CHAPTER 1

INTRODUCTION

2
 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
nation‟s 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.

3
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.

4
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 Asia‟s 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 nation‟s 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
India‟s 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..,

5
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 India‟s
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 Eicher‟s 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.

6
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.

7
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.

8
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 customer‟s satisfaction level. This helps in retaining the existing customer‟s.
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
customer‟s 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.

9
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 that
period.
2. Some of the respondents were not fully co-operative and some of them felt
annoyed to give an interview.
3. Ashok Leyland doesn‟t have any library which can facilitate any research
work.
4. The study was restricted to Bangalore city only.
5. Many details of the company were not revealed to the researcher.
6. The management didn‟t share important marketing information and strategy
of the company which made the study incomplete.

11
 CHAPTER 2
COMPANY PROFILE

12
 CHAPTER 2
COMPANY PROFILE
Ashok Leyland has been a major presence in India‟s 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 India‟s 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 India‟s
commercial vehicle industry, molding the country‟s 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 Europe‟s 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.

13
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 Avia‟s 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.

14
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 India‟s 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

15
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

16
(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.

17
 ORGANIZATION STRUCTURE

ASHOK LEYLAND LTD.

MANAGING DIRECTOR
MAMANGIN

ED ED ED ED SPECIAL ED SPECIAL
CFO INTERNAL PRODUCT HR & DIRECTOR CONSTRUC- DIRECTOR
AUDIT DEVELOPM COMPANY TION &
-ENT SECRETARY BUSINESS ALLIED PLANNING
PLANNING BUSINESS &
PORTFOLIO
MGMT

WHOLE
TIME
DIRECTOR
& COO

ED ED
MFG MKTG

ED ED
INTER-
PRODUCT NATIONAL
PLANNING OPERATIONS

ED
SALES
&
SERVICE

18
ORGANIZATION STRUCTURE OF M/s. ASHOK LEYLAND LTD.

(AUTHORITY FLOW)

MANAGING DIRECTOR

WHOLE TIME DIRECTOR

EXECUTIVE DIRECTOR

SPECIAL DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGER

DIVISIONAL MANAGER

SENIOR MANAGER

19
 MANAGER

DEPUTY MANAGER

ASST. MANAGER

SENIOR OFFICER

OFFICER

20
 A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

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 Chassis Bus 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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 A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

ENGINES
Genset application Marine application
Industrial application DG sets for exports

VEHICLE SALES:

SALES in Units TOTAL SALES

YEAR DOMESTIC EXPORTS In Units
2006-07 77069 6025 83094
2007-08 76022 7285 83307
2008-09 47619 6812 54431
2009-10 57947 5979 63926

SALES TURNOVER & PROFIT:

YEAR SALES TURNOVER NET PROFIT

Rs.Crore 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.

22
 A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

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.

23
 A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

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.

24
 A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

DEPARTMENTAL STRUCTURE:

EXECUTIVE DIRECTOR
- MANUFACTURING

PLANT DIRECTOR

GENERAL MANAGER
- MANUFACTURING

DGM -MFG DGM -CHASSIS DGM –MFG

SERVICE

AGM-ENGINES AGM-CHASSIS

AGM-
MECHANICAL
DIV -MGR DIV -MGR

DIV –MGR DIV –MGR DIV –MGR

ELECTRICAL MECHATRONICS
SENIOR -MGR SENIOR -MGR MECHANICAL

SENIOR -MGR SENIOR -MGR SENIOR -MGR

EXECUTIVES EXECUTIVES

EXECUTIVES EXECUTIVES EXECUTIVES

ASSOCIATES & ASSOCIATES &

DAILY RATED DAILY RATED
WORKERS WORKERS

ASSOCIATES & ASSOCIATES & ASSOCIATES &

DAILY RATED DAILY RATED DAILY RATED
WORKERS WORKERS WORKERS

25
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.

26
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.

27
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

28
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:

29
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.

30
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
D – Desirable

ANALYSIS DURATION

V- Vital 6 months

E- Essential 9 months

D- Desirable Once in a year

31
MARKET SHARE

INDIAN AUTOMOBILE MARKET:

Commercial vehicle maker Ashok Leyland is 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

32
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.

33
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.

34
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 the
company to address customers changing needs and protection of the
environment.

35
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.

36
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."

37
CHAPTER 3
LITERATURE
AND REVIEW

38
 CHAPTER 3
LITERATURE AND REVIEW

c. Primary data
d. Secondary data
The 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

39
MARKETING PROCESS:

DELIVERING UNDERSTANDING
Sales Customer /Markets
Service
Marketing Initiatives
Network Planning

CUSTOMER

SUPPORTING
Parts
AMC
Used Vehicles
Transport
Exchange

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

40
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

41
 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

42
ASHOK LEYLAND- DISTRIBUTION NETWORK:

PLANT

MARKETING

REGIONAL
CUSTOMER
SALES OFFICE
GROUP

DEALERSHIP

CUSTOMER

43
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 CHANNEL – SALES:

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

44
SWOT ANALYSIS

STRENGTHS
1. Good Training System.
2. Good Organizational Climate.
3. High Market Share
4. Skilled Employees
5. Standard Quality Product

WEAKNESSES
1. High price
2. 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 competition
2. Promotional programmes of other brands
3. Complicated national market
4. New players entering the market.

45
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 Leyland‟s 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.

46
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 company‟s founder Raghunandan Saran‟s
son. The second part of the company‟s name has come to cue the international aspect
while the first part, so unmistakably Indian, has un-declined the custom built
relevance of the company‟s 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 the
world outside. Also screening of its corporate film helped them gain publicity.

47
CHAPTER 4
STATISTICAL
METHODS

48
 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

49
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.

50
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.).
14% of respondent were neither agree nor disagree.

51
Q.4 offered a test drive

Fig 4.4
INFERENCE:
41% of the respondents were strongly agreed with test drive offered.
32% of respondent were agree with test drive offered.
18% of respondent were neither agree nor disagree.
9%of respondent said that they do not offer test drive.

52
Q.5 All the commitments are fulfilled

Fig 4.5
INFERENCE:

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

commitments.
23% of respondent were agree with fulfilled of commitment.
45% of respondent were neither agree nor disagree.
18%of respondent were disagree.
5% of respondent were strongly disagree

53
Q.6 Employees spent enough time with you after sales. (Service)

Fig 4.6
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.
27% of respondent were neither agree nor disagree.
5%of respondent are disagree with service provided by pareena motors.

54
Ashok Leyland has wide range of models.

An interior accessory of ASHOK LEYLAND Products is attractive.

55
Ashok Leyland Products long last.

Ashok Leyland’s party are available everywhere.

56
CHAPTER 5
CONCLUSION

57
 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 facilitates
the use of software like ERP.
4. To solve work related problems, QC (Quality Circle) and cross functional
team are made effective.
5. Ashok Leyland has not got a foothold in the luxury trucks segment in its
domestic market.
6. Advertisement is not given much importance.
7. The company is increasing its global foot print by entering Asian and African
markets.

58
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.

59
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
2) Research Methodology
3) Business Statistics
4) Consumer Behavior
Philip Kotler & Kevin Lane Keller
C.R. Kothari
Gupta & Gupta
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

60
 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

61
 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

62