In 1987, by buying out shares from the British investors LRLIH Ltd; the Hindujas acquired majority control in the southern auto giant Ashok Leyland Ltd. The competition for acquisition was tough: Bajaj Auto was also in the fray. German engineering giant, MAN, was also keen to have a share.

There was a lot of expectations on ALL evolving as a very large engineering conglomerate. I remember ALL’s first press conference in Chennai soon after the Hindujas took control. There was the promise to build capabilities to export sophisticated vehicles not just to developing countries in Asia and Africa but also to the developed G-7 countries.
Perhaps because of the preoccu-pation of the Hindujas with the Bofors case and the none-too-congenial conditions of the 1990s, the growth of ALL till the beginning of the third millennium was slow and modest.

On a higher growth path

When the economy attained a certain critical mass around 2002-03 with road development getting priority, with facile funding options available for vehicle acquisitions and with the move towards phasing out inefficient, old vehicles aided by stricter emission norms, the company seems to be ready to enter a high growth trajectory.

The brilliant finance specialist, R.Seshasayee, who has been closely involved in the operations of the company through the last three decades and more, has been driving ALL through a phase of nithyakalyanam. His horizons seem to have expanded since his stewardship of the CII for two years, first as vice president and then as president during 2006-07. The myriad opportunities thrown up to interact with renowned global leaders and, more importantly, with policymakers in Delhi and with leaders of much larger organisations, seem to have impacted favourably on Seshasayee.

As one reporting on ALL for a good 46 years, I have had many occasions to be critical of the staid, conservative approach of this southern engineering giant. There was poor focus on R&D to build upon the excellent, reliable, original British design later enriched by the Japanese Hino. The limited nature of the market also did not provide for much enthusiasm. ALL’s ambitious expansion plan, taking activities to outside Tamil Nadu to Maharashtra and Rajasthan nearly three decades ago, did not seem to take off for quite a few years. One also did not witness many new models and there were few attempts at diversifi-cation even into light commercial vehicles on which competitor Tata Motors made a killing. ALL's strength of a sturdy, reliable product from a strong engineering and manufacturing base created by that brilliant engineer, the previous CEO, R.J.Shahaney, could easily have supported allied activities like production of LCVs and even cars.

Entering the big league…

Perhaps the time for great ideas had not come by then. Today Seshasayee seems to be in a tremendous hurry to catch up for the time lost. He has assembled rich new talent. Today there is a strong focus on R&D - over 400 engineers and scientists work at the modern R&D complex near Chennai. Collaborations with higher institutions of learning like the IIT-M have also been forged. Over the last four years ALL has been introducing a variety of new models for passenger and cargo applications. Just look at a string of new collaborations with several international giants:

ALL has joined hands with Siemens VDO Automotive to design, develop and adopt infotronics products and services for the transportation sector. The joint venture will develop electronic components and software for commercial vehicles and cars.

• Close on the heels of his leading a business delegation to Finland as part of the prime minister's entourage to Finland in October 2006, Seshasayee set up a joint venture with Alteams group, Finland to manufacture high pressure die casting aluminum products. The 50:50 JV has set up a modern plant at Sriperumbudur.
• ALL has joined hands with Nissan Motor Co for the formation of three joint venture companies to develop and manufacture LCV products under both ALL and Nissan brands. Facilities will be set up for the manufacture of complete LCVs, power trains and for technology development.
• In yet another partnership venture, Ashley Transport Services has joined hands with Shriram Transport Finance Company, the largest asset financing NBFC in the country, to operate a unique transport exchange, a brand-neutral freight intermediation service.
• The latest and by far the most impressive of the JVs relates to a tie up with the American giant, John Deere, for the manufacture of construction equipment. The Indian infrastructure sector is receiving high priority and there has been a huge increase in demand for backhoes, loaders… Already ALL has strengths in tippers and dumpers. John Deere is the leader in farm equipment and a vast range of construction equipment. This JV will further expand the range of products offered by the ALL group.

Diversifications will insure against slumps...

These collaborations with global leaders in engineering is bound to help ALL enter the league of higher quality manufacturers with deeper pockets. Significantly, one hears of the company talking today of making products for developed countries, a dream given expression to by IE more than two decades ago. India has tremendous cost advantages compared to developed countries. The most important of these relates to the low wage component. Leveraging these, ALL's competitor Tata Motors has made giant leaps seizing opportunities for growth, both within the country and abroad. This has also been facilitated by prized acquisitions abroad.

Seshasayee is known for his articulation, analytical approach and rich financial acumen. One witnesses the benefits of these in the company cruising on the over drive. This business leader is very well aware of the cyclical nature of the commercial vehicle business. The diversification plans and executing them in quick time are bound to provide a good deal of insurance against the boom and slump cycles and help the company race ahead on the over drive.