Ashok Leyland Limited and Atul Auto Limited

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PGDM – 1st year (E -Business) / B

Year: 2017-19   /   Sem: II

Subject: Financial Services

Topic: Automobile Sector

(Ashok Leyland Limited and Atul Auto limited)

Submitted to: - Prof. Chirag Seth

Group No 1

Prajwal Shetty (66)

Nikhil Godbole (67)

Mamta Shetty (80)

Krutika Shetty (86)

Pratik Sawant (113)

Amey Agaskar (114)

AUTO INDUSTRY GROWTH PROSPECTS

Improving economic growth, robust demand from rural and semi-urban markets and lower cost of ownership have driven sales in 2016, bringing in a much-needed recovery for the industry, after growth slumped in 2015," the report said.

Sales will also be helped by higher replacement demand on account of the expected implementation of new emission norms and the impact of deferred purchases as a result of demonetization, the report adds. But the report is quick to note that "the recovery will take at least two to three months more as consumers are still hit by the note ban. Consequently, although the mid to long term prospects look positive, given the impact of demonetization and the uncertainty regarding the GST the industry may not sustain the growth rates achieved in 2016."

The positive sentiment is driven primarily by the rural and semi-urban demand for two-wheelers and cars, driven on the back of good monsoons. Another boost up will be the 7th pay commission that will infuse around Rs 1.02 trillion of disposable income of over 1 crore employees. Another reason is the aggressive play by the cab aggregators who are expanding their operations extensively.

On commercial vehicles sales which recovered in 2015 with a growth of 6.3 per cent and 7.7 per cent in 2016, demand will be driven by replacement demand, construction and mining, increasing freight movement and moderation in fuel prices and firm freight rates, while increased government focus on infra sector will drive demand for specialized heavy goods vehicles such as construction trucks, mining tippers etc.

ATUL AUTO

Overview of Atul Auto

Atul Auto Limited is a leading three-wheeler manufacturing company in Rajkot, Gujarat, India. The company's origins lie in the 1970s, when Jagjivanbhai Chandra sought to modify motorcycles to make transport to meet the needs of rural areas, and adapted the engines from golf carts scrapped by the Maharaja of Jamnagar, resulting in his first chhakada vehicles. The company incorporated in 1986, and production begin in 1992.

The Company is the leading manufacturers of 3–Wheeled Commercial Vehicles in the state of Gujarat, presently engaged in the manufacture of Three Wheelers like 6–seater Auto Rickshaws, Pick–Up Vans and Chassis of Passenger Vehicles. These vehicles are marketed under the brand name of KHUSHBU, which is well established and very popular

The company has already obtained CMVR and Roadworthiness Certificates for the existing range of products viz. Chassis for goods carriage/ 6–passenger Auto Rickshaw with steering wheel and Pick Up.

In 2011 the company formed a JV with Rudolf GmbH (Germany) 2012–2013 marked many achievements for the company– Establishment of tissue cultured date palm production facility in Jodhpur for the first time in India– Commissioning of the world biggest p–Cresol facility in Ankleshwar– Establishment of 22,000 square feet R&D facility to grow APIs and API Inters business– Upgradation of environment facilities at Valsad Complex (in 3 sites)

2011 Atul Auto – A new tie up with Atul Autos Bangladesh Ltd, Uttara, Bangladesh

2012 CNBC Award to Atul Auto Ltd. Company has entered into a Long Term Supply Agreement with Greaves Cotton Limited for supply of diesel engines for Company's three wheelers.

In the last five years, the production and turnover has grown by two folds.  The company has achieved turnover of Rs. 472.20 Crores for FY 2016-17 Atul Auto Limited is pronounced as a leading manufacturer of three-wheeled commercial vehicles in Gujarat.

PRODUCTS OF THE COMPANY:

1. Goods Carriers

1. Pick up Van Standard
2. Delivery Van
3. Pickup Van Highdeck
4. Pickup Van Standard CNG
5. Delivery Van CNG
6. Pickup Van Highdeck CNG
7. Gem Cargo / Cargo XL

1. Passenger Carriers

1. 3+1 passengers Carriers
2. 4+1 passengers Carriers
3. 6+1 passengers Carriers
4. CNG passengers
5. LPG passengers
6. Real Engine passengers
7. GEM Paxx

1. Special Purpose Vehicle

1. Chicken Carrier
2. Tipper
3. Water Tank Carrier
4. Soft Drink Carrier
5. Mobile Shop
6. Hopper
7. Bio Hazard
8. Vegetable Vending

OTHER GROUP OF THE COMPANY

1. Atul Motors Pvt. Ltd. –– Marketing of Maruti Range of Cars & 4–Wheelers
2. Atul Auto Agencies –– Distributors of Honda 2–Wheelers
3. Atul Automotives –– Distributors of Mahindra LCVs
4. Atul Petroleums –– Dealing in Petroleum Fuels & Products
5. Atul Tele Services –– Mobile and Tele Communication Services
6. Atul Rachna Pvt. Ltd. –– Real Estate Developers & Builders
7. Atul Auto Batteries Pvt. Ltd. –– Batery Manufacturer
8. Khushbu Auto Finance Ltd.  ––Auto Finance Company
9. Khushbu Auto Pvt. Ltd. –– Centralised Marketing Organisation
10. New Chandra Motor Cycle House ––Distributors of LML Vespa Scooter, Royal Enfield Motor Cycles, etc.

Other Competitors

ATUL AUTO SHARE HOLDING PATTERN

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