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Ashok Leyland-Nissan LCV Plant location at Pillaipakkam

MoU signed with the Govt. of Tamil Nadu for acquiring 380 acres of land The Ashok Leyland-Nissan LCV project crossed a significant milestone with the signing of a Memorandum of Understanding with the Government of Tamil Nadu for acquiring 380 acres of land to locate the facilities of the joint venture companies at Pillaipakkam, 40 kms off Chennai. The integrated plant will be utilised to set up the vehicle and powertrain manufacturing facilities and a technology development unit for the three companies of the joint venture that was formed in May 2008. The working of these companies has already been initiated and the joint venture is on course to roll out the first vehicle by 20102011. Exports are expected to account for 20% of the first phase capacity of 100,000 LCVs. The two partners also announced the top management structure of the three joint ventures which reflects the shared responsibilities and control drawing on the domain strengths of each of the companies including the critical functions of product development, quality, manufacturing and procurement. Andy Palmer, Corporate Vice President, Nissan Motor Company Ltd., Light Commercial Vehicle Business Unit said, “We are now in the ready to start real world operations in India. With the acquisition of the land in Tamil Nadu, we can now start the construction of the two manufacturing sites for vehicles and engines and we look forward to co-operating with our partner, Ashok Leyland, for a frugal yet high quality vehicle production.”

V. Sumantran, Executive ViceChairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd., said: “Taking into account the secular growth trends of the Indian economy and export opportunities, the joint venture will help both parent companies address the future market. The products likewise anticipate future growth of expectations and will offer customers new levels of performance and experience.” Combined investments to exceed Rs. 40 billion Ashok Leyland also announced its long-term plans in the MDV segment under the MoU with the Government of Tamil Nadu. The Company envisages further investments at Ennore, Hosur and new locations including a Green-

field site, near Chennai. These investments will create, over a period of time, integrated facilities for engines, gear boxes, press shops, chassis and parts. The operations will enjoy 21 years’ concessions of VAT refund. Investments are scheduled to be completed in 7 – 8 years. R. Seshasayee, MD, said: “The joint venture with Nissan is a major step in our plans to be a full range player and we are confident that we can meet our production targets by leveraging the combined expertise, market insights and experience of the two partners. The combined investments we have planned in our JV with Nissan and for our own medium and heavy duty vehicle production reflect our commitment to the state of Tamilnadu where we plan our next cycle of growth.”

Seen at the signing ceremony with the Chief Minister of Tamil Nadu, Kalignar M. Karunanidhi are (from left to right) R Seshasayee, MD, Ashok Leyland; Takashi Terada, GM-LCV India Project Office, Nissan; G P Hinduja, President, Hinduja Group; Dr V Sumantran, Executive Vice-Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd; Dr Andy Palmer, Corporate Vice President, Nissan Motor Company Ltd., Light Commercial Vehicle Business Unit; Dheeraj G Hinduja, CoChairman, Ashok Leyland, S Sripathi, Chief Secretary and M F Farooqui, Principal Secretary (Industries).

Ashley News / October 2008

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BusinessSuperbrand Ashok Leyland has once again been declared a ‘Business Superbrand’. In total, 74 Business Superbrands were chosen at this second edition.

V S Ravichandran, Regional Manager – North, receives the trophy on behalf of Ashok Leyland from L K Advani, Leader of Opposition and former Deputy Prime Minister

Ashok Leyland forms Albonair in Germany

New venture to focus on advanced emission control systems Ashok Leyland has formed a new company, ALBONAIR GmbH, in Dortmund, Germany which will focus on the development, production and sales of exhaust after-treatment systems for environment-friendly diesel engines. Albonair will engage in R&D and product development initially in the area of SCR aftertreatment systems with an emphasis on design innovation and enhanced customer value. “We already had a group of scientists and technologists who were assisting us in our R&D efforts to develop vehicle emission treatment systems and products. Therefore, it made eminent sense to start a company with them and formalize the working arrangement,” said R Seshasayee, MD. While the Dortmund headquarters will be the central hub for research and development, it will cater to the requirements of emerging markets to conduct local customer application development for vehicle and engine manufacturers. Decision on pro-

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Scientists at Albonair’s test lab in Dortmund, Germany.

duction locations is expected in the coming months. Dr Georg Huethwohl who has been a pioneer in this technology and Dr Rene Ruedinger, have been appointed as Managing Directors of the Company. The compelling rationale for formation of the Company is that regulations for diesel exhaust emissions are getting stricter worldwide. The Euro 4 norms, currently in vogue in Europe, are expected to be introduced in India and China, soon. The Asian region offers enormous market

opportunities for innovative exhaust after-treatment systems. While the demand will increase significantly in the next few years, these markets will look for costeffective products, requiring innovative solutions. Over the longer term, these cost effective systems are also expected to find application in Europe and the USA. Eventually, Albonair expects to branch out into a broader range of technologies, all aimed at reduced vehicle emissions in conformance to evolving standards of regulations worldwide.

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news New product showroom at AALM Kamal Nath, Union Minister for Commerce and Industry, inaugurated a product showroom at AVIA Ashok Leyland Motors (AALM) early September.

The new facility is used to display trucks, engines and rear axles. It would also be a sales point for spare parts and promotional merchandise. Pre-delivery

inspection and handing over vehicles to dealers/transport companies would happen here. The showroom also includes a hall for holding training sessions.

Union Minister Kamal Nath hands over keys of an AVIA truck to dealer Jiri Helus. To his right is R Seshasayee, MD. At the extreme left is Marcus Pauels, COO, AALM.

CNG buses in Vijayawada

J. N. Amrolia, ED-C&AB, handed over a cheque for Rs 30 lakhs to the then District Collector of Hosur, Dr Santoshbabu, towards development activities in the region. Also seen in the picture are (second from right) G Soundarajan, GM-Hosur I and (third from right) Akbar Khan, DGM-P&A, Hosur I.

The Andhra Pradesh State Road Transport Corporation (APSRTC) operates 94 CNG buses all Ashok Leyland - in Vijayawada. And encouraged by the performance of these buses in terms of operational efficiency and savings, APSRTC has decided to operate these buses to various destinations within Krishna District. Vinod K Dasari, WTD, who at-

tended the felicitation function for drivers and conductors at the Vidyadharapuram depot, said that the CNG-run buses operating in Vijayawada were the most fuel-efficient in the country. U. Sudhakar Rao, ED-APSRTC, announced that the CNG bus fleet size would soon touch 100 and five more Luxura buses would also be added, taking the number to 10.

Microsoft Award for Ashok Leyland Ashok Leyland received the Microsoft Security Strategy Award 2008 in the ‘General Industry’ category. On an all-India basis, four Awards were given away from among 200 participant companies in the IT, Banking, Pharma and General Industry categories.


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Largest auto parts warehouse opened at Hosur news

Ashok Leyland inaugurated its biggest warehouse in Hosur in July. The warehouse is outfitted with the latest equipment, is scientifically laid out and is strategically located between the Company’s two largest plants on the Bangalore-Chennai highway. Spread over two lakh sq feet and stocking over 20,000 spare parts, it is the biggest of Ashok Leyland’s nation-wide network of 10 warehouses which delivers genuine replacement parts and branded Leyparts to customers across the country. The warehouse is equipped to handle every kind of request – from the smallest part like pins to large assemblies such as driver cabins. ‘Faster deliveries from our new warehouse will enable our customers to shorten their down time substantially and will result in considerable cost saving. This is yet

another step by Ashok Leyland towards its commitment to provide superior service to its customers’, said V M Hombali, SD, Customer Care. To commemorate the occasion, the first consignment of spare parts to support the fleet of Ashok Leyland’s Stallion trucks in the Indian Army, was flagged off.

AMPL outlet in Anantapur

Automotive Manufacturers Private Limited (AMPL) opened a new workshop in Anantapur in July this year. The 12th workshop of AMPL in the state of Andhra Pradesh, this state-of-the-art facility on NH7 has 20 bays and apart from the usual facilities, offers 24x7 helpline, mobile service, towing facility and accident repairs. R N Rao, SD-Sales and Marketing, inaugurates the facility. To his right is Rajiv Sangvi, ED-AMPL Andhra Pradesh and to his left is V M Hombali, SD-Customer Care.

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40 city buses flagged off Forty Ashok Leyland semi-low floor Viking buses were flagged off by Mange Ram Gupta, Transport Minister, Haryana in August. These buses would ply in Chandigarh.

Ashok Leyland announces Joint Venture with John Deere for construction equipment. More on this in the next issue of Ashley News.