INTRODUCTION

Ashok Leyland is a well-known automobile manufacturing company in

India. Ashok Leyland believes that its historical success and future prospects are directly related
to combination of strengths. The company vehicles have established a reputation for their
reliability, durability and superior performance. They contributed to the largest range of vehicles.
The company has also the distinction of being the only manufacturer of Double-Decker buses in
India. 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, Chennai. 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 manufacturing process.
 HISTORY OF THE ORGANIZATION:
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 Indias commercial vehicle
industry with a tradition 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
(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 liberalization
and globalization 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.
 PROFILE OF PRODUCT/SERVICE
1948 -The birth of Ashok Motors

Founded by Raghunandan Saran, Ashok Motors was set up in collaboration with Austin Motor
Company, England and incorporated on September 7th for the assembly of Austin cars.

1949 -The first A40 assembled

Production began in September at the factory situated at Ennore, south of Madras, and soon the
first indigenously assembled A40 Austin car was rolled out.

1950 -Ashok Motors and Leyland, UK agree to collaborate

An agreement was reached between the two companies and Ashok Motors got sole rights to
import, assemble and progressively manufacture Leyland trucks for seven years.

1951-Assembly of Leyland chassis commences

The first Leyland chassis assembled by Ashok Motors at Ennore were four Comet 350-engines
tippers sold to the Mangalore Tile Factory.

1954- Government approval for manufacture of commercial vehicles

The Government approved the progressive manufacture of Leyland commercial vehicles and a
license for the manufacture of 1,000 Comets a year was granted.

1955- Ashok Motors becomes Ashok Leyland

Named after Raghunandans son, Ashok, the company was renamed Ashok Leyland with equity
participation from Leyland Motors, Ltd.

1967- Indias first double-decker arrives

Titan - The first Indian-made double decker with 50% indigenous components was launched.
1969- A revolution in steering

For the first time, power steering was featured on commercial vehicles.

1970-A specially designed vehicle for the Indian Army

1,000 numbers of the 6x4 Hippo Tipper was designed and delivered to the Indian Army based
on its specific requirements.

1972-Production target upped to 10,000 vehicles a year

The license to manufacture 10,000 vehicles a year was granted

1974-Turnover tops Rs. 1,000 million

Ashok Leylands turnover for the first time crossed Rs. 1,000 million

1976-The Viking appears

The Viking, the first ever bus with an alternator and a unique front overhang that facilitated
front entry hit the Indian roads.

1978- A Cheetah bounds into the frame

Indias first rear-engine bus Cheetah was introduced with mixed reactions from drivers. While
it cut off much of the heat, their complaint was that they could not hear the engine!

1980-Hosur plant starts operations

The Companys second plant Hosur 1 was inaugurated by M. G. Ramachandran, the then
Chief Minister of Tamil Nadu.

-Two major new truck introductions

Indias first 13-ton truck Tusker with a 125 hp engine was launched followed by the countrys
first multi-axle truck Taurus.
1982-Indias first Vestibule bus introduced

Indias first vestibule or the articulated bus was introduced ushering in a whole new concept in
urban travel.

-Manufacturing footprint expands northwards

Two new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) were
inaugurated in March and August respectively.

1990-Technical Centre ready

The Companys Technical Centre at Vellivoyalchavadi, on the outskirts of Madras was ready
equipped with much-needed testing tracks.

1993-Technical Centre ready

The Companys Technical Centre at Vellivoyalchavadi, on the outskirts of Madras was ready
equipped with much-needed testing tracks.

1995-First driver training facility set up

The most comprehensive driver training facility in Indias private sector was set up at Namakkal,
right in the heart of Tamil Nadus trucking community.

1996-Hosur Plant II inaugurated

The second plant at Hosur was inaugurated by the then Prime Minister, DeveGowda, in
December.

1997-The Stallion rides for the Indian Army

The Stallion, an all-terrain logistic vehicle, was inducted into the Indian Army.

-Indias first CNG bus launched

As a major step in developing alternate fuel for mass transportation, Indias first CNG-powered
bus was handed over to the BEST (Brihan Mumbai Electricity Supply and Transport), Mumbai
2002-Another innovation in alternate fuel technology

The countrys first Hybrid Electric Vehicle was developed and showcased at Auto Expo 2002.

2005-First Indian Auto Company to receive BS 7799 certification

For Information Security Management System

-A Stag crosses the border

When the Srinagar Muzzafarabad road route was open for traffic, the first vehicle to cross from
the Indian side was a Stag bus, flagged off by Prime Minister Dr. Manmohan Singh and UPA
Chairperson, Mrs. Sonia Gandhi.

2006-Acquisition of AVIA

The truck business of Czech Republic-based AVIA came into the Companys fold

-Agreement inked with Ras Al Khaimah Investment Authority

For the setting up of a bus assembly plant in the UAE, this was later inaugurated by Highness
Sheikh Saud Bin Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah in 2010.

2007-Joint Venture forged with Nissan Motor Company, Japan

For manufacture and marketing of Light Commercial Vehicles

-Joint venture with Continental AG, Germany

The JV was with then Siemens VDO, for the development of automotive Infotronics.

-Carrying the dreams of a nation

An Ashok Leyland double decker bus carried the victorious World T20 cricket team, under the
leadership of M S Dhoni, on their lap of honour through the streets of Mumbai.
 -Joint Venture with the Alteams Group, Finland

For the production of HPDC (High Pressure Die Casting) extruded aluminum components.

2008-Joint Venture inked with John Deere, USA

For the manufacture of construction equipment products.

-Albonair, GmbH established

For the development of clean and green technologies.

2010-Indias first Hybrid CNG Plug-in Bus

Showcased at Auto Expo 2010 and later did service during the Commonwealth Games moving
VIPs and media at Pragati Maidan, New Delhi.

-Pantnagar plant inaugurated

The Companys modern, technologically world-class and largest plant went on stream with a
capacity to touch 75,000 vehicles.

-The U-Truck platform launch

The new, future-ready U-Truck platform entered the market with the promise of a holistically
superior level of trucking.

-Stake in Optare plc.

As part of its global bus strategy, the Company bought 26% stake in Optare plc, a well-known
bus maker in the UK. Subsequently, the stake was increased to 75.1% in January, 2012.

2011-A full range player with DOST

Entry into the LCV segment.

 -Enters the construction equipment space

October 2011 saw the launch of a new brand LEYLAND DEERE and the unveil of the first
product from the Ashok Leyland John Deere joint venture the 435 Backhoe Loader.

2012-Jan Bus

Worlds first single step entry, front engine, fully flat floor bus unveiled by Union Minister Shri
Kamal Nath

-U-3723

Introduced Indias first 37-tonne haulage truck with the highest payload of up to 27 tonnes
 ASHOK LEYLAND CORPORATE
PROFILE
For over six decades, Ashok Leyland has been a major presence in the Indian Commercial
Vehicle industry. As a technology leader, the company has pioneered technology and product
concepts that have become industry norms. Today, the company is the second largest medium
and heavy commercial vehicle manufacturer in the country and the flagship of the transnational
conglomerate, the Hinduja Group.

Ashok Leylands product range spans 2.5 T GVW (Group Vehicle Weight) to 497 GVM (Gross
Vehicle Weight) in trucks, from 18 seaters to 80 seaters in buses, a host of special application and
Defence Vehicles and diesel engines for industrial, genset and marine application. Over 700000
Ashok Leyland Vehicle ply and with close to 70000 stallion vehicle in use, Ashok Leyland is the
largest supplier of logistics vehicle to the Indian Army.

The Companys vehicle roll out of seven manufacturing plants located pan-Indian at Chennai,
Hosur (3 units),Alwar, Bhandara and pantnagar that combine specialisation in aggregate
manufacturing with flexibility in vehicle assembly. Ashok Leyland has a ISO/TS 16949
Corporate Certification and is also the first CV manufacturer in India to receive the OBD-II (On
Board Diagnostic) certification for BS IV-compliant commercial vehicle engine for SCR
(Selective Catalytic Reduction), ERG (Exhaust Gas Recirculation) and CNG technologies.

Overseas, the company has an integrated manufacturing facility at Ras-al khaimah, UAE.AVIA
Ashok Leyland Motors in Prague represented the companys presence in Europe which produces
and markets the famous D-Line series of trucks for the European markets including Hungary,
UK, Ireland, Spain and Slovakia, in addition to the Czech Republic. Ashok Leyland has acquired
75.1% stake in Optare plc. A well-known bus marker in UK, to give fresh impetus to its global
bus strategy.

Ashok Leyland Vehicle is exported to over 30 countries worldwide. Leaders in the bus markets
of Sri Lanka, Bangladesh and Mauritius, the Company also has significant presence in the
Middle East and Africa. Fresh inroads are now being made in the CIS and Latin America
markets.

The Companys wide-spread customer base is served through an all-India sales and service
network, supplemented by over 450 service points. A national helpline and a bouquet of service
products ensure total customer care.

Defiance stands for the global capability to deliver end-to-end services in design, engineering,
prototyping, testing and validation through Defiance Technologies. Sophisticated, high-end
testing is offered through Defiance Testing and Engineering, Detroit while technology-enabled
manufacturing and enterprise solutions are provided through Defiance-tech.

Albonair GmbH is a completed solution provider for reducing automotive emission and has, in
the short period since inception in 2008, developed the completed 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 vehicle.

The Company has forged several 50:50 Joint Ventures (JV) with global leaders for expansion and
diversification. The JV with Nissan Motors Company, Japan, for Light Commercial Vehicle has
fructified with the launch of Dost, which is already a market leader in its segment. The JV with
John Deere, USA, marked Ashok Leylands entry into the high-potential construction equipment
segment and the first product from this combine, the 435 Backhoe loader, under the brand
Leyland Deere is already making its presence felt. The Company also has JVs with the
Alteams Group, Finland, to manufacturing High Pressure Die Casting extruded aluminium
product and with Continental AG, Germany, for the design, development and adaptation of
information product and service for the transportation sector.
 MISSION, VISION, QUALITY POLICY
MISSION:

Identifying the needs of the customer.

Being the lowest cost manufacturer.

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

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.

To be Top 5 in Manufacturing of buses

To be Top 10 in Manufacturing of Trucks

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

Superior products manufactured as also services offered by the company.

Maximum use of employee is potential to contribute to quality and environment by

progressive up gradation of their knowledge and skills as appropriate to their functions.

Seamless involvement from suppliers and dealers in the mission of the company to
address customers changing needs and protection of the environment.
 MANUFACTURING PLANTS:
Ashok Leyland has seven manufacturing plants the mother plant at Ennore near
Chennai, three plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the
assembly plants at Alwar, and Bhandara and state-of-the-art facility at Pantnagar. The total
covered space at these seven plants exceeds 6, 50,000 Sq.m and together employ over 11,500
personnel.

ENNORE

Spread over 135 acres, Ashok Leyland Ennore is a highly integrated Mother Plant
accounting for over 40% ALL production. The plant manufactures a wide range of vehicles and
house production facilities for important aggregates such as Engines, Gear Box, Axles and other
key in-house components

HOSUR : UNIT 1

Established in 1980, Hosur-I is the engine-manufacturing center within the Ashok

Leyland production system. Apart from producing various types of diesel engines (including the
engines manufactured under license from Hino of Japan) and CNG engines, the plant also
manufactures and assembles heavy duty and special vehicles, Axles, AGBs, Marine Gear Box,
etc. The facility is spread over 103 acres and is innovatively laid out, optimizing the use of all
resources.

HOSUR : UNIT 2

Ashok Leyland established this state-of-the-art production facility in 1994 at Hosur.

Spread over 236 acres, Hosur II houses finishing and assembly facilities including sophisticated
painting facilities. The complex also houses one of the largest press facilities in India for
pressing frame side members. Laid out with an eye for the future, Hosur II has won acclaim from
several automotive experts who have visited the facility.
 HOSUR : UNIT 2A

Ashok Leylands brand new Cab Panel Press Shop is an imposing addition to the
industrial skyline of Hosur. At 800 m above sea level, it is also the tallest in the Hosurindustrial
belt. This state-of-the-art facility is housed in a 99-acre expanse with a built up area of over
15,000 sq.m. The Shop is equipped to stamp select panels for Cargo cab, G-45 and C-45 FES -
totally, 55 panels and their variants. Right now it houses eight presses and has the provision to
accommodate four more. The versatility of the presses can be utilized for making panels of
complex shapes and profiles with appropriate tooling and dies.

ALWAR(RAJASTHAN):

Established in 1982, the Alwar Unit in Rajasthan is an assembly plant for a wide range of
vehicles with an emphasis on passenger chassis, including CNG buses, situated close to the
northern market.

BHANDARA(MAHARASHTRA)

Ashok Leyland's Bhandara Unit houses manufacturing and assembly facilities for
sophisticated synchromesh transmission and also has facilities for assembly of vehicles.

PANTNAGAR(UTTARAKHAND):

Set over 190 scenic acres, the Pantnagar plant of Ashok Leyland is also its largest and one of the
most integrated manufacturing facilities in Indian commercial vehicle industry. On 200,000 Sq.m
of built up area, it houses best in class industrial architecture combined with the latest
manufacturing technologies that is also ecology sensitive.

Designed on lean manufacture principles, process control for high quality of output and
flexibility to manage variety with quick changeovers are built into the machine and process
selection. The factory boasts of latest generation equipment sourced from global leaders in Japan,
USA, Europe and India.
 ORGANIZATIONAL CHART OF ASHOK
LEYLAND LTD.
MANAGING DIRECTOR

CFO ED ED ED SPECIA ED SPECIAL

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ORGANIZATION STRUCTURE OF ASHOK LEYLAND LTD.

(AUTHORITY FLOW)
VARIOUS DEPARTMENT AND FUNCTIONS
The major functional areas of the unit and the major departments which oversee those areas are
catalogued as follows:

THE FIVE AL VALUES:

1. International
2. Speedy
3. Value creator
4. Innovator
5. Ethical

DEPARTMENTS:

1. HR Department
2. Finance Department
3. Marketing Department
4. Production Department
5. Supply Chain Management
6. Quality Management Department
7. Safety Department
8. Medical Department
9. Transport Department
10.Systems department
11.R & D
12.Security Department