Valuation of Ashok Leyland

AL was a leading commercial vehicle manufacturer in India. It offered a wide range of products and services catering to the requirements of different industrial segments. In the trucks segment, AL manufactured vehicles with a capacities ranging from 2.5 Ton Gross Vehicular Weight (GVW) to 49 Ton GVW and in the bus segment, its vehicles ranged from 18 seater to 88 seater buses. The company also manufactured special purpose vehicles for Indian Defense services and engines for industrial, marine, and genset applications (Refer to Exhibit-III for AL’s Product Range). AL’s origins can be traced back to the year 1948.

Motors (Ashok) with its headquarters in Chennai, Tamil Nadu. Ashok started its operations that year as an assembling unit of Austin cars (A40 and A70 cars) in collaboration with Austin Motor Company, England. Ashok continued to move ahead by offering quality and standard products to the customer in the Indian market. In the year 1950, Ashok collaborated with UK-based Leyland Motors (Leyland) and reached to an agreement to import, assemble, and manufacture Leyland trucks for seven years. Following this, Ashok got the Government of India’s (GoI) approval to manufacture 1000 Leyland commercial vehicles per year.