a study of sales and distribution of ashok leyland

7/31/2019 A Study of Sales and Distribution of Ashok Leyland

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A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

1

INDEX

CHAPTER CONTENTS PG NO.

CHAPTER 1 INTRODUCTION

Objectives

Scopes

Assumption

Limitations

CHAPTER 2 COMPANY PROFILE

History

Organization structure

Product and service offer by the company

Market share

Future development

Reorganization and awards

CHAPTER 3 LITERATURE AND REVIEW

a. Primary datab. Secondary data

CHAPTER 4 RESEARCH METHODOLOGY

Data Analysis

CHAPTER 5 CONCLUSION

SUGGESTION

BIBLIOGRAPHY

QUESTIONNAIRE


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CHAPTER 1

INTRODUCTION


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CHAPTER 1

INTRODUCTION

An organizational study refers to the complete understanding of an organization in all

dimensions.

Ashok Leyland is a well known automobile manufacturing company in India. Ashok

Leyland believe that its historical success and future prospects are directly related to

combination of strengths. The referred unit is a core limb of Ashok Leyland, the

nations pioneering automobile manufacturer.

The study includes the brief study of the core departments of Ashok Leyland, Pune

Branch Office. Different officials working in various departments have provided very

important data in this report. Every effort has been made to understand the functions

and activities of various departments as well as the Sales and distribution process.


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INTRODUCTION TO THE PROJECT

This automobile, in fact, was a self-powered, three wheeler, military tractor that made

use of steam engine. The range of the automobile, however, was very brief and at the

most, it could only run at a stretch for fifteen minutes. In addition, these automobiles

were not fit for the roads as the steam engines made them very heavy and large, and

required ample starting time. Oliver Evans was the first to design a steam engine

driven automobile in the U.S.

The automobile industry finally came of age with Henry Ford in 1914 for the bulk

production in Products. This lead to the development of the industry and it first begun

in the assembly lines of his Products factory. The several methods adopted by Ford,

made the new invention ie) Products, popular amongst the rich as well as masses.

According to the history of automobile industry U.S, dominated the automobile

markets around the globe with no notable competitors. However, after the end of

Second World War in 1945, the automobile industry of other technologically

advanced nations such as Japan and certain European nations gained momentum and

within a very short period, beginning in the early 1980s, the U.S automobile industry

was flooded with foreign automobile companies, especially those of Japan and

Germany.

The current trends of the Global automobile industry reveal that in the developed

countries the automobile industry are stagnating as a result of the drooping Products

markets, whereas the automobile industry in the developing nations, such as India and

Brazil, have been consistently registering higher growth rates every passing year for

their flourishing automobile markets.


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INDIAN AUTOMOBILE INDUSTRY:

India is one of the fastest growing automobile industries in the world. After 1960, the

automobile industry saw rapid growth and many automotive manufacturers started

production.

The automobile industry in India is the seventh largest in the world with and annual

production of over 2.6 million units in 2009. In 2009, India emerged as Asias fourth

largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050,

the country is expected to top the world in Products volumes with approximately 611

million vehicles on the nations roads.

A well developed transport network indicates a well developed economy. For rapid

development a well-developed and well-knit transportation system is essential. As

Indias transport network is developing at a fast pace, Indian automobile industry is

growing too. Also, the automobile industry has strong backward and forward linkages

and hence provides employment to a large section of the population. Thus the role of

automobile industry cannot be overlooked in the Indian economy. Indian automobile

industry includes manufacture of trucks, buses, passenger Products, defence vehicles

,two wheelers etc.., The industry can be broadly divided into the Products

manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units.

The major Products manufacturers are Hindustan Motors, Maruti Udhyog, Fiat India

Pvt. Ltd, Ford India Ltd., General Motors Pvt. Ltd., Honda Seal Products India Ltd.,

Hyundai Motors India Ltd., Skoda India Pvt. Ltd., Toyota Kirloskar Motor Ltd., to

name a few.

The two wheeler manufacturing is dominated by companies like TVS, Honda

Motorcycle & Scooter India Pvt. Ltd., Hero Honda, Yamaha, Bajaj etc..,


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HEAVY VEHICLES MARKET:

Heavy vehicles market in India comprises of trucks, machines, ambulances and

school buses. The popular heavy vehicle brands in India are Volvo, Eicher, Ashok

Leyland, Telco, Ashok Leyland and Swaraj Mazda.

Following are the major players in the Indian Heavy Vehicles Market:

Ashok Leyland Motors is the largest automobile manufacturing company in

India that manufactures a wide range of heavy vehicles adhering to world class

standards. It is the market leader in commercial vehicles in all the segments,

be it heavy vehicles, medium size vehicles, small vehicles, buses or defence

vehicles. The heavy vehicles manufactured by Ashok Leyland Motors have

highly developed braking structure, high ground authorization, better direction

competence and a muscular body. The advanced engine imparted to these

heavy vehicles makes them a class apart from the other heavy vehicles running

on the Indian roads and Highways. Ashok Leyland Motors leads this segment

with a market share of 61%.

Ashok Leyland is an exclusively heavy vehicle manufacturing company

situated in Chennai and was initiated in the year 1948. It is one of Indias

biggest producers of heavy vehicles such as trucks, buses, military vehicles

and also the second biggest commercial vehicle firm in India heavy vehicle

division with a market share of around 27%. Ashok Leyland is also renowned

for producing auto spare parts and engines for marine and industrial

submission.

Eicher Motors was initiated in 3rd

September, 1960. The first firm to

manufacture the first tractor in India. The indigenously manufactured tractor

was introduced in the Indian market straight from Eichers Faridabad factory.

The history of the firm can be traced back to 1948, when Goodearth Company

was established for vending and repairs of imported tractors in the nation.

Swaraj Mazda, a tie up between Mazda and Swaraj Enterprise, Swaraj Mazda

represents advanced Indian expertise and manufacturing. The firm has

Research and Development improvement edge on international scale. The firm

manufactures various products such as Bus, Ambulance, Trucks etc.


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The modern automobile market in India has been considering key issues in the

process of growth:

Customer Productse, and not just service

Domestic as well as multi-national investments

Searing through cut-throat competition

Road safety

Anti-pollution norms

Co-ordination with government to enable advancement

Used vehicle trade

The future of Indian automobile market is bright as it looks forward to manufacturing

and implementing new innovations such as electric Productss as provided by Reva,

alternate fuels like CNG and LPG and probably customized internet automobile

orders.


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OBJECTIVE OF THE STUDY

To familiarize with business organization.

Getting practical experience regarding the organizational function.

To understand the functions of HR, Finance, Production and Marketing

departments.

To understand the culture in the organization and its effect on employees.

To get industrial exposure and experience.


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SCOPE OF THE STUDY

The scope of the study gives idea to develop the Ashok Leyland corporate

connections in the small scale medium enterprises. The study helps in improving

existing customers satisfaction level. This helps in retaining the existing customers.

The study helps in knowing the competitive advantage of Ashok Leyland corporate

connections. This helps the Ashok Leyland (CDMA) telecom industry in focusing the

key factors in which they get advantage. The study helps in knowing the existing

customers satisfaction towards Ashok Leyland and new customers wants and

services, and Ashok Leyland s services for the existing SME, the study also helps

in improving service provider, aggressive marketing, more value good services and

speed up connectivity.


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ASSUMPTION

Ashok Leyland is well known automobile manufacturing company, which is explore

world wild, it is assume that in the automobile sector Ashok Leyland play good role to

manufacturing well equipped heavy vehicles.

In upcoming time it is assuming that Ashok Leyland will launches the fuel efficiency

revolution in automobile industries.


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LIMITATION OF THE STUDY

The study has certain limitations under which it was Product out. As they were

unavoidable, so it was decided to Product out study in spite of all these limitations.

The limitations are as follows:-

1. The time period was limited and the study has to be Product out within thatperiod.

2. Some of the respondents were not fully co-operative and some of them feltannoyed to give an interview.

3. Ashok Leyland doesnt have any library which can facilitate any researchwork.

4. The study was restricted to Bangalore city only.5. Many details of the company were not revealed to the researcher.6. The management didnt share important marketing information and strategy of

the company which made the study incomplete.


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CHAPTER 2

COMPANY PROFILE


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CHAPTER 2

COMPANY PROFILE

Ashok Leyland has been a major presence in Indias commercial vehicle industry

since 1948, the year it was born. The origin of Ashok Leyland can be traced to the

urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first

Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter

automotive manufacturing.

They are one of the Indias leading manufacturer of commercial vehicles and special

vehicles, engines for industrial purpose, gen sets and marine requirement equipments.

For over five decades, Ashok Leyland has been the technology leader in Indias

commercial vehicle industry, molding the countrys commercial vehicle profile by

introducing technologies and product ideas that have gone on to become industry

norms.

Ashok Leyland at the time of its inception was known as Ashok Motors. It was

assembling Austin Products at the first plant, at Ennore, near Chennai. In 1950, the

company started assembly of Leyland commercial vehicles and soon the local

manufacturing under license from British Leyland, participation in the equity capital,

in 1954, the company was re christened Ashok Leyland.

In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND

INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture

between the Hinduja group, the Non Resident Indian Transnational group and IVECO

Fiat SPA part of the Fiat group and Europes leading truck manufacturing company.

Ashok P Hinduja is the chairman of the company. The Hinduja group also associated

with Ennore Foundries Limited, Automotive Coaches and Components Limited, and

Gulf Ashley Motors Limited.


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The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and

Ashok Leyland Project Services. The chief competitors of the company are;

Mahindra

Volvo

Ashok Leyland Motors

With a commanding strength of the about 12,000 employees the company is looking

forwards to enhance the scope of its action. It is aiming at expanding its production

operation overseas to make it a more globally accessible company. It is looking to

acquire a small to medium sized commercial vehicle manufacturers in China and

other developing nations, which have an established product line. An example would

be the 2007 acquisition of the Czech based Avias truck business rechristened Avia

Ashok Leyland Motors.

Since its inception, Ashok Leyland has been a major presence and these years have

been punctuated by a number of technological innovations which went to become

industry standard. This tradition of technological innovations and leadership was

achieved through years of vigorous in-house research and development.

From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in

haulage vehicles, from numerous special application vehicles to diesel engines for

industrial, marine and genset applications, Ashok Leyland offers a wide range of

products.


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Ashok Leyland has seven manufacturing plants -

Ennore Plant, Chennai.

Hosur Plants Unit I, Unit II and Unit II A.

Alwar, Rajasthan.

Bhandara, Maharashtra.

Pantnagar, Uttarakhand

Early products of Ashok Leyland included the Leyland Comet bus chassis sold to

many operators including Hyderabad Road Transport, Ahmedabad Municipality,

Travancore State Transport, Bombay State Transport and Delhi Road Transport

Authority.

In the popular metro cities, four out of five state transport undertaking buses come

from Ashok Leyland. Some of them like the Double Decker and Vestibule buses are

unique models from Ashok Leyland, tailor made high-density routes.

Statistics reveal that the company is Indias largest exporter of medium and heavy

duty trucks. It sells close to 83,000 medium and heavy vehicles each year. The

company has a near 98.5% market share in the Marine Diesel engine markets in India.

At 60 million passengers a day, Ashok Leyland buses Productsry more people than

the entire Indian Railway network.

The Five AL Values are:

1. International

2. Speedy

3. Value Creator

4. Innovative

5. Ethical


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HISTORY

The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by

independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded

Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948,

Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars.

The Company's destiny and name changed soon with equity participation by British

Leyland and Ashok Leyland commenced manufacture of commercial vehicles in

1955.

Since then Ashok Leyland has been a major presence in India's commercial vehicle

industry with atradition of technological leadership, achieved through tie-ups with

international technology leaders and through vigorous in-house R&D.

Access to international technology enabled the Company to set a tradition to be first

with technology. Be it full air brakes, power steering or rear engine busses, Ashok

Leyland pioneered all these concepts. Responding to the operating conditions and

practices in the country, the Company made its vehicles strong, over-engineering

them with extra metallic muscles. "Designing durable products that make economic

sense to the consumer, using appropriate technology", became the design philosophy

of the Company, which in turn has moulded consumer attitudes and the brand

personality

Ashok Leyland vehicles have built a reputation for reliability and ruggedness. The

5,00,000 vehicles we have put on the roads have considerably eased the additional

pressure placed on road transportation in independent India.

In the populous Indian metros, four out of the five State Transport Undertaking (STU)

buses come from Ashok Leyland. Some of them like the double-decker and vestibule

buses are unique models from Ashok Leyland, tailor-made for high-density routes.

In 1987, the overseas holding by Land Rover Leyland International Holdings Limited


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(LRLIH) was taken over by a joint venture between the Hinduja Group, the Non-

Resident Indian transnational group and IVECO. (Since July 2006, the Hinduja Group

is 100% holder of LRLIH).

The blueprint prepared for the future reflected the global ambitions of the company,

captured in four words: Global Standards, Global Markets. This was at a time when

liberalisation and globalisation were not yet in the air. Ashok Leyland embarked on a

major product and process upgradation to match world-class standards of technology.

In the journey towards global standards of quality, Ashok Leyland reached a major

milestone in 1993 when it became the first in India's automobile history to win the

ISO 9002 certification. The more comprehensive ISO 9001 certification came in

1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing

units in 2002. It has also become the first Indian auto company to receive the latest

ISO/TS 16949 Corporate Certification (in July 2006) which is specific to the auto

industry.


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ORGANIZATION STRUCTURE

ASHOK LEYLAND LTD.

MAMANGIN

CFOED

INTERNAL

AUDIT

EDPRODUCTDEVELOPM

-ENT

EDHR

ED&

COMPANY

SECRETARY

SPECIAL

DIRECTOR

BUSINESS

PLANNING

EDCONSTRUC-TION &

ALLIED

BUSINESS

SPECIAL

DIRECTOR

PLANNING

&

PORTFOLIO

MGMT

WHOLE

TIME

DIRECTOR

& COO

EDMFG

EDMKTG

ED

PRODUCT

PLANNING

EDINTER-

NATIONAL

OPERATIONS

EDSALES

&

SERVICE

MANAGING DIRECTOR


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ORGANIZATION STRUCTURE OF M/s. ASHOK LEYLAND LTD.

(AUTHORITY FLOW)

MANAGING DIRECTOR

WHOLE TIME DIRECTOR

EXECUTIVE DIRECTOR

GENERAL MANAGER

ASST. GENERAL MANAGER

DEPUTY GENERAL MANAGER

DIVISIONAL MANAGER

SENIOR MANAGER

SPECIAL DIRECTOR


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ASST. MANAGER

SENIOR OFFICER

OFFICER

MANAGER

DEPUTY MANAGER


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PRODUCT AND SERVICE OFFER BY THE COMPANY

PRODUCT PROFILE (Not Exhaustive):

Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons GVW

to 49 tons GVW(Gross Vehicle Weight). From 19 to 80 seaters in passenger transport,

a host of special application vehicles and diesel engines for industrial gensets and

marine application. Product profile can be broadly split into five categories viz.

Buses, Trucks, defence vehicles, special Vehicles and Engines.

BUSES

LYNX BS-II Viking BS-II 12 M Bus-BS II

Cheetah (Front engine) Viking BS-III Viking AL

Airport Tarmac Coach Vestibule Bus Panther (Rear engine)

Cruiser Viking CNG BS-III Falcon (Front engine)

Stag BS-II Double Decker

TRUCKS

4x2 Haulage models Ecomet

4x2 and Multi-axle Tipper Tractor

Multi Axle vehicles

DEFENCE VEHICLES

Short ChassisBus Field artillery tractor Comet 4x4

Topchi field Artillery tractor Long Chassis Bus

Stallion 6x6 Stallion truck fire fighting

SPECIAL VEHICLES

Hippo tractor Stallion Mk III Tipper Hippo Tipper

Beaver tractor Rapid Intervention Vehicle

Beaver Haulage Hippo Haulage


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ENGINES

Genset application Marine application

Industrial application DG sets for exports

VEHICLE SALES:

SALES TURNOVER & PROFIT:

YEAR SALES TURNOVER

Rs.Crore

NET PROFIT

Rs.Crore

2006-07 7168.17 441.28

2007-08 7729.12 469.31

2008-09 5981.07 190

2009-10 7244.71 423.67

Ashok Leyland registered a sales turnover of Rs.7729.12 crores during 2007-

08

compared to Rs. 7168.17 crores in 2006-07 showing an improvement of

7.8%

After a sluggish start in 2008, the sales turnover improved by 21% touching

Rs.7244.71 crores in 2009-10 compared to Rs.5981.07 crores in the 2008-09.

YEAR

SALES in Units

DOMESTIC EXPORTS

TOTAL SALES

In Units

2006-07 77069 6025 83094

2007-08 76022 7285 83307

2008-09 47619 6812 54431

2009-10 57947 5979 63926


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The net profit rose by 6.4% in 2007-08 to touch Rs.469.31 crores compared to

Rs.441.28 crore in 2006-07.

Similarly the net profit improved to 123% to touch 423.67 crores in 2009-10

against Rs.190 crores in 2008-09.

PRODUCTION DEPARTMENT OF ASHOK LEYLAND LTD.

Production is an organized process of manufacturing/producing goods and services

through the use of input resources of men, materials, money, machine, methods.

PRODUCTION MANAGEMENT STRATEGIES:

Long range strategies

Effective management of technology.

Innovation in product management and process technology.

Globalization in industry.

Goodwill inside and outside the organization.

An aggressive marketing strategy and risk taking ability.

Short range strategies

Location and layout.

Product selection and technology.

Capital selection and investment.

Flexible strategy of production.

Standardization of design.

Economy of size and variety.


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PRODUCTION SYSTEM:

Ashok Leyland employs a continuous production system, making use of special

purpose machines and produces standardized items in large quantities.

Characteristics

Standard products are manufactured.

Small work in progress in involved.

More maintenance is required.

Minimum cost of production per unit

Division of labour is made more efficient.


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DEPARTMENTAL STRUCTURE:

EXECUTIVE DIRECTOR

- MANUFACTURING

PLANT DIRECTOR

GENERAL MANAGER

- MANUFACTURING

DGM -MFG

AGM-ENGINES

DIV -MGR

SENIOR -MGR

EXECUTIVES

ASSOCIATES &

DAILY RATED

WORKERS

DGM -CHASSIS

AGM-CHASSIS

DIV -MGR

SENIOR -MGR

EXECUTIVES

ASSOCIATES &

DAILY RATED

WORKERS

DGMMFG

SERVICE

AGM-

MECHANICAL

DIVMGR

MECHANICAL

SENIOR -MGR

EXECUTIVES

ASSOCIATES &

DAILY RATED

WORKERS

DIVMGR

ELECTRICAL

SENIOR -MGR

EXECUTIVES

ASSOCIATES &DAILY RATED

WORKERS

DIVMGR

MECHATRONICS

SENIOR -MGR

EXECUTIVES

ASSOCIATES &DAILY RATED

WORKERS


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PLANT LAYOUT:

Product layout is employed in chassis assembly and engine assembly where in the

facilities are arranged in a line as per the process sequence of the component

manufactured.

Characteristics

Mechanized material handling.

Lesser work in progress.

Special purpose machines are used.

ENGINE ASSEMBLY:

The engine case arrives at the first section and it is fitted with cam shaft and

flywheel.

The pistons are attached one by one to the crankshaft.

Later fuel filters, oil coolers are attached.

Belt and gears for the running came is attached in the next section.

Finally the engine timing is set and sent for mounting on the body of a truck

or a bus.


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FRAME ASSEMBLY:

STAGE 1: Mounting of side members and cross members

STAGE 2: Mounting of Front Spring-rear, Front Spring-rear, Rear spring-front, Rear

spring-middle, Rear spring-rear.

STAGE 3: Fitting of Engine mounting brackets and FES mounting brackets

STAGE 4: Side members fastening to torque limit, Steering box bracket, Side

Members

reaming, Front tie channel mounting

STAGE 5: Fitment of FES rear brackets, Shock absorber brackets and Torque

checking

PASSING STAGE: Checking and tilting

STAGES OF CHASSIS ASSEMBLY:

Stage 1: Lay down regular

Stage 2: Fixing of I & U bolt.

Stage 3: Brake chamber.

Stage 4: Steering gear.

Stage 5: Silencer.

Stage 6: Fuel / water separator.

Stage 7: Air tank.

Stage 8: Fuel tank.

Stage 9: Engine mounting.

Stage 10: Air/fuel piping.

Stage 11: Propeller shaft.

Stage 12: ACE link assembly

Stage 13: Exhaust piping.

Stage 14: Radiator.

Stage 15: Tyre mounting.

Stage 16: Lubrication.

Stage 17: Front end structure (FES) Cab mounting.

Stage 18: Bumper.Stage 19: Steering.


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Now the cockpit of the truck is mounted on the body of the truck correctly and then it

is sent for a drive or to the storage area. For every 13 minutes a truck rolls out from

the factory and 135 chassis are assembled per day as per agreement.

Both these sections have a conveyor belt on which each process is Productsried on.

The belt keeps on moving and the operator has to complete his designated job or else

its nothing but an error.

PDI (PRE DELIVERY INSPECTION):

Testing of vehicle on real road conditions

The following are the various tests done to test the vehicle:

1. Speed test

2. Acceleration test

3. Vibration test

4. Torque tightening

5. Oil level and water level checking

6. Electrical components checking

7. Air leakage test

8. Grease level checking

9. Power steering hose routing and clamping

10. Road test


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PRODUCTION PERFORMANCE:

YEAR PRODUCTION

In Units

2006-07 83558

2007-08 84006

2008-09 54049

2009-10 64673

PLANT ENGINEERING:

Plant engineering is responsible for proper functioning of the plant by Productsrying

out maintenance operations such as electrical and electronics equipments

maintenance, fork lift charging and its repairing, repairing of pneumatic circuits etc..

It is also responsible for maintenance works Productsried out in the organisation. The

following are the various types of maintenance:

Predictive maintenance

Preventive maintenance

Breakdown maintenance

Routine maintenance

1. PREDICTIVE MAINTENANCE:

Predictive maintenance is done on assumption by experience before the occurring or

by any symptoms of occurring.

2. PREVENTIVE MAINTENANCE:

Preventive maintenance is work directed to the prevention of failure of a facility

3. BREAKDOWN MAINTENANCE:


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Breakdown maintenance is work which is Productsried out after a failure, but for

which advanced provision has been made in the form of spares, material, labour and

equipment

4. ROUTINE MAINTENANCE:

Routine maintenance is done on even time or on routine basis. It includes machine

lubrication, replacement of bulbs throughout plant to arrest building deterioration.


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DIVISIONS:

Plant engineering is divided into 4 divisions to Productsry out its functions. The

following are divisions of plant engineering:

Electrical

Mechanical

GWE(General Works Engineering)

Civil

PERIOD OF MAINTENANCE:

Period of maintenance is done on the basis of VED analysis. It is also known as time

based maintenance. Here VED stands for

V - Vital

E - Essential

DDesirable

ANALYSIS DURATION

V- Vital 6 months

E- Essential 9 months

D- Desirable Once in a year


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MARKET SHARE

INDIAN AUTOMOBILE MARKET:

Commercial vehicle makerAshok Leylandis targeting sales of 90,000 units next

financial year - a volume growth of around 38 percent over this fiscal's sales - and

hopes to garner 30 per cent of the market.

'We are looking at sales of around 90,000 units next fiscal. We hope to close this

fiscal selling around 65,000 units,' the company's chief financial officer K. Sridharan

told IANS.

'The sector is expected to grow by 15 per cent and our target market share is 30 per

cent,' he added.

AUTO SPECIAL

With its 75,000 units per annum Uttarakhand plant slated to go on stream March 5,

Ashok Leyland believes it will be able to cater to the northern, eastern and western

markets with much ease and at lower costs.

'Next year we will be rolling out around 25,000 units from Uttarakhand plant,' he said.

Nissan in talks with Leyland for small car
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The Rs 5,981-crore company plans to roll out around 1,000 trucks from its

Uttarakhand plant this month and will save handsomely from excise duty exemption.

Sridharan also said the company will be raising a debt of around Rs.700 crore over the

next two years to fund its capex plans.

'Our total capex - in our own plants and joint ventures - over the next two years is

estimated at Rs.2,000 crore. While Rs.700-800 crore will come from debt, the balance

will be met from internal accruals,' he added.

More India business stories

Ashok Leyland plans to invest around Rs.500 crore in its joint ventures and bulk of

that will go into the joint venture with Nissan Motor Company of Japan to roll out

light trucks.

The Chennai-based firm will also be launching about six new trucks on its new U

platform.

Some vital statistics regarding the automobile market in India has been mentioned

below:

India ranks 2nd in the global two-wheeler market

India is the 4th biggest commercial vehicle market in the world

India ranks 11th in the international passenger Products market

India ranks 5th

pertaining to the number of bus and truck sold in the world.

Marketing is concerned with the people and the activities involved in the flow of

goods and services from the producer to the consumer.

Ashok Leyland has been offering world class products to millions of customers to 40

countries across the world.
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Its main product line include Trucks, Buses, Defence vehicles and special vehicles

and engines for Indian and Overseas market.

Ashok Leyland is

The market leader in Indian bus market offering CNG, Double decker and

Vestibule bus variants.

The market leader and pioneer for multi-axle trucks and tractor- trailers.

Enjoys market supremacy in diesel engines for Industrial, Gen-set and

Marine applications .

Largest supplier of logistic vehicles to the Indian Army.

Offers Total Maintenance Solutions through maintenance contracts for its

products, relieving the customers of all maintenance worries.


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FUTURE DEVELOPMENT

VISION

Achieving leadership in the medium/heavy duty segments of the domestic commercial

vehicle market and a significant presence in the world market through transport

solutions that best anticipate customer needs, with the highest value -to-cost ratio.

MISSION

-Identifying with the customer.

-Being the lowest cost manufacturer.

-Global benchmarking our products, processes and people, against the best in the

industry.

QUALITY POLICY

Ashok Leyland is committed to achieve customer satisfaction by anticipating and

delivering superior value to the customer in relation to their own business, through the

products and services offered by the company and comply with statutory

requirements.

Towards this, the quality policy of Ashok Leyland is to make continual

improvements in the processes that constitute the quality management system, to

make them more robust and to enhance their effectiveness and efficiency in achieving

stated objectives leading to

1. Superior products manufactured as also services offered by the company.2. Maximum use of employees potential to contribute to quality and environment

by progressive up gradation of their knowledge and skills as appropriate to

their functions.

3. Seamless involvement from suppliers and dealers in the mission of thecompany to address customers changing needs and protection of the

environment.


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REORGANIZATION AND AWARDS

"As a technology leader in the commercial vehicle industry, Ashok Leyland is

passionate about excellence in engineering and quality. It further drives our ambition

to offer products with the best value for our customers," said Anuj Kathuria, Head of

Strategic Sourcing, Ashok Leyland Ltd. "WABCO strongly contributes to our success

through their outstanding results across our criteria for top quality."

A jury comprising Ashok Leyland managers from strategic sourcing, product

development, engineering and manufacturing named WABCO their gold award

recipient for superlative performance in quality results during 2009 and 2010.

"Everyone at WABCO-TVS is proud of the superlative recognition that Ashok

Leyland has awarded to our organization, particularly in their assessment of quality

systems at our manufacturing and logistics facilities," said P. Kaniappan, Managing

Director, WABCO-TVS (India) Ltd. "Winning Ashok Leyland's gold award for

quality excellence is another mark of our commitment to continuously achieve

breakthrough levels of quality in our products and services."

WABCO Wins Gold Award for Quality Excellence From Ashok Leyland, One of

India's Largest Manufacturers of Commercial Vehicles

A global technology leader and tier-one supplier to the commercial vehicle industry,

today announced that its WABCO-TVS subsidiary in India has been recognized with

a gold award for quality excellence from Ashok Leyland, one of India's largest

manufacturers of commercial vehicles.

Ashok Leyland offers a world class range of trucks, buses, special application

vehicles and engines across 20 countries worldwide. Currently, WABCO is adapting

for Ashok Leyland its OptiDrive modular automated manual transmission system, a

breakthrough in transmission automation technology and one of the most creatively

engineered products in WABCO's portfolio. WABCO's OptiDrive system is expected

to be in volume production in early 2011.


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A jury comprising Ashok Leyland managers from strategic sourcing, product

development, engineering and manufacturing named WABCO their gold award

recipient for superlative performance in quality results during 2009 and 2010.

"As a technology leader in the commercial vehicle industry, Ashok Leyland is

passionate about excellence in engineering and quality. It further drives our ambition

to offer products with the best value for our customers," said Anuj Kathuria, Head of

Strategic Sourcing, Ashok Leyland Ltd. "WABCO strongly contributes to our success

through their outstanding results across our criteria for top quality."

"Everyone at WABCO-TVS is proud of the superlative recognition that Ashok

Leyland has awarded to our organization, particularly in their assessment of quality

systems at our manufacturing and logistics facilities," said P. Kaniappan, Managing

Director, WABCO-TVS (India) Ltd. "Winning Ashok Leyland's gold award for

quality excellence is another mark of our commitment to continuously achieve

breakthrough levels of quality in our products and services."

"Ashok Leyland's gold award powerfully acclaims WABCO's quality excellence as

we continue to demonstrate game-changing capabilities in lean manufacturing that

offer competitive advantages for our customers in emerging markets," said Leon Liu,

WABCO President, Asia. "We are proud of WABCO-TVS for winning top honors in

quality at Ashok Leyland as we strive to grow demand for automated manual

transmissions worldwide, particularly in emerging markets where adoption of such

systems is expected to expand rapidly."


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CHAPTER 3

LITERATURE AND

REVIEW


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CHAPTER 3

LITERATURE AND REVIEW

c. Primary datad. Secondary dataThe methodology used for the study is through the collection of primary and

secondary data.

Primary Data:

Direct observation

Live discussion with the managers and the staff members.

The primary or the first hand data was collected with the help of handing out the

questionnaires for the survey. The respondents were asked how they feel about the

Ashok Leyland services. And there service experience and the satisfaction level and

what are the things that need improvement were also discussed in length at the

discussions.

Secondary data

Annual Reports

Business Journals

Existing Records

Website of the company.

The major source of secondary or supporting data is Internet. The information on

Telecom industry and company profile of Ashok Leyland as whole and the brand was

collected from the Internet, journals, company brochures, magazines and news paper


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MARKETING PROCESS:

CUSTOMER

MARKETING ENVIRONMENT:

Legislative changes related to commercial vehicles.

Improving efficiency in railway operations.

Customers demanding more from manufacturers.

Service products becoming important buying decision.

Entry of multi-national players.

Higher growth rate in LCV segment.

Directly competing with railways.

Road vs Rail share stabilizing

Shift towards Hub and Spoke model

DELIVERING

Sales

Service

Network Planning

UNDERSTANDING

Customer /Markets

Marketing Initiatives

SUPPORTING

Parts

AMC

Used Vehicles

Transport

Exchange


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BUSINESS INTEREST:

Medium & Heavy commercial vehicles.

Defence

Exports

Industrial applications

Spare parts

Service products

MARKETING STRATEGIES AND PLANS OF ASHOK LEYLAND:

NEW PRODUCT LAUNCHES

The company is expected to launch a slew of new products in the markets which is

expected to propel the demand for its products.

INCREASING GLOBAL FOOTPRINT

The company is now targeting new strategic markets with increased thrust on the

Asian and African countries.

PLANS TO MEET THE GROWING NEEDS OF THE MARKET

The company is constantly reviewing their strategies. They are moving into higher

value added jobs because it becomes very important to engage workmen fully and

also their efficient utilization.

FACTORS AFFECTING GROWTH:

Infrastructure development

Overall economic growth

Restrictions on overloading

Better operating economy of new trucks

Restrictions on the age of vehicles

Replacement demand due to changes in emission norms


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CURRENT PLAYERS IN THE COMMERCIAL VEHICLE INDUSTRY:

Ashok Leyland

Ashok Leyland Motors

Eicher Motors

Swaraj Mazda

Volvo

Tatra Udyog

Force-MAN

Asia Motor Works

Mercedes Benz

Scania

Hino Motors

Daimler -Chrysler

New entrants on the anvil- Mahindra Navistar,URAL


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ASHOK LEYLAND- DISTRIBUTION NETWORK:

PLANT

MARKETING

REGIONALSALES OFFICE

DEALERSHIP

CUSTOMER

CUSTOMERGROUP


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ASHOK LEYLAND- MARKETING NETWORK:

Regional offices- 10

Areas offices- 18

Regional sales offices-19

Parts warehouse-7

Main dealers- 43

Dealer outlets- 177

Authorized service centres- 145

Service bays- 2352

DISTRIBUTION CHANNELSALES:

REGION REGIONAL OFFICE AREA OFFICE

South-1 Chennai Chennai, Madurai, Eranakulam

South-2 Bangalore Bangalore, Hubli

South-3 Secunderabad Secunderabad

West-1 Mumbai Mumbai

West-2 Ahmedabad Ahmedabad

Central Nagpur Nagpur, Indore

North-1 Delhi Delhi, Lucknow

North-2 Jaipur Jaipur

North-3 Chandigarh Chandigarh

East Kolkata Kolkata, Bhubaneswar,

Jamshedpur, Guwahati


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SWOT ANALYSIS

STRENGTHS

1. Good Training System.2. Good Organizational Climate.3. High Market Share4. Skilled Employees5. Standard Quality ProductWEAKNESSES

1. High price2. Sales representatives are less

OPPORTUNITIES

1. Demand for heavy vehicle have steeped up all over the globe.2. Company provides better credit facility to dealers.

THREATS

1. High competition2. Promotional programmes of other brands3. Complicated national market4. New players entering the market.


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MARKETING STRATEGIES

ADVERTISING:

The need for advertising was felt by Ashok Leyland in 2006-07 when they had to

project the transformation that has occurred within Ashok Leyland, but as yet not

communicated to the public. They came up with a product related Ad campaign and a

Corporate campaign. Their aim was to let their target audience perceive their brand as

International, Innovative and Speedy, which has always been their core brand value.

At the All India PR awards 2007 conducted by the Public Relations Society of India

(PRSI). Ashok Leyland won the second prize for their corporate campaign. They gave

a prelude to the campaign by exhibiting their product range and their field of

pioneering.

This was followed by a three ad campaign.

Only an Ashok Leyland engineer will be inspired by Raag Madhuvanti to

create quieter luxury coaches.

only an Ashok Leyland engineer will calculate the rpm of the ball, when a

doosra is bowled.

only an Ashok Leyland engineer will watch titanic to spot the design flaw

in the ship.

Also a television commercial was aired in 2007. The commercial was made in two

languages- Hindi and Tamil. It was broadcast on mainline news channels for wider

coverage. There were translates placed at airports for greater visibility.

ASHOK LEYLAND- THE BRAND:

ENGINEERING YOUR TOMMOROWS has been Ashok Leylands Brand

promise. The tag line finds expression at two levels: on the hard core strategy level,

that is the sum total of the essential values of vehicle technology-safety, comfort,

economy and ecology; on the inspirational level, it denotes a warm and Productising

relationship with each stake holder in a unique way.


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Brand values

The two most visible- and recognized- components of the brand are the dynamic L

logo and the name of Ashok Leyland. The name has historic reasons- and timeless

meanings.

Ashok meaning Happy is the name of the companys founder Raghunandan Sarans

son. The second part of the companys name has come to cue the international aspect

while the first part, so unmistakably Indian, has un-declined the custom built

relevance of the companys products and operations in the Indian context.

Brand Ashok Leyland is essentially and experiential brand, its values felt in day to

day life- more palpably by its immediate customers and end users. The core of the

brand has always been innovative, international, speedy, moving with times- and

often-even ahead of it. The innards of Ashok Leyland vehicles have always been

contemporary. The core is now being matched by contours of the new, modern, future

ready range of vehicles.

In 2006, Ashok Leyland felt a need for change in perception of image among its

public after its research feedback by its brand study. Though the company has

pioneered many product concepts, and technologies, it was perceived to be a slow,

elderly and not modern brand. This made it necessary for Ashok Leyland to bring

about a shift in perception and reinforce the fact that the company was fundamentally

strong, masculine, traditional, sincere, transparent, financially managed and

innovative. As per the research, the company was a fairly strong brand with good

recall value. It was seen as an experiential brand, where the public related to it

thought very high of it but those away from the brand has only a fuzzy image of it.

Thus emerged the new Ashok Leyland with a new face. The tangible shift began with

a change in the typeface of the brand name along with a baseline. Also the company

came up with a corporate identity manual which was strictly to be followed by all.

The content specified brand name usage in various areas. Various advertisements

were aired to promote the brand. The launch of a new website opened to doors to theworld outside. Also screening of its corporate film helped them gain publicity.


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CHAPTER 4

STATISTICAL

METHODS


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CHAPTER 4

STATISTICAL METHODS

Q.1 Knowledgeable salesperson (about product)

Fig 4.1

INFERENCE:

77% of the Respondents were strongly agree with knowledgeable salesperson

18% of the Respondents were agreeing at the same time.

5% of the respondent were disagree with this questionnaire


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Q.2 Employees spent enough time with you before sales and during sales

fig. 4.2

INFERENCE:

55% of the respondent were strongly agree and says that employ spend enough

time before sales.

36% of respondent were agree with this questionnaire.

5% of respondent were neither agree nor disagree.

4% of respondent were disagree they said that employ not spend enough time

during sales or before sales.


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Q.3 Availability of the product in showroom

Fig 4.3

INFERENCE:

50% of the respondent were strongly agree and says that products are available

in showroom (Pareena motors ltd.).

36% of respondent were agree with availability of product in showroom

(Pareena motors ltd.).



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Q.4 offered a test drive

Fig 4.5

INFERENCE:

41% of the respondents were strongly agreed with test drive offered.

32% of respondent were agree with test drive offered.


9%of respondent said that they do not offer test drive.


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Q.5 All the commitments are fulfilled

Fig 4.4

INFERENCE:

Only 9% of the respondents were strongly agree with fulfilled of

commitments.

23% of respondent were agree with fulfilled of commitment.


18%of respondent were disagree.

5% of respondent were strongly disagree


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Q.6 Employees spent enough time with you after sales. (Service)

Fig 4.4

INFERENCE:

32% of the respondent were strongly agree with good service provided by

pareena motors.

36% of respondent were agree with good service provided by pareena motors.


5%of respondent are disagree with service provided by pareena motors.


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Ashok Leyland has wide range of models.

An interior accessory of ASHOK LEYLAND Products is attractive.


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Ashok Leyland Products long last.

.

Ashok Leylands party are available everywhere.


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CHAPTER 5

CONCLUSION


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CHAPTER 5

CONCLUSION

The summer internship and the resulted report have been of great help to the

researcher, as an aspirant manager, to understand the functioning of a major

establishment like Ashok Leyland. The summer internship has also revealed many

unknown facts about the working of a manufacturing unit and familiarize about the

assembling of commercial vehicles.

1. In this organization there is good employer-employee relationship.2. It targets 100% of its employees to be involved in its continuous improvement

activities by motivating them through various financial and non-financial

incentives.

3. There is a well integration of all the functional departments which facilitatesthe use of software like ERP.

4. To solve work related problems, QC (Quality Circle) and cross functionalteam are made effective.

5. Ashok Leyland has not got a foothold in the luxury trucks segment in itsdomestic market.

6. Advertisement is not given much importance.7. The company is increasing its global foot print by entering Asian and African

markets.


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SUGGESTION

The company should concentrate more on the luxury truck segments to keep a

strong hold in the market

The company should earmark more money for the advertisement and sales

promotion of its products. It helps to increase the brand awareness and image.

The company should concentrate on markets in the international arena where

its competitors are less powerful.


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BIBLIOGRAPHY

1) L.M. Prasad, Human Resource Management, 2nd

edition, New Delhi, Sultan

-Chand & Sons. Yr.2005.

2) Philip Kotler, Marketing Management, Millennium edition, New Delhi,

Prentice Hall of India (P) Ltd., Yr. 2001

3) Ashok Leyland In- House Journal Ashley News

4) www.ashokleyland.com

BOOKS

1) Marketing Management Philip Kotler & Kevin Lane Keller

2) Research Methodology C.R. Kothari

3) Business Statistics Gupta & Gupta

4) Consumer Behavior L.G. Shiffman & L.L. Kanuk

INTERNET

www.Ashok Leyland.com

www.Ashok Leylandmotors.com

http://en.wikipedia.org/wiki/Ashok Leyland_motors

http://en.wikipedia.org/wiki/Ashok Leyland_group

http://en.wikipedia.org/wiki/Indian_automobile_industry

http://www.Productswale.com/research/Productss/Ashok Leyland

http://www.Ashok

Leylandmotors.com/our_world/press_releases.php?ID=458&action=Pull

http://www.Ashok

Leylandmotors.com/our_world/press_releases.php?ID=500&action=Pull

www.thehindubusinessline.com


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Appendix

Questionnaire

ANNEXURE

Questionnaire:-

Name

Mobile Age

Location

Dear respondents,

I am a student of................................... As a part of my curriculum I am conducting a

study on Sales and distribution for ASHOK LEYLAND It would be a great help

if you please spare some of your time to fill this questionnaire. The responses would

be kept strictly confidential & use to data analysis.

Rate the following on a scale of 1-5


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Ashok Leyland Motor`s exclusive showrooms

Name:-

Age

Mobile no. ..

Place .

How do you rate Ashok Leyland`s showrooms (Pareena motors) with respect to the

following?

Rate the following on a scale of 1-5

1- Strongly disagree. 2- Disagree. 3- Neither agree nor disagree. 4- Agree 5-

Strongly agree

a study of sales and distribution of ashok leyland

Documents