SUMMER INTERNSHIP PRESENTATION

RAHUL PUROHITPGDM 3RD A.

SUMMER INTERNSHIP PRESENTATION

ANALYSIS OF PERFORMANCE OF ASHOK LEYLAND IN INFRA-TELECOM BUSINESS

AGENDACOMPANY PROFILE.PSB DEPARTMENT(POWER SOLUTIONS).AL PRODUCTS.ENGINE BUSINESS GROUP.WHAT IS A DG SET?GENSET MARKET.COMPANY COMMITMENTS.COMPANY ACHIEVEMENTS.MANUFACTURING FACILITIES.LEYPOWER GENSETS.PRODUCT REFERENCES.AL SERVICE NETWORK.SALES AND SERVICE CHANNEL.

AGENDAMARKET SHARE ANALYSIS.ANALYSIS OF AL PERFORMANCE.RESULTS & DISCUSSIONS.SUGGESTIONS & RECOMMENDATIONS.IMPLICATIONS FOR FUTURE RESEARCH.

COMPANY PROFILE

History • Ashok Leyland, the HINDUJA GROUP flagship

company in India, is a leading manufacturer of commercial vehicles with a products of vehicles of 19 seaters to 80 seaters in passenger models.

• The Company’s annual turnover exceeds US $ 1 billion. It has a production capacity of 77, 000 vehicles and 87,000 engines per annum. The Company exports to over 30 countries in Asia, the Middle East, Africa and South America.

COMPANY PROFILE

Manufacturing Plants –

– Number of plants – 6 (Engines)

– Total covered area - app. 437,000 sq meters– Number of employees – app. 12000

• R&D - State-of-the-art facilities• Technical / marketing tie-ups –

– ZF, Germany for manufacturing synchromesh

transmissions / gear boxes

– Weichai Power Co.Ltd., China – for diesel engines

marketing• The first Indian automotive manufacturer to

receive- ISO 9002 and QS 9000 certification.

COMPANY PROFILE

• The company claims to carry over 60 million passengers a day, more people than the entire Indian rail network. In the trucks segment the range varies from 16 ton to 25 ton range of trucks.

• However AL has presence in all truck ranges from 7.5 tons to 49 tons.

• Ashok Leyland has a joint venture with Nissan Motors of Japan in the year 2008, through which it is trying to improve its presence in the Light Commercial Vehicle segment. By mid of 2010 their first product will be rolled out in two versions- 1.25 tones diesel truck which will be first LCV for AL.

PSB DEPARTMENT

• To make better use of Engines produced in excess by AL manufacturing unit Power Solution Business was set up.

• But it came across a long way to attain the status of Power Solution provider than just being an Engine supplier.

• Market share of 95% in Marine engines market and substantial market share figures in the Special engines category stands as evidence to this fact

SALES IN PSB DEPARTMENT

• PSB offers Engines in three major categories: • Industrial Engines• Genset and • Marine Engines.

• PSB is selling Industrial engines (Special application engines) to Proprietary Equipment Manufacturers (PEM) who are requiring engines for special purposes such as agriculture, earth moving, road building etc., and Genset engines to Original Equipment Manufacturers (OEM) who are in the business of selling gensets with all enclosures to end users.

SALES IN PSB DEPARTMENT

AL PRODUCTS

– Commercial Vehicles –

Second largest manufacturer

More than 30 basic types of medium and heavy duty vehicles

for diverse applications in moving men and material

Vehicles for defense

– Engines – Diesel / Gas -

Marine engines

Diesel genset engines for 10-500 KVA

Industrial engines – powering L&T-Komatsu,

JCB, Caterpillar, Gujarat Apollo, Atlas Copco,

Gas genset engines – 40 & 62.5KVA

ENGINE BUSINESS GROUP Engines – fuel options

Diesel

Gas

Applications –

Marine (with gear boxes) for fishing, small cargo vessels & ferries

Diesel gensets – 10 to 250 KVA

Gas gensets - 40 & 62.5 KVA

Industrial & construction – 40 to 200 PS

Market Share –

– Marine - over 95%

– Genset – 28%

– Harvest combine – 95%

– Major players in Industrial & Construction segment

GENSET MARKET

India is today, fifth largest power market in the world compared to its eigth position in the last decade. India in the grip of a power crisis, generator manufacturers are coming with their innovations. Products like standby power generators, inverters, uninterrupted power supply systems and storage batteries are an expanding market.

Major drivers for Genset market in Indian economy :

Booming Economy

Increasing power demand

WHAT IS A DG?

• A diesel generator is the combination of a diesel engine with an electrical generator(often called an alternator) to generate electric energy. Diesel generating sets are used in places without connection to the power grid.

• The packaged combination of a diesel engine, a generator and various ancillary devices such as base, canopy, sound attenuation, control systems, circuit breakers, jacket water heaters, starting systems etc, is referred to as a generating set or a gen set for short.

COMPANY COMMITMENTS• Leypower Gensets are fully built DG sets solution

- powered by Ashok Leyland ‘s Engine,

- assembled and tested by Ashok Leyland, as per

customers requirement and supplied across the country

• Through Leypower we provide customer a “Single Window System”

for his pre and post sales requirements

• We have geographically distributed manufacturing network to

provide you a power solution at optimum cost

• We also have a team of dedicated Service Engineers spread across

the country to provide after sales support during and after warranty

• We are also in process of starting a new Engine facility dedicated to

Leypower Products from next financial year

COMPANY ACHIEVEMENTS

• In the year 2002, all manufacturing plants were ISO 14001 Certified with EMS.

• 8 out of 10 metro state transport buses in India are of AL.

• 98.5 % market share in Marine Diesel Engine market In India.

• Leading supplier of Defence vehicles in world.

MANUFACTURING FACILITIES

• Leypower DG Set Manufacturing

Facilities at:

1) Pune (4 plants) : Operational

2) Faridabad : Operationl

3) Kolkata : Operational

4) Pantnagar: Operational

5) Banglore : Operational

LEYPOWER GENSETS

LEYPOWER GENSETS

PRODUCT REFERENCES

Reliance Infocom– 6500+ numbers supplied since 2008-09

Reliance Web Store– 100 nos. so far

Reliance Petroleum– 150 nos. for retails outlets

Reliance JERP(jamnagar export refinery project)– 200 nos. order under execution

Reliance other units– 250+ nos.

PRODUCT REFERENCES @ TELECOM

• Indus Towers – 20000+ Till Dec’09

• Bharti Infratel- 3800+ Till Dec’09

• Aircel (Including TSP’s) – 7500+ Till Dec’09

• BSNL India Ltd – 1850+ Till Dec’08

PRODUCT REFERENCES @ MARINE• Market leader in 40 to 190 Hp Marine Engine Market

• Proven gas engines for Commercial Passengers Vehicles- major users DTC, BEST, GSTC

• Industry majors using Ashok Leyland engines as prime mover– L&T– Caterpillar– Ingersoll Rand– Atlas Copco– JCB– Greaves– Indital

AL SERVICE NETWORK

Sales and service channel

MAJOR COMPETITORS IN TELECOM MARKET

• Kirloskar• Cummins• Mahindra• Escorts• Volvo• Caterpillar• Eicher

MARKET SHARE ANALYSES-TELECOM

ANALYSIS OF ASHOK LEYLAND PERFORMANCE IN INFRA-TELECOM

BUSINESS

Do you provide towers to others?

Objective: The motive behind this Question was to know whether they provide tower for sharing or for their own company’s service only.

Analysis: From the data collected (sample size 6) we conclude that 16.67% or one out of six do not provide tower sharing.

According to you which mode of advertisement is efficient for the sale of dg sets in telecom sector?

OBJECTIVE: The underlying objective concerns with knowing the effective mode of selling the DG sets in telecom sector.ANALYSIS: From the response I conclude that direct marketing is the most efficient mode of advertisement and Ashok Leyland should use their selling statergy via direct marketing.

No. of circles in which your towers are located?

.

What is the kVA of the generator used for power back-up in telecom towers?

Objective: The motive behind the question was to know the use of different kVA of generator according to traffic on site.1.Normal site.2.Base control site3.Master control site

Analysis: We come to know at normal site 10-15kVA are used.At base control site 15-20kVA is used4.Master control site.At master control site 20-25kVA is used5.Base control site.

Are you satisfied with the performance of your specified generator?

Objective: The motive behind this question was to know the customer’s satisfaction with respect to the DG in use.

Analysis: I come to conclude that satisfaction level with the performance of specified generator is high although some suggestions were also given such as service problem, mode of payment availability of spare parts were suggested.

Do you know the different brands of DG sets available in the market?

Objective: the motive behind was brand recognition.

Analysis: I come to conclude that Cummins Mahindra and MahindraAshok LeylandKirloskar

Do occupies place in mind of customers

If you need a DG set ,on what criteria you will rate it? ( rank them)

SERVICE

ECO FR

IENDLY

EFFIC

IENCY

FUEL

CONSUMPTIO

N

VIBRATION/N

OISE

FLEXIBILIT

Y

BRAND NAME

AVAILABILIT

Y OF S

PARE PARTS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

4.50

1.67 1.83

4.33

3.33

1.67 2.173.33

AVERAGE RANKING

AVG.

SERVICE>>FUELCONSUMPTION>>VIBRATIONNOISE>>AVAILABILITYOF SPARE PARTS>>BRAND NAME>>EFFICIENCY>>FLEXIBILITY/ECO

If the Generator set were a personality/person, what would it be?

Rank the different service attributes according to your preference.

What strategy do you think that company should follow for damage / faulty DG sets under

warranty?

What are the different qualities of Ashok Leyland DG sets which influence you to buy it?

Which type of service package of AL you prefer?

According to you, where AL service is lacking?

Do you think that 3G will increase the no. of towers in huge?

Performance Evaluation ChartThis performance evaluation chart was filled by customers of Power Solution Business that is they have to fill and rate attributes from 1 to 5 in a given chart

Attribute Mahindra &mahindra Kirloskar Ashok Leyland Eicher Escorts Cummins

Service

Cost

Fuel efficiency

Eco-friendly

Vibration/noise

Flexibility

Availability of spare parts

Resale value

Serviceability

Brand name

Reliability/ durability

Maintenance cost

Efficient on full load

Easy to operate

Easy to install

Space coverage

Quality of canopy

Completion time for an order

Mode of payment

Discount offered by the company

. Over All Performance

Results & DiscussionsIt is concluded that delivery performance of Ashok Leyland is performing well as compared to its competitors.

Product reliability is good but there is scope for betterment through research and development.

In service sector Ashok Leyland is lacking and steps should be taken to improve service network and quality.

On supplier flexibility Ashok Leyland is performing well.

Ashok Leyland DG complies with CPCB norms.

Results & Discussions

In fuel consumption Ashok Leyland is rated good although AL’DG is technically superior hence better marketing strategy is to be followed to let Ashok Leyland capture more market.

Branding strategy needs improvement.

Availability of spare parts has to be improved upon.

The pricing strategy followed by AL is effective.

Mode of payment needs improvement.

Ashok Leyland DG is easy to operate and install.

Results & Discussions

Quality of canopy is good.

Space coverage is less as compared to its competitors.

Ashok Leyland performance on completion time of an order is effective.

Resale value of Ashok Leyland DG is good.

Customers value AL’s brand name highly.

Ashok Leyland gives good discount to its prime customers.

Conclusions & RecommendationsService has to be improved as we found out that Ashok Leyland lacks in its after sales service network and it is more time consuming.

Super silent DG’s on roof based towers or important public places e.g. hospitals need to be installed so emphasis should be laid on better acoustics and less space coverage.

More research and development needed for more ecofriendly and less vibration and noise DG.

More versatile DG’s are needed for adverse and remote areas.

The advertisement should be more vigorous.

Easy availability of spare parts should be there through dealer network.

Branding strategy needs further emphasis.

Implications For Future ResearchSuper silent DGs are more in demand.

Acoustics need betterment also canopy (space) reduction is to be done.

More fuel efficient DGs have demand

Research and development needed for more ecofriendly and more efficient dgs.

More versatile DGs for adverse and remote areas

INTERNAL ENVIRONMENT

major strength minor strength neutral minor weekness` major weekness

customer satisfac-tion

0 2 3 1 0

customer retention 0 2 2 2 0

service quality 0 0 1 3 2

sales force effec-tiveness

0 1 5 0 0

able dedicated force

0 0 5 1 0

visionary capable leadership

0 2 4 0 0

dedicated em-ployes

0 0 6 0 0

0.5

1.5

2.5

3.5

4.5

5.5

NO

OF

EMPL

OYE

ES

THANK YOU