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    Case Study On Ashok Leyland

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    Anushree Srivastava
    Vipin Sondhi, the managing director and CEO of Ashok Leyland, will step down from his position on December 31, 2022 after only two years in the role. Ashok Leyland is an Indian automotive manufacturer and the second most successful commercial vehicle maker in India. It saw declines in revenue, net profit, and sales volumes in 2013-2014 compared to the previous year, reflecting challenges in the overall automobile sector. To address the declining performance, Ashok Leyland took cost-cutting measures such as reducing workforce, cutting executive salaries, and offering a voluntary retirement scheme for employees while continuing investments in new product development.

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    Case Study On Ashok Leyland

    Uploaded by

    Anushree Srivastava
    48 views11 pages
    Vipin Sondhi, the managing director and CEO of Ashok Leyland, will step down from his position on December 31, 2022 after only two years in the role. Ashok Leyland is an Indian automotive manufacturer and the second most successful commercial vehicle maker in India. It saw declines in revenue, net profit, and sales volumes in 2013-2014 compared to the previous year, reflecting challenges in the overall automobile sector. To address the declining performance, Ashok Leyland took cost-cutting measures such as reducing workforce, cutting executive salaries, and offering a voluntary retirement scheme for employees while continuing investments in new product development.

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    Case study on Ashok Leyland

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    Vipin Sondhi, the managing director and CEO of Ashok Leyland, will step down from his position on December 31, 2022 after only two years in the role. Ashok Leyland is an Indian automotive manufacturer and the second most successful commercial vehicle maker in India. It saw declines in revenue, net profit, and sales volumes in 2013-2014 compared to the previous year, reflecting challenges in the overall automobile sector. To address the declining performance, Ashok Leyland took cost-cutting measures such as reducing workforce, cutting executive salaries, and offering a voluntary retirement scheme for employees while continuing investments in new product development.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    48 views11 pages

    Case Study On Ashok Leyland

    Uploaded by

    Anushree Srivastava
    Vipin Sondhi, the managing director and CEO of Ashok Leyland, will step down from his position on December 31, 2022 after only two years in the role. Ashok Leyland is an Indian automotive manufacturer and the second most successful commercial vehicle maker in India. It saw declines in revenue, net profit, and sales volumes in 2013-2014 compared to the previous year, reflecting challenges in the overall automobile sector. To address the declining performance, Ashok Leyland took cost-cutting measures such as reducing workforce, cutting executive salaries, and offering a voluntary retirement scheme for employees while continuing investments in new product development.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Case study on Ashok Leyland

    SUBMITTED TO :- DR. DEEPTI KIRAN


    GROUP MEMBERS NAME ENROLLEMENT NUMBER
    AMANDEEP TIWARI 22BSPDDO1C019
    ANUPA GAJRAJ 22BSPDDO1C025
    ANUSHREE SRIVASTAVA 22BSPDDO1C027
    ASHISH KUMAR 22BSPDDO1C031
    AUM SWASTIK PANDA 22BSPDDO1C038
     Vipin Sondhi is the managing director and chief executive of commercial vehicles maker Ashok
    Leyland - who was hired after an extensive head-hunting exercise that lasted more than a year -
    will step down from his position on 31 December within two years of appointment.26-Nov-2021
    introduction

     Ashok Leyland is an Indian multinational automotive manufacturer, and the


    headquarter is in Chennai.
     It is owned by the Hinduja Group. It was founded in 1948 as Ashok Motors and
    became Ashok Leyland in the year 1955. Raghunandan Saran is the Founder of
    Ashok Leyland.
     Ashok Leyland is the second-most successful manufacturer of commercial vehicles
    in India , the third-most successful manufacturer of buses in the world and the
    tenth-most successful manufacturers of trucks.
     Ashok Leyland also makes spare parts and engines for industrial and marine
    applications. Ashok Leyland claimed to be in the top 10 global commercial vehicle
    makers.
     With the corporate office located in Chennai, its manufacturing facilities are in 
    Ennore, Bhandara, two in Hosur, Alwar and Pantnagar.
     Ashok Leyland also has overseas manufacturing units with a bus manufacturing
    facility in Ras Al Khaimah (UAE), one at Leeds, United Kingdom and a joint venture
    with the Alteams Group for the manufacture of high-press die-casting extruded 
    Aluminium components for the automotive and telecommunications sectors.
    Partnership products

     Hino Motors Automobiles


     Rosoboronexport & ELCOM commercial vehicle
     IIT Madras Engines
     Sun Mobility
     Iveco partnership
     ETG Group
    objective

    Ashok Leyland ltd aims to expand its


    presence in the growing light commercial
    vehicle (LCV) market in India and other
    countries on the back of the all-new and
    modular Phoenix platform.
    Analysis
     In year 2013-14, Ashok Leyland revenue declined by 20% and the net profit margin by 93%.
     Negative performance reflected the performance of the Indian automobile sector , which is
    declined by 2%,recording Rs.2117.65 billion sales revenue as against the previous year’s
    Rs.2160.00 billion.
     After loss Mr. dasari said “rather than sit back and cry about problems that were created by
    external factors , we decided to use the downtown as an opportunity to fix our self”. After this
    Ashok management work with more flexible & adaptable to the changing business environment.
     To increase its efficiency Ashok make changes in 2013-14
    1. Reduced work force around 1200 casual workers.
    2. Cut the salary packages of its executives by 5%
    3. In November 2013, company announced a Voluntary Retirement scheme(VRS) for its executives
    and around 500 executives(10% of the total executive strength)opted for the scheme &
    company also planned to come up with a VRS scheme for workers.
    4. To overcome the challenge of declining sales revenue , company concentrating on the sale of
    non – core business products to improve the revenue of the company.
     According to the CFO, The management of Ashok planned to continue its cost-cutting measures
    until the end of 2015 to improve its financial and operational position without ignoring the focus
    on capital expenditure decisions, the management had invested around Rs 2000 to 2500 million
    on developing new products during the year.
     With the entry of international commercial vehicle manufactures in the Indian automotive industry, the
    competition in the industry is increased. The Top manufactures in India were TATA Motors and Ashok
    Leyland with total share in market of around 90%.

     During the year 2013-14, the management’s objective was to improve the export margins to 20% to 25%
    in the long run.

     In P &L A/C for the year ended 31 march 2014 :-


    2012-13 2013-14 Loss
    (in million) (in million) (in million)
    1. Total Net Revenues 124,812.00 - 99434.27 = 25,377.73
    2. Manufacturing expenses 91,231.33 - 76,025.93 = 15,205.4
    3. Gross Profit 33,580.67 - 23,408.33 = 10172.34
    4. Operating expenses 24,815.99 - 21,742.71 = 3073.28
    5. Total expenses 116,047.32 - 97,768.64 = 18278.68
    6. Operating profit 8,764.68 - 1,665.62 = 7099.06
    7. Profit before tax 4,707.06 - 912.19 = 3794.87
    8. Net profit 4,337.06 - 293.81 = 4043.25
     Revenue details for the year ended 31 March,2014:-
    2012-13 2013-14 Loss
    (in million) (in million) (in million)
    1. Revenue from Operations
    a. Sale of Products 134316.04 - 106081.29 = 28234.75
    b. Revenue from Services 1382.55 - 1024.862 = 3073.28
    c. Other Operating Revenues 2781.22 - 2076.93 = 704.29
    2. Total Revenue from Operations 132985.59 - 105608.45 = 27377.14
    3. Total Revenue From Other Sources 623.52 - 665.21 = (41.69)

     Balance Sheet as on march 31, 2014 :-


    2012-13 2013-14 Loss
    (in million) (in million) (in million)
    1. Total Liabilities and Assets 130,967.02 - 128,079.96 = 2887.06
     Domestic and Export Sales Volumes for the year 2013-14

    DOMESTIC EXPORTS
    SEGMENTS 2012- 2013-14 CHANG 2012-13 2013-14 CHANGE
    13 E (%)
    (%)
    M&HCV BUSES 46,913 38,709 -17.49 7,562 7,104 -6.06
    M&HCV 221,77 -26.99 11,962 16,709 39.68
    TRUCKS 6
    M&HCV TOTAL 268,68 -25.33 19,524 23,813 21.97
    9
    LCV BUSES 47,827 -10.51 3,054 2,254 -26.27
    LCV TRUCKS 476,69 -18.33 57,446 50,989 -11.24
    5
    LCV TOTAL 524,52 432,111 -17.62 60,503 77,056 -12
    2
     Additional Information :-
    Parameter 2012-13(Amt Rs.) 2013-14(Amt Rs)
    1. Market price per share 21.95 23.70
    2. Dividend paid per share 0.60 Nil
    3. Book value per share 16.74 16.72
    CONCLUSION

    Ashok Leyland aims at providing commercial


    vehicles with world class technology that is
    relevant, appropriate and affordable . In a
    atmosphere that nature the creativity and
    innovation 1000+ product development team seeks
    to harness and adopt technology that provide value
    to customers as well as safety and environment
    issues.

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