Ashok Leyland goes in for organisational revamp

Ashok Leyland has gone in for an organisational revamp by which it will create three different divisions: truck, bus and power solutions.

“Each division will have an independent head. It will not be a separate strategic business unit,” said Vinod K Dasari, managing director, Ashok Leyland.

He added the revamp has been planned with a view to enhance shareholder value and customer experience.

To a query about the time line for the company to become one of the top 10 truck and top five bus-makers in the world, Dasari said, “We did have a five-year time-frame, but the markets have changed. For us, it is more of a goal. However, last year, we have become one of the top four bus-makers in the world.”

Four new launches in 2012-13
The commercial vehicle major has also lined up four launches during the current fiscal. These include two cargo carriers — A Truck (named as Boss for having a gross vehicle weight of eight-15 tonnes) and Partner (five-six tonnes). “Later, we will also launch N Truck, a 16-tonnes,” said Dasari.

The A Truck is expected to be launched in July and the N Truck in October. These products will be manufactured at the company’s Pantnagar facility and will have the company’s Czech Republic subsidiary, Avia’s, cabin, said Dasari.

The A Truck will help the company to cater to the infantry combat vehicle (ICV) category, the segment in which the company does not have a strong presence presently. “In the space where we are strong, including multi-axle, tipper and tractor, the drop was stronger. However, the drop in the ICV segment was lesser,” said Dasari.

He added, “The A Truck will also be shipped out to overseas markets.”

Sales balance
At present, the company has nearly 450 touch points across India, enabling access to parts and services across the country to ensure good growth. Last year, 20 per cent sales were from new dealership.

Dasari said 60-70 per cent of company sales used to be from South India three years ago, which has now reduced to 45 per cent. The company has reported a 4.3 per cent growth in North India, 4.8 per cent in the east, 4.3 per cent in the west and 0.7 per cent growth in the south.