eraj Hinduja’s ok Leyland sformational ney
The Indian commercial vehicle giant was already an established domestic brand name in the automotive sector when Dheeraj G. Hinduja assumed the Chairmanship of Ashok Leyland in October 2010 replacing R. J. Shahaney, who had held the position since 1997. It was, however, under the leadership of Dheeraj Hinduja that the company started to change into a global competitor in the automotive industry.
Before assuming the position of Chairman of Ashok Leyland, Dheeraj Hinduja was the CoChairman of the company for three years and backed by the strategic direction by the Hinduja Group and its unremitting innovation drive, pointed at an expansion mission around the world.
Dheeraj Hinduja's Contributions: Expansion and Globalisation
International expansion and capability building:
Ashok Leyland has achieved tangible international expansion and capability building with Dheeraj Hinduja being the company's chairman.
Ashok Leyland states that it has its operational presence in more than 50 countries all over the world with over 1,000 touchpoints and 10 assembly facilities as of 2024.
In its sustainability report 2022-23, Dheeraj Hinduja states that the company operates in 38 countries and is targeting its expansion in 50 plus countries. It will add distributors in 12 more countries and will introduce five new products with variants particularly in South Sudan and African market.
Ashok Leyland has ventured into Africa and other emerging geographies: for example, it has entered Southern Africa by entering into a strategic partnership in six Southern African countries with dealerships.
On the manufacturing and assembly footprint: The firm already had manufacturing and assembly plants in UAE (Ras Al Khaimah) and in other foreign nations such as in Leeds the UK.
The strategy to establish plants/CKD/assembly in Africa, ASEAN and CIS countries was publicly announced under the leadership of Dheeraj Hinduja.
The standalone turnover of Ashok Leyland on the domestic front saw a tremendous growth: Rs. 15,420.95 crore in 202021 to Rs. 21,764. 42 crores in 2021-22.
The financial metrics of the company show sign of improvement. According to an example, in FY24, Return on Capital Employed (standalone) has increased to about 37.58% compared to about 20.45% in FY23.
These figures indicate that Ashok Leyland increased its presence in the world, product line, and financial results under the leadership of Dheeraj Gopichand Hinduja.
Employment Growth Rate and Footprint
In FY23, the company mentions its presence in 38 countries and targets 50 countries.
On employee's diversification: As of August 2023, Ashok Leyland employed approximately 10,000 employees and had recruited trainees from 14 countries including African countries like Sudan under Dheeraj Hinduja's leadership takeover.
International Presence:
TheglobalpresenceofAshokLeylandbefore2010wasinto30pluscountries duetoitsexportsandnowitispresentinover48-50countriesotherthan India.
Exportsandinternationalbusinessofthecompanyhaveincreased,e.g.,the exportvolumein2011-12increasedby25%comparedtothepastyearto 12,852units.
In2017,theAshokLeylandledbyDheerajHinduja,wasaimingtoincrease exportshipmentstobetween15-20%ofproductioncomparedtothecurrent 10-12%levels.
Hence, it seems that with Dheeraj Hinduja in charge, Ashok Leyland has gained both in terms of global competitiveness and in terms of addressable export markets as well as in its financial ratios. Ashok Leyland is no longer just a domestic company but a more globally diversified commercial vehicle player.