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Ashok Leyland, the flagship company of the Hinduja group, holds a prominent position in the domestic medium and heavy commercial vehicle (M&HCV) sector. With a strong brand presence, it boasts a diverse distribution and service network across India and operates in 50 countries. This fully-integrated manufacturing entity is headquartered in Chennai.

The company has established driver training institutes across India and has successfully trained over 800,000 drivers since its inception.

Here are key points to note:

Market Leadership: Ranked as the second-largest commercial vehicle manufacturer in India’s medium and heavy commercial vehicle segment, it also stands as the eighth-largest bus manufacturer worldwide and the fifteenth-largest truck manufacturer globally.

Segment Performance: M&HCV Truck Segment: In FY22, the company witnessed approximately 44% growth in its M&HCV Trucks segment sales (excluding Defence vehicles) in India. It expanded its product line-up to include CNG models in the ICV trucks segment to meet the increasing demand for alternative fuels in ecommerce and last-mile delivery applications. Additionally, the introduction of products like High Horsepower Mining Tipper and Surface Tipper bolstered its presence in the Construction and Mining sectors. The company took a pioneering step by launching an 8×2 Multi-Axle Truck with Dual Tyre Lift Axle and a 6×2 Multi-Axle Truck with Single Tyre Lift Axle [2].

M&HCV Bus Segment: In FY22, the M&HCV Bus segment (excluding Defence vehicles) experienced around 11% growth in sales in India. The company achieved a notable market share of approximately 27% in the M&HCV Bus and Truck segment [2].

LCV Segment: Ashok Leyland continues to excel with industry-leading SSI/CSI, minimal defects in products, low warranty costs, and high service retention through its network of 547 outlets, achieving a service market share of 70.0%. Its new product ‘Bada Dost’ received accolades as the ‘CV of the Year’ and ‘Pickup of the Year 2021-22’. The company is set to launch three new products in FY23 for the domestic market [3].

Defence: In FY22, the company achieved a record supply of 1,125 units of completely built-up units (CBUs), including bullet-proof vehicles and 600 kits. It also executed the delivery of 711 Ambulances to the Indian Army under emergency procurement. Further expansions are underway in Light Vehicles and new applications on the Super Stallion platform, targeting export markets [3].

Foundry Division: The Foundry Division primarily caters to the automotive industry with products like Cylinder Blocks, Heads, and Tractor Housings. In FY22, this division increased production by 20% and achieved a sales growth of 12% compared to FY21 [3].

Revenue Mix FY22: Commercial Vehicle – 88% Financial Service – 12% [4].

Geographical Split FY22: India – 89% outside India – 11% [4].

International Market: The Company has been dedicated to expanding its global presence, focusing on retail markets in Africa and strengthening its network in SAARC and GCC countries. Overall, it observed a 37% growth in international market sales over FY21. It successfully penetrated the LCV portfolio across various geographies while maintaining a leadership position in the MDV bus segment in SAARC and GCC countries [2].

Manufacturing Facilities: Ashok Leyland operates 5 manufacturing plants in India and 1 each in the UAE, Bangladesh, and Sri Lanka [5] [6].

Distribution Network: In FY22, the company added 71 new outlets, bringing the total count to 907 primary touch-points. With the rise in commercial vehicle operations in Northern and Eastern regions of India, more than half of these new outlets were opened in these areas [3].

Fundraise: During FY22, the company issued and allotted secured redeemable non-convertible debentures (NCDs) totalling Rs. 200 Crores through private placement. Additionally, it availed fresh secured rupee term loans amounting to Rs. 450 Crores. The company also repaid rupee term loan instalments worth Rs. 12.50 Crores as per schedule [7].

Subsidiary: Hinduja Tech Limited (HTL) ceased to be a wholly owned subsidiary of the company due to the exercise of stock options by HTL employees under the ‘Hinduja Tech Limited Employees Stock Option Plan 2017’. The company currently holds a 98.91% stake in the paid-up equity share capital of HTL [8].

Transfer of Business: In FY22, the company transferred its Electric Vehicle business to Switch Mobility Automotive Limited, a step-down subsidiary. It is also in the process of transferring its E-MaaS (Electro-Mobility as a Service) business to Ohm Global Mobility Private Limited, another fellow subsidiary [8].

Capex: During FY22, the company allocated Rs. 400 Crores towards capital expenditure, focusing on enhancing manufacturing capacity and capabilities, introducing new products, and sustaining existing units [9].

Changes in Key Management Personnel (KMP): Mr. Vipin Sondhi, the Managing Director and CEO, stepped down from the Board on December 31, 2021. Mr. Dheeraj G Hinduja was appointed as the Executive Chairman (Whole-time) of the Company, effective from November 26, 2021, for a three-year term [8].

Investments: In FY22, the company invested Rs. 10 Crores in Gro Digital, Rs. 4 Crores in Ashley Aviation, and Rs. 3 Crores in Ashley Alteams. It also converted a Rs. 4 Crore loan into equity in Albonair GmBH. Furthermore, the company reversed an impairment in equity investment in Optare Plc for Rs. 781 Crores. Notably, there were impairments of Rs. 350 Crores during FY22, involving Hinduja Energy (Rs. 107 Crores), Albonair GmbH (Rs. 239 Crores), and Ashley Aviation (Rs. 4 Crores) [9].