ASHOK LEYLAND GETS ANGEL’S BUY

Ashok Leyland Ltd ( ALL) is the flagship company of the Hinduja Group, and one of the largest commercial vehicle manufacturers in India. Ashok Leyland’s products include buses, trucks, engines, defense and special vehicles. The government has introduced vehicle scrappage policy for commercial vehicles older than 15 years of age. As per the draft report, about 11 lakh Medium and Heavy Commercial Vehicles ( MHCV) would qualify for scrappage, which provides huge opportunity for the industry ( current industry size of 4 lakh units). Ashok Leyland is leading MHCV player and is set to capture the additional growth opportunity going ahead. After the GST rollout, Light Commercial Vehicle ( LCV) demand is picking up strongly due to consolidation of warehouses ( hub and spoke model). Moreover, improved rural demand coupled with boom in e- commerce will drive LCV demand. It plans to introduce a new product every six months to widen offerings and fully harness the demand potential besides targeting to capture new export markets.