Ashok Leyland inducts Shriram Transport Finance as strategic partner in Ashley Transport Services

Ashok Leyland Ltd on August 13 2007 has announced their strategic partnership in Ashley Transport Services Limited.

Hitherto wholly owned by Ashok Leyland and its group Companies, Ashley Transport Services has been successfully operating the unique Transport Exchange, a brand-neutral freight intermediation service. Transport Exchange is a part of Ashok Leyland's initiatives to bring in a variety of essential and value- added services to the trucking community. It facilitates truck placement for load providers, arranges load for tuck operators and ensures timely settlement.

Speaking on the occasion, Mr. R Seshasayee, Managing Director, Ashok Leyland and Chairman of Ashley Transport Services said, "With over 30 lakh commercial vehicles engaged in goods transportation, the sheer size of the industry offers significant opportunities for organized players and plenty of avenues to improve the viability of truck owners. This strategic tie-up is another step in actualizing Ashok Leyland's vision of providing a comprehensive suite of products and services in the transport value chain. Our future plans for Ashley Transport Services include an expansion of its operations and the introduction of new financial services that transporters value. I am happy that in Shriram Transport Finance Company, we have the ideal partner with the credentials, expertise and experience to offer a variety of financing products to the truck operators and the requisite systems and processes to power the growth of Ashley Transport Services."

The equity capital of Ashley Transport Services is held by Ashok Leyland and group at 60% and Shriram Transport Finance Company at 40%.

Mr. Seshasayee indicated a planned scale up of Transport Exchange and related services from Ashley Transport Services with network growing to over 100 locations in the next 2 years and an enlarged range of offerings that would include the most critical solutions and micro financing products like challan funding to truck operators. All these offerings, he stated, would ultimately help in improving transporter viability.

Source : Equity Bulls

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