Ashok Leyland's ISO 14001 Journey
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Case Details:
Case Code : OPER018
Case Length : 13 Pages
Period : 1990 - 2002
Organization : Ashok Leyland
Pub Date : 2003
Teaching Note : Available
Countries : India
Industry : Automobiles
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"We are concerned about the earth our children will
inherit. That's why we make sure our vehicles consume less, pollute less. This
concern is reflected in the manufacturing systems, the various processes, energy
conservation measures and conscious greening initiatives of the Company."
- Ashok Leyland's Green Mission Statement.
Background Note
The leading Indian manufacturer of Medium and Heavy Commercial Vehicles (M&HCV)
Ashok Leyland Limited (ALL) was formed in 1948 as Ashok Motors Limited (AML).
The company initially assembled cars and manufactured diesel engines and vehicle
chassis at its Ennore plant in the state of Tamilnadu. In 1950, AML entered into
an agreement with British Leyland1 for assembling Leyland commercial vehicles
through Land Rover Leyland International Holdings Limited (LRIHL). In 1954,
British Leyland bought equity in AML. Subsequently AML's name was changed to
Ashok Leyland Limited. From the same year, the company started using Leyland
designs for its products. In 1966, ALL became the first company to introduce
full air brakes in the country.
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The following year, it became the first company to introduce
double-decker buses on Indian roads. Over the next few years, ALL went on to
establish itself as a strong player in the Indian M&HCV markets. In 1980,
ALL established a plant at Hosur (Tamilnadu) for manufacturing engines and
assembling heavy duty and special vehicles.
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In 1982,
another manufacturing plant was set up at Alwar (Rajasthan) for
assembling a wide range of vehicles with an emphasis on passenger chassis. In 1987, a joint venture between the Hinduja Group2 and IVECO Fiat SpA3 bought a controlling interest in LRIHL and consequently in ALL
as well.
In 1990, ALL acquired its Hyderabad-based (Andhra Pradesh) supplier of
iron castings, Ductron Castings Ltd.4 During 1993-94, ALL received the
ISO 9002 and ISO 9001 certifications. The company established its second
plant at Hosur in 1994 for assembling of cargo vehicles. It also
established a plant at Bhandara (Maharashtra) for manufacturing
components such as gearboxes and axles. ALL employed around 14,000
people at its six manufacturing plants. |
Ashok Leyland's ISO 14001 Journey
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