nissan Ashok Leyland Powertrain Limited, Nissan Ashok Leyland Technologies Limited (joint ventures), entered into restructuring and settlement agreements with Nissan Motor Co. Ltd, Japan (NML). As a part of the restructuring and settlement agreements, the Company acquired the entire shareholdings from NML in the subsidiary and joint venture companies resulting in all the three companies becoming wholly owned subsidiaries of your Company. During the year 2016-2017, Hinduja Leyland Finance Limited (HLFL) became a material subsidiary since the net worth of HLFL in the immediately preceding accounting year exceeded twenty percent of the consolidated net worth of the Company and its subsidiaries. In compliance with the requirements of SEBI Listing Regulations, Dr. Andreas H Biagosch, Independent Director of the Company has been appointed as an Independent Director in the Board of HLFL. Automotive Infotronics Limited, joint venture and Ashley Airways Limited an associate of the Company are under liquidation. The petition for voluntary winding up of Automotive Infotronics Limited was filed with the High Court of Judicature of Madras during March 2017 and the winding up process is expected to be completed during the financial year 2017-18. During the year under review Ashok Leyland (UK) Limited has initiated the process of voluntary winding up. The Board of Directors of Hinduja Leyland Finance Limited (HLFL), a subsidiary company of Ashok Leyland Limited, at its meeting held on 23 May 2017 decided to withdraw the Draft Red Herring Prospectus (DRHP) for the proposed initial public offering of equity shares of HLFL and accordingly the DRHP was withdrawn from the Securities Exchange Board of India on 16 June 2017. On 18 July 2017, Ashok Leyland announced the formation of a strategic alliance with SUN Mobility, promoted by Chetan Maini, founder of Reva and Uday Khemka, Vice Chairman of SUN Group. This global partnership between Ashok Leyland and SUN Mobility will leverage India's innovation and engineering potential to develop truly world class mobility solutions. SUN Mobility plans to revolutionise the transportation sector by deploying a unique open-architecture ecosystem built around its proprietary smart batteries and a network of quick interchange battery solutions. On 10 August 2017, Ashok Leyland announced the launch of Digital Market Place, an industry-first combination of four innovative digital solutions. Riding on the exponential smartphone growth, these digital solutions are simple to use, compatible with all smartphones, and work like any other, everyday app. The four digital solutions viz. i-Alert, ServiceMandi, E-diagnostics and Laykart will help customers manage their business with a simple tap, by making it simpler for them to log on to their business from anywhere and manage their operations with ease. On 17 November 2017, Ashok Leyland announced that it has entered into a Share Purchase and Shareholders Agreement with Everfin Holdings, shareholder of Hinduja Leyland Finance (HLFL), for acquisition of 2.04 crore shares of Rs.10/- each constituting 4.68% in the paid-up share capital of HLFL at a price of Rs.110/- per share. The total consideration payable works out to Rs 225.42 crore. Post the transaction, Ashok Leyland's shareholding in HLFL will increase from 57.22% to 61.90%. Consequent to Everfin Holdings' decision to sell part of its stake in HLFL, Ashok Leyalnd is acquiring the same along with other existing shareholders of HLFL. HLFL is a Non-Banking Finance Company. It clocked revenue of Rs 1486.31 crore and profit after tax of Rs 167.53 crore in FY 2016-17. On 24 November 2017, Ashok Leyland announced that consequent to the conversion of loans into equity, the company's shareholding in Optare plc will increase from 75.11% to 98.31%. The aforesaid conversion of loans into equity has no impact on profits and cash flows for the current financial year of Ashok Leyland as the investments in the equity shares and the loans given to Optare plc was fully impaired as of March 2017. Optare plc, a subsidiary of the company is situated in United Kingdom. Optare plc is involved in the manufacture of single decker, double-decker buses and electric buses for the UK and other export markets. Optare plc clocked revenue of 35 million and net loss of 15.7 million in FY 2016-17. On 27 November 2017, Ashok Leyland announced that it has entered into a Mutual Cooperation Agreement with Hino Motors Ltd. Japan where Ashok Leyland will utilise Hino's engine technology for Ashok Leyland's EURO-VI development and will support in development of Hino's engine parts purchasing in India for global operation. Hino and Ashok Leyland have had a cooperative agreement for engine production in India since 1986. By this mutual cooperation agreement, both companies will leverage each others' strengths in diesel engines to enhance their competitiveness. Ashok Leyland will enhance its competitiveness by jointly developing engines for BS-VI compliance in India through the engine technology of Hino Motors. Hino Motors will promote engine parts development in India by utilizing Ashok Leyland in India to strengthen Hino's competitiveness. On 17 January 2018, Ashok Leyland announced that it took the next step to secure long-term arrangements for its EV commercial vehicles by signing a Letter of Intent with Phinergy of Israel. The company and Phinergy will work towards adaptation of unique, competitive and sustainable solutions for high energy applications in the commercial vehicle space. Phinergy has developed cutting edge technology solutions for the use of Aluminium Air Batteries for EV and other applications. With Ashok Leyland, Phinergy will be tailoring its unique technology to meet the demanding high-energy requirements of commercial vehicles in the Indian market. On 30 March 2018, credit rating agency CARE Ratings upgraded the Long-term/Short-term bank facilities of Ashok Leyland to CARE AA+; Stable/CARE A1+ and reaffirmed the Commercial Paper program. CARE Ratings said in a press release that the revision in long-term rating of Ashok Leyland factors in the continuous improvement in its financial position in the past three years ended December 2017 supported by its strong operational and financial performance. Resultantly the capital structure has witnessed significant improvement in FY 2017 and 9 months ended December 2017. On 13 April 2018, Ashok Leyland announced that it has won another critical order from the Ministry of Defence (MOD). The contract is for supplying Ashok Leyland's High Mobility 10x10 vehicles (HMV 10x10) to carry the Smerch Rockets. This initial order is worth over Rs 100 crore. The scheme of amalgamation of three wholly owned subsidiaries namely,Ashok Leyland Vehicles Ltd,Ashley Powertrain Ltd and Ashok Leyland Technologies Ltd and the scheme has become effective from appointed date 01 April 2018. The Company has 21 Subsidiaries, 5 Associates and 2 Joint ventures as on 31 March 2019. Hinduja Leyland Finance Limited is a material subsidiary of the Company. During Q3 of the financial year 2019-20, the spread of the COVID-19 virus caused global disruption, with negative impact on human health, business enterprises and the global economy in general. The rapid outbreak of the COVID-19 pandemic during Q4 of FY 2019-20, has severely impacted the physical and financial health of people across India and to prevent the contagion in the Country, phases of nationwide lockdown was announced by the Government of India. The company suspended its production across all its factory locations since 24 March 2020 and resumed operations in its plants across the Country during second week of May 2020. The Company has 22 Subsidiaries, 5 Associates and 2 Joint ventures as on 31 March 2020. During the FY2020,the company incurred Rs 1,292 crore towards capital expenditure predominantly towards BS VI, MBP, Electric vehicles, Unit replacements, maintenance capex etc.,Also the company has invested Rs 300 crore in Hinduja Leyland Finance Limited, Rs 100 crore in Optare Plc, Rs 20 crore in Albonair India, Rs 22 crore in Vasuki (Special Limited Partnership) and Rs 4 crore in Ashley Aviation. During the FY2021,the company has issued and allotted on private placement basis, secured redeemable non-convertible debentures (NCDs) aggregating to Rs 600 crore. The Company had 26 Subsidiaries, 5 Associates and 2 Joint ventures as on 31 March 2021. Consequent to the acquisition of 58,500,000 shares of Rs 10/- each of Hinduja Tech Limited ('HTL') from Nissan International Holding BV, HTL has become a wholly owned subsidiary of the company. Consequently,Hinduja Tech (Shanghai) Co., Limited also became step down Subsidiary of the Company. During the year 2020-21, the Company has incorporated a wholly owned subsidiary in the name of Vishwa Buses and Coaches Limited to carry on the business of bus body building. The Company and HLFL have jointly incorporated a new Company with 50% holding each in the name of Gro Digital Platforms Limited (GDPL) during April 2021. The company has been declared as the 'Platinum Award Winner of Green Leaf Afforestation Award' in the Automobile sector for the year 2019, by Apex India Foundation in FY21. During the year 2020-21, the company has invested Rs 150 Crore in Optare Plc,Rs 90 Crore in Hinduja Leyland Finance Limited, Rs 70 Crore in Hinduja Tech,Rs 33 Crore in Vishwa Buses and Coaches Limited, Rs 19 Crore in Prathama Solar & Rs 5 Crore in Ashley Aviation. The Board of Directors of the Company at its meeting held on November 12, 2021 approved the Business Transfer Agreements (ETA) with Switch Mobility Automotive Limited (Step down subsidiary of the Company) and Ohm Global Mobility Private Limited (Fellow subsidiary of the Company) for transferring its Electrical Vehicle business and its Electrical Vehicle Mobility As A Service (EMAAS) business respectively with effect from 01 October 2021. The Company enhanced its product portfolio with CNG models in ICV trucks segment to cater to the boost in demand for alternate fuels in the e commerce and last-mile delivery applications. Further, product enhancements like High Horsepower Mining Tipper and Surface Tipper, helped it to strengthen presence in Construction and Mining industry. It pioneered in launching 8x2 Multi-Axle Truck with Dual Tyre Lift Axle and 6x2 Multi-Axle Truck with Single Tyre Lift Axle, which were well received during the year 2022. It added 71 new outlets during the year 2022 increasing the total count to 907 in the Aftermarket business. To keep up with the rising commercial vehicle operations in Northern and Eastern regions of India, it opened more than half of the new outlets in these regions. Penetration in LCV portfolio across geographies was made while retaining market leadership position in MDV bus segment in SAARC and GCC countries. It supplied an all-time high 1,125 units of completely built up units (CBUs) including bullet proof vehicles and 600 kits to the Indian army and in addition completed the execution of 711 Ambulances in record time under emergency procurement. After successful completion of the trials, Phoenix was launched in FY22 with flag off of 35 units to Uganda. In FY22, new product Bada Dost' was launched in the LCV segment. Bada Dost was awarded CV of Year and Pick up of the Year 2021-22 at the Global Awards for Retail Excellence presented by ET Now and World Leadership Congress. The Bada Dost also won the CII Design Excellence award 2021. During the year 2022, Company incurred Rs. 400 Crores towards capital expenditure for improving manufacturing capacity and capability covering LCV Engines, Frame Side member, SG Cast Iron, Cab Paint &Trim and Chassis Assembly; new products covering Project Vayu (CNG vehicles development), Low Cost EATS development & Emission migration Projects (BS Construction Equipment Vehicle {CEV IV} and BS VI Phase 2) and unit replacement & maintenance capex for sustenance. During the year 2022-23, Hinduja Tech Limited (HTL), a subsidiary of the Company, acquired Drive System Design Limited (DSD), known for developing innovative solutions for electrified propulsion systems. HTL allotted equity shares to Hinduja Automotive Limited, U.K. on preferential basis. Consequently, the Company's shareholding in HTL decreased from 98.76% to 74.25%. As at March 31, 2023, the Company's shareholding in HTL stands at 73.83%. During 2022-23, the Company launched the 42Ton and 44Ton Tractor trailer models, along with introduction of CNG variants in the Haulage segment. It launched 5 new products and their variants, which now has presence in over 25 countries in Africa for retail market operations. It launched Jeet 4x4 in Light vehicles segment during Defence expo. It added 80 new MHCV outlets & 73 new LCV outlets during the year, increasing the total count to 809 MHCV touch-points and 620 LCV touchpoints respectively. It launched key products in MHCV - Trucks (Domestic) that include Ecomet Star 1815HE, the first-in-industry 2620 6X2 LA, Partner Super, 42T & 44T Tractors which helped AL consolidate market position in respective segments.