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.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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.

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.

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1] The UK based British Leyland Motor Corporation was formed in 1968 after the merger of Leyland and British Motor Holdings. Its name was changed to British Leyland Ltd. in 1975.

2] The Hinduja Group is a transnational conglomerate headquartered in Europe. It is involved in banking and finance, transport, energy (oil), technology, media and telecom businesses.

3] IVECO Fiat SpA was created by the merger of Fiat Veicoli Industriali SpA (Italy), Unic (France), and Magirus Deutz AG (Germany) in 1975. It is a part of the Italy based global automobile major Fiat.

4] Ductron Castings Limited was set up in the early 1970s. Due to financial troubles, it was referred to BIFR in the mid 1980s.


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