Ashok Leyland ULE unit steps on the gas

T he new bus body facility at Ashok Leyland’s Alwar plant in Rajasthan is buzzing with frenetic activity as the commercial vehicle manufacturer races to complete production of Ultra Low Entry (ULE) buses ordered by the Delhi Transport Corporation (DTC). As per the mutually agreed schedule, the supplies against the total order of 875 buses (525 non-air-conditioned and 350 AC) will be completed in February 2010. According to Rajive Saharia, executive director – marketing, Ashok Leyland, the company will be supplying 50 ULE buses to DTC soon as part of DTC’s Rs 1,190-crore contract. “The vehicles are ready and prototypes have already been handed over to DTC. Once the registration process is done, the buses will be on the road,” he said. The DTC contract includes Rs 710 crore as maintenance for 12 years. Drivers will be trained at the company’s state-of-the-art Driver Training Institute, at Burari, near New Delhi, which has been set up jointly with the Government of Delhi. To meet the production target, the company is now ramping up production in Alwar by 50 percent from 200 units a month to 300 units a month. Besides the DTC order, the Alwar facility will also produce 200 ULE buses ordered by the State Transport Undertakings of Rajasthan, Maharashtra and Andhra Pradesh under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM). The JnNURM scheme, an initiative by the Central Government to promote public transport and to reduce traffic congestion and pollution in metro cities, has come as a shot in the arm for a number of bus makers including Ashok Leyland. The company has also revealed plans to begin producing ULE buses at its Irizar-TVS facility near Tiruchirapalli, which is a joint venture between Ashok Leyland, TVS & Sons Ltd and Irizar, the Spanish bus body builder. This unit, which was essentially set up to meet the growing demand for luxury coaches in the country, will now roll out ULE buses to tackle burgeoning demand. Talking about the quality of the buses produced at the Alwar facility, Saharia says, “The buses we are building for DTC are globally benchmarked, certainly unique for the Indian roads and DTC can be proud of ushering in a world-class product for urban transportation in India. The development of the ULE bus has been a joint effort and given the stringent specifications and unprecedented complexity, a steep learning curve for both of us." Designed for comfortable transport The ULE bus, which has a floor height of 390 millimetres, has a step-less entry. This 12-metre-long bus has an integral all-steel body, with 35 seats in 2x2 configuration. It is powered by a 230hp turbo-charged, inter-cooled engine and is equipped with an automatic transmission. The use of multiplex wiring is a unique feature influenced by considerable electronics employed in the bus. Safety, passenger ride comfort and convenience and easy driveability have been key considerations in the design and manufacture of these buses, according to the company official. The bus is equipped with electro-pneumatically controlled doors with lock sensors to enable easy operation by the driver; the doors will not open when the bus is in motion. Anti-skid vinyl flooring with silicon impregnation, conveniently located grab bars, sleeved stanchions and a stop request buzzer are some of the other safety features. The bus is fitted with a speed limiting device and an efficient braking system. Apart from the low floor and wide doors that afford easy entry and exit, passenger comfort and convenience are further addressed through air suspension for jerk-free rides, complemented by modern, comfortable roto-moulded seats, air-conditioning and electronic destination boards. Equipped with laptop connections and a music system, the bus is also disabled-friendly. Hi-tech Alwar plant The new bus-manufacturing facility in Alwar is spread across 20,000 square metres. This unit has also spearheaded the induction of CNG technology in Delhi buses, with a supply of over 3,500 CNG bus chassis till date. The bus building facility is equipped with ultra-modern machinery that has been globally benchmarked and is the best in class. These include the cubic framing fixture, hydraulic automated panelling, conveyors for automation, body lifting mechanisms, paint booths and a shower testing facility. The stretch panelling process is one-of-its-kind in India where the steel and aluminium panels in the bus are stretched to their maximum elongation limits to ensure a smooth, dent- and wrinkle-free surface. Gunning for sales Meanwhile, in a related development, Ashok Leyland signed a Memorandum of Understanding with Magma Fincorp Ltd (MFL) to provide financing to CV buyers. Rajive Saharia and Ravi Todi, joint managing director for MFL, signed the MoU in Chennai paving the way for enhanced sales through improved financing coverage in the eastern and northern parts of India. MFL has a strong distribution and service network of 150 offices across the country with a strong focus on semi-urban and rural areas. Elaborating on the alliance, Saharia said: “In a market dictated by quality, transparency and customer service, this strategic partnership will go a long way in aiding the sales process. It will help leverage the areas of strength of the two partners and significantly increase the 'feet on street' to promote their respective product offerings. It will definitely lead to an increase in the sales and financing quantum of both entities.” “Through this association with Ashok Leyland, we can both provide superior financing options for their customers and also have the opportunity to broadbase the commercial vehicle assets financed by us to give us a wider pan-India presence," Todi added. Ashok Leyland had also entered into an agreement with Vijaya Bank, by which the firm will fund the commercial vehicle manufacturer’s end-customers. Vijaya Bank, already active in the auto and SME space, now becomes a preferred financier for commercial vehicles of Ashok Leyland, which already has similar agreements with a number of other banks. Although the CV industry is yet to recover from the downturn, Ashok Leyland has posted good figures. In the five-month April to August 2009 period, it had sold 4784 units compared to 4819 units sold at the same time the previous year. Apart from the 875-bus order received from DTC, under JnNURM, the company has received 5,185 bus orders out of 9,966 vehicle orders released, constituting a 52 percent share. Rapid implementation of the government project can only spell good news for the CV manufacturer.