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Axis Bank Posts 10% YoY Rise in Q2 Net Profit – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Axis Bank Q2 Results: Net profit rises 10% YoY to ₹5,863 crore

Axis Bank reported a 10% YoY increase in net profit to ₹5,863.56 crore for the quarter ended September 2023 (Q2 FY24). The net interest income (NII) grew 18.8% YoY to ₹12,315 crore during the same period. The gross non-performing assets (GNPA) ratio fell from 1.96% in Q2 FY23 to 1.73% in Q2 FY24. 

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IOCL starts producing ‘reference’ petrol, diesel

Indian Oil Corporation Ltd (IOCL) has begun producing specialised ‘reference’ petrol and diesel that are used for testing automobiles. These fuels, which have higher specifications, are critical for calibrating and testing by automobile manufacturers and testing agencies like the International Centre for Automotive Technology (ICAT) and the Automotive Research Association of India.

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Tech Mahindra Q2 Results: Net profit falls 28% YoY to ₹505 crore

Tech Mahindra reported a 28.1% YoY decline in net profit to ₹505.3 crore for the quarter ended September (Q2 FY24). The IT company’s revenue fell 2.25% YoY to ₹12,863.9 crore during the same period. Earnings before interest & tax (EBIT) stood at ₹457.1 crore, down 48.7% YoY. Tech Mahindra’s board has declared a dividend of ₹12 per share.

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TVS Motor extends ties with ION Mobility

TVS Motor Company is extending its partnership with Singapore-based tech startup ION Mobility to enter Indonesia’s sports scooter segment. The entry will be through Project Dynamo, ION Mobility’s conceptual adaptation of TVS Motor’s premium flagship crossover electric two-wheeler TVS X.

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Network18 Q2 Results: Net loss at ₹61 crore

Network18 Media & Investments Ltd reported a net loss of ₹61 crore for the quarter ended September 2023 (Q2 FY24). The company posted a net loss of ₹34.5 crore in Q2 FY23. Its revenue from operations rose 20.4% YoY to ₹1,865.5 crore in Q2 FY24. EBITDA stood at ₹136 crore, up 17% YoY. Total expenses were up 38.61% YoY to ₹2,206.77 crore.

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GMR Airports, affiliates to buy 11% extra stake in Hyderabad airport

GMR Airports Infrastructure Ltd and its affiliates will buy an additional 11% stake in GMR Hyderabad International Airport Ltd (GHIAL) from Malaysia Airports Holding Berhad’s unit. The deal is likely to be completed within 135 days from the date of execution of the agreement. GMR Airports currently holds a 63% stake in GHIAL. The acquisition will raise its stake to 74%.

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Vi Business launches IoT in collaboration with C-DOT

Vodafone Idea’s enterprise arm Vi Business has launched the Internet of Things (IoT) lab-as-a-service through the telco’s collaboration with the Centre for Development of Telematics (C-DOT). The Vi C-DOT IoT lab is equipped to test 175+ scenarios that include network & functional testing, field testing, application testing, and compatibility testing.

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Jubilant FoodWorks Q2 Results: Net profit falls 26% YoY to ₹97.2 crore

Jubilant FoodWorks reported a 26% YoY decline in net profit to ₹97.2 crore for the quarter ended September (Q2 FY24). The company’s revenue rose 5.2% YoY to ₹1,301.49 crore during the same period. This growth was driven by Domino’s delivery channel sales, which increased by 7.9%. Jubilant FoodWorks opened 60 new outlets across various brands in Q2.

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Hinduja Group eyes $35-40 billion valuation in BFSI business

Hinduja Group is betting big on the Banking, Financial Services, and Insurance (BFSI) sector, targeting to have a value creation of $35-40 billion in the next 5-7 years by adding more verticals to fill up the gaps. The group is also looking at the mobility and energy sectors as the growth driver for the next decade.

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Cabinet approves NPK fertiliser subsidy for 2023-24 rabi season

The Union Cabinet has approved a ₹22,303-crore subsidy for phosphatic and potassic (P&K) fertilisers and the nutrient-based subsidy (NBS) rates for nitrogen, phosphorus and potassium (NPK) fertilisers for the 2023-24 Rabi season amid falling international prices. The subsidy on P&K fertilizers will be based on approved rates to ensure adequate availability and affordable prices for farmers.

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India’s Manufacturing PMI Hits 31-month High in May – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

India’s manufacturing PMI hits 31-month high in May

India’s manufacturing sector expanded significantly, reaching a 31-month high in May. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 58.7 in May, compared to 57.2 in April. The strong performance was driven by robust demand and output and the highest hiring rate in six months.

PMI is a month-on-month calculation, and a value above 50 represents an expansion compared to the previous month.

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Auto sales data for May 2023: Highlights  

Maruti Suzuki India posted a 10% year-on-year (YoY) increase in total wholesale sales to 1.78 lakh units in May 2023. Sales of its mini & compact vehicle segment fell 30% YoY to 12,236 units and 5% YoY to 71,419 units respectively. Exports fell 3% YoY to 26,477 units.

Tata Motors Ltd registered a 6% YoY increase in domestic passenger vehicle sales to 45,878 units in May. The automaker’s commercial vehicle sales declined by 12% YoY to 28,989 units.

Mahindra & Mahindra’s total domestic passenger vehicle segment posted total sales of 32,886 units in May, an increase of 22% YoY. The total sales are up 14% at 61,415 units as compared to 53,726 units in May 2022. 

TVS Motor Company’s total sales stood at 3.3 lakh units in May, up 9% YoY. Meanwhile, Bajaj Auto’s sales rose 29% YoY to 3.55 lakh units.

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Coal India spends 15% higher than statutory requirement on CSR

Coal India Ltd has exceeded the required expenditure on corporate social responsibility (CSR) projects in FY23. They spent Rs 513 crore, which is 15.3% more than the statutory requirement of Rs. 445 crore. Over the past four years, CIL has spent a total of Rs. 2,238 crore on CSR, surpassing the mandated amount of Rs. 1,735 crore. Notable projects include a 5,000-seater library at Ranchi University and the treatment of thalassemia children through bone marrow transplantation.

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Venus Remedies gets marketing authorization from Saudi Arabia for Docetaxel

Venus Remedies Ltd has obtained marketing authorization in Saudi Arabia for Docetaxel, a commonly used chemotherapy drug. This achievement follows the company’s recent GMP certification for its production facilities in Baddi, Himachal Pradesh. It serves as a primary treatment option for breast, prostate, stomach, and non-small cell lung cancers. The global Docetaxel market, valued at USD 102 billion, is projected to reach USD 184 billion by 2030, with a compound annual growth rate (CAGR) of 10.22%.

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Aurum PropTech set to buy Ratan Tata-backed NestAway

Aurum PropTech plans to acquire NestAway Technologies, a managed rental home company backed by Goldman Sachs, Tiger Global, and Ratan Tata. The acquisition will involve a complete buyout of all existing shareholders, including the founders and global institutional investors. The deal is estimated to be worth over $20 million, making it a significant acquisition in the rental platform sector.

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Coal India output grows 9.5% to record 60 MT in May

Coal India Ltd (CIL) achieved a 9.5% YoY increase in coal output with a new monthly production in May 2023 to 60 million tonnes (mt). The combined production of CIL and its subsidiaries in April-May 2023 reached 117.5 mt, an 8.6% growth from the previous year. In May 2023, total coal supplies rose to 63.7 mt, a 4.1% rise from May 2022. The coal off-take for April-May 2023 stood at 126 million tonnes, showing a 6.2% YoY growth.

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GST collections rise 12% to Rs 1.57 lakh crore in May

The Goods and Services Tax (GST) collections in May reached Rs 1.57 lakh crore, showing a 12% YoY growth. The gross GST revenue collected consisted of CGST at Rs 28,411 crore, SGST at Rs 35,828 crore, IGST at Rs 81,363 crore (including Rs 41,772 crore from imports), and cess at Rs 11,489 crore (including Rs 1,057 crore from imports). Last year’s May GST collection was around Rs 1.41 lakh crore.

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GOCL Corporation bags orders worth Rs 257 crore from Coal India

Hinduja Group’s subsidiary GOCL Corporation Ltd has secured orders worth Rs 257.72 crore from Coal India Ltd. The two-year order, spanning from June 2023 to May 2025, involves the supply of detonators, accessories, and cartridge explosives. The current business activities of GOCL include energetics, mining & infrastructure services, and property development.

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Bank of Maharashtra likely to raise up to Rs 1,000 crore via QIP

According to a CNBC report, the Bank of Maharashtra intends to raise funds through a qualified institutional placement (QIP), targeting up to Rs 1,000 crore. The QIP may consist of a base size of Rs 500 crore, which could be extended by an additional Rs 500 crore through a greenshoe option. Institutional investors may be offered a discount of approximately 5% for the QIP. This move aims to attract investment from institutional investors and strengthen the bank’s capital base.

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L&T to create renewable energy infra for world’s largest green hydrogen plant in Saudi Arabia

Larsen and Toubro Ltd (L&T) has been awarded contracts worth $2.779 billion (~Rs 22,900Cr) to create renewable energy infrastructure for the world’s largest green hydrogen plant in Saudi Arabia. L&T’s power transmission and distribution business will be responsible for engineering, procuring, and constructing a 2.2 GWac PV solar plant,a 1.65 GW wind generation balance of plant, and a 400 MWh battery energy storage system.

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SBI’s Net Profit Rises 69% YoY in Q3 – Top Indian Market Updates

Here are some of the major updates that could move the markets on Monday:

SBI Q3 Results: Net profit rises 69% YoY to ₹14,205 crore

State Bank of India (SBI) reported a 68.5% YoY increase in net profit to ₹14,205.34 crore for the quarter ended December (Q3 FY23). Its net interest income (NII) rose 24% YoY to ₹38,068.62 crore during the same period. The bank’s provisions fell 17% YoY to ₹5,761 crore in Q3. The gross non-performing assets (GNPA) ratio fell from 4.5% in Q3 FY22 to  3.17% in Q3 FY23.

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India Cements to refurbish old cement plants with an investment of ₹1,600 crore

The India Cements Ltd has drawn up plans to refurbish its old manufacturing facilities at an estimated outlay of ₹1,500-1,600 crore. The funds to undertake the refurbishment would be met through internal accruals. The refurbishment program would start with Malkapur and Vishnupuram plants in Telangana.

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ITC Q3 Results: Net profit rises 21% YoY to ₹5,031 crore

ITC Limited reported a 21% YoY increase in net profit to ₹5,031 crore for the quarter ended December (Q3 FY23). The revenue from operations grew 2.3% YoY to ₹16,226 crore during the same period. The company’s EBITDA stood at ₹5,183.5 crore in Q3, up 25% YoY. Cigarette sales in the quarter rose nearly 17% YoY to ₹7,288.22 crore. ITC’s board has approved an interim dividend of ₹6 per share. 

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Coal India arm MCL introduces drone technology in coal mines

Coal India’s subsidiary MCL has introduced drone technology in coal mines for environmental monitoring, volume measurement, and photogrammetric mapping of mines for digitalisation of the mining process. The technology has been introduced through the launch of a web-based portal ‘VIHANGAM’. The portal allows an authorised person to access real-time drone video from the mine through a dedicated 40 Mbps internet lease line near the mines.

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Divi’s Labs Q3 Results: Net profit falls 66% YoY to ₹307 crore

Divi’s Laboratories Ltd reported a 66% YoY decline in consolidated net profit to ₹307 crore for the quarter ended December (Q3 FY23). Its revenue from operations fell 31% YoY to ₹1,708 crore during the same period. The pharma company’s EBITDA stood at ₹408 crore in Q3, down 63% YoY. Divi’s Labs shares fell more than 11% today due to poor results.

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Railways plans to upgrade ticketing capacity from 25K to 2.25 lakh per minute: Ashwini Vaishnaw

Railway Minister Ashwini Vaishnaw said the Indian railways will initiate its plan to increase its capacity to issue tickets from 25,000 to nearly 2.25 lakh per minute while attending to inquiries from 40,000 to 40 lakh per minute. The ministry plans to lay new railway tracks for a distance of 7,000 kilometres during the financial year 2023-24. He also announced that “Jan Suvidha” convenience stores will be constructed at 2,000 railway stations across the country.

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Tata Power Q3 Results: Net profit rises 91% YoY to ₹1,052 crore

Tata Power Company Ltd reported a 91% YoY increase in consolidated net profit to ₹1,052 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 30% YoY to ₹14,339 crore during the same period. EBITDA grew 53% YoY to ₹2,818 crore in Q3. Tata Power is one of India’s largest integrated power companies. It has an overall installed/managed capacity of 14,101 MW.

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Max Healthcare lines up ₹400 cr to expand Mohali facility

Max Healthcare Institute will invest around ₹400 crore to expand its Mohali-based hospital. The construction of the new building that will house 170 beds officially commenced today. On completion of the project by the end of Q3 FY24, the hospital bed capacity will go up to 400 beds from the existing 231. The new building will house special specialties like liver transplant, bone marrow transplant, renal transplant, orthopaedics, and neurosciences.

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RBI allows Hinduja Group to raise stake in IndusInd Bank: Report

According to an Economic Times report, the Reserve Bank of India (RBI) has given in-principle and conditional approval to IndusInd International Holdings Ltd, a Hinduja Group entity, to raise its stake in IndusInd Bank to 26%. This will result in the Hinduja Group investing over $1 billion in the bank. Promoter holding in the bank currently stands at 16.51%. To learn more about the Hinduja Group, click here.

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RIL to Develop Multi-Modal Logistics Park in TN – Top Indian Market Updates

silver lake to invest in Reliance

Here are some of the major updates that could move the markets on Monday:

Reliance to develop multi-modal logistics park in Tamil Nadu

Reliance Industries Ltd (RIL) has secured an order to develop India’s first multi-modal logistics park (MMLP) in Chennai from the Ministry of Road, Transport, and Highways. It is estimated to cater to 7.17 million metric tonnes (MMT) of cargo in a time horizon of 45 years. The park will be developed in three phases with an estimated developer investment of ₹783 crores.

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M&M Q2 Results: Net profit rises 44% YoY to ₹2,773 crore

Mahindra & Mahindra Ltd reported a 44% year-on-year (YoY) increase in consolidated net profit to ₹2,773 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 39% YoY to ₹29,870 crore during the same period. The auto major sold a total of 1,74,098 vehicles in the second quarter, up 75% YoY. Tractor sales rose 5% YoY to 92,590 units. 

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Hinduja brothers to end their long family dispute: Report

According to a Bloomberg report, Hinduja Group’s co-chairman Gopichand Hinduja, along with Prakash, Srichand, and Ashok (Hinduja family brothers) have called a truce and decided to end the family dispute. The conflict among the billionaire brothers was because of a pact signed by them in 2014 that said that ‘everything belongs to everyone and nothing belongs to anyone’. To learn more about the Hinduja Group, click here.

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Adani Power Q2 Results: Net profit at ₹696 crore

Adani Power Ltd reported a consolidated net profit of ₹695.53 crore for the quarter ended Sept (Q2 FY23). It posted a net loss of ₹230.6 crore in Q2 FY22. Its revenue from operations rose 36% YoY to ₹7,044 crore in Q2 FY23. EBITDA stood at ₹2,350 crore in Q2, up 51% YoY. The company has an installed thermal power capacity of 13,610 megawatts spread across seven power plants in India.

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Domestic airline industry could report ₹15,000-17,000 crore loss: ICRA

Credit rating agency ICRA reported that India’s domestic airline industry is expected to take a hit in FY23. It projects at least a ₹15,000-17,000 crore loss due to increased aviation fuel costs. Despite domestic passenger traffic increasing by 26% YoY to 114 lakh in October, the numbers are still low compared to the pre-pandemic era.

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HAL Q2 Results: Net profit rises 44% YoY to ₹1,221 crore

Hindustan Aeronautics Ltd (HAL) reported a 44.2% YoY increase in consolidated net profit to ₹1,221.22 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations fell 7.3% YoY to ₹5,144.8 crore during the same period. Total expenses stood at ₹3,775.5 crore in Q2, down 17.1% YoY. HAL’s board declared an interim dividend of ₹10 per share.

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USFDA issues Form-483 with 3 observations to Alkem Lab’s St Louis plant

The US Food & Drug Administration (USFDA) has issued three observations to Alkem Laboratories Ltd’s St Louis-based manufacturing facility. The health regulator conducted a pre-approval inspection at the plant from October 31, 2022, to November 9, 2022. It has observed conditions that may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts.

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Hindalco Q2 Results: Net profit falls 35% YoY to ₹2,205 crore

Hindalco Industries Ltd reported a 35% YoY decline in consolidated net profit to ₹2,205 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 18% YoY to ₹56,176 crore during the same period. Revenue from the upstream aluminium segment rose 11% YoY to ₹8,215 crore, while revenue from the copper business grew 1% YoY to ₹9,658 crore in Q2.

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LIC Q2 Results: Net profit jumps 11-fold to ₹15,952 crore

Life Insurance Corporation of India (LIC) reported an 11-fold YoY jump in net profit to ₹15,952 crore for the quarter ended Sept (Q2 FY23). Its net premium income rose 27% YoY to ₹1.32 lakh crore during the same period. The net income from investments grew 10% YoY to ₹84,104 crore in Q2. LIC’s gross non-performing assets (GNPA) ratio improved to 5.60% in Q2 from 5.84% in Q1.

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An Analysis of Ashok Leyland

The Hinduja Group’s Ashok Leyland has produced some of India’s best buses and trucks over the past seven decades. From school buses to army trucks, the company continues to play a vital role in our country’s development. In this article, learn more about Ashok Leyland Ltd, the second-largest manufacturer of commercial vehicles in India.

Ashok Leyland Ltd – Company Profile

Ashok Leyland Ltd manufactures and sells commercial vehicles (CVs) in India and across the globe. Incorporated in 1948, it is the flagship company of the Hinduja Group. They primarily manufacture distribution trucks, light & small commercial vehicles, tractors, and goods carriers. The company offers city, intercity, school and college, staff, tourist, and airport shuttle buses. Their range of defence vehicles comprises logistics, high mobility, armoured, light tactical, tracked, and simulator vehicles. Ashok Leyland also provides power solutions, including diesel generators, agriculture engines, industrial engines, and marine engines.

Further, the Chennai-based automaker provides manpower supply services, air charter services, and driver training services. They also operate retail stores and LeyKart, an e-commerce store for spare parts. Ashok Leyland serves its customers through an all-India sales and service network.

The company markets its vehicles under the Ecomet, CHEETAH, Oyster Wide, SUNSHINE, Viking Diesel, and STALLION brands. The company’s UK-based subsidiary Switch Mobility manufactures next-generation electric buses as well. 

Factsheet

  • Ashok Leyland is the second-largest manufacturer of commercial vehicles in India (after Tata Motors).
  • It is the fourth largest manufacturer of buses in the world and the 19th largest manufacturer of trucks.
  • The company operates nine manufacturing plants– 7 in India, 1 in the United Arab Emirates, and 1 in the United Kingdom.
  • Ashok Leyland has a presence in 50 countries and is one of the most fully integrated CV manufacturing companies.
  • The automaker launched India’s first electric bus in 2016.

Financial Performance

Unfortunately, Ashok Leyland’s revenues and profits have been on a decline. The company reported an 11.4% year-on-year (YoY) decline in sales revenue to Rs 19,454 crore for the financial year 2020-21. It posted a net loss of Rs 165.23 crore in FY21, compared to a net profit of Rs 336.67 crore in FY20. The challenges in the commercial vehicle market due to the Covid-19 pandemic continue to impact Ashok Leyland’s sales volumes and overall performance. A sharp increase in the prices of raw materials and the global semiconductor shortage forced the CV major to hike prices last year.

The company’s revenue has grown at a CAGR of -1.76% over the past five years, whereas the CV industry average stands at 0.24%. Currently, Ashok Leyland has a 67.17% market share in India’s commercial vehicle segment.

For the quarter ended September (Q2 FY22), Ashok Leyland reported a consolidated net loss of Rs 84 crore. It had posted a net loss of Rs 96 crore in the corresponding quarter last year (Q2 FY21). Revenue rose 44% YoY to Rs 5,562 crore in Q2 FY22. Meanwhile, EBITDA remained flat at Rs 576 crore. The company has significant long-term and short-term debt liabilities in its books. 

Ashok Leyland will report its financial results for the October-December quarter (Q3 FY22) in February. 

Stock Performance

After a significant rally (nearly 5x) from 2014-2016, Ashok Leyland’s shares fell on account of a failed joint venture (JV) with Nissan Motor Company. The partnership turned sour when the Japanese automaker served a termination notice for one of its JVs. This move was reportedly due to a delay in bill payment by Ashok Leyland. Moreover, the two firms were engaged in legal battles due to alleged breach of contracts. The Indian CV manufacturer also failed to pay a royalty of around Rs 200 crore to Nissan. 

The company’s shares touched an all-time high of ~Rs 165 in April 2018. However, it started falling heavily from that point. Sales of medium and heavy-duty CVs began to decline sharply due to poor conditions in the global automobile industry. Rising commodity prices, fuel efficiency and BSVI regulations, affordability issues for customers, and drastic effects of the Covid-19 pandemic ultimately led Ashok Leyland’s shares to crash 75% within two years.

Ashok Leyland’s stock price is currently trading at Rs 135.15, down 11.95% from its 52-week high.

The Way Ahead

Ashok Leyland has a long-standing presence in India’s medium and heavy commercial vehicle (M&HCV) segment. It has a well-diversified distribution and service network across the country. However, the company is scrambling to regain its lost market share due to unfavourable market conditions. Industry experts expect Ashok Leyland to be a key beneficiary of the anticipated upcycle in the Indian CV segment.

The CV major had lined up a capital expenditure (capex) of Rs 750 crore for FY22 to strengthen its product portfolio. Recently, Ashok Leyland announced its entry into the used vehicles business via a partnership with Shriram Automall. The companies will launch a physical and digital platform for facilitating the exchange, disposal, and purchase of old CVs.  

The company has lined up its electric vehicle (EV) roadmap and also set a target of becoming one of the top 10 commercial vehicle brands in the world. The company’s EV push will be led by its UK-based subsidiary, Switch Mobility. The EV arm plans to launch its first electric light commercial vehicle (e-LCV) in India soon. Ashok Leyland also plans to invest $150-200 million in the EV space in the next few years. Based on estimates, the global electric bus market is likely to reach $70 billion by 2030. Switch Mobility will be well-positioned to address this market. Let us look forward to seeing how the automaker executes its strategic plans.

What are your views on Ashok Leyland? Are you invested in it? Let us know in the comments section of the marketfeed app.

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Editorial

The Hinduja Group: Origin, Businesses, and Expansion

hinduja group

The Hinduja Group is one of the largest diversified business groups in the world. Since its inception more than 107 years ago, the group has expanded gradually to business segments such as automotive, information technology, media & entertainment, oil and specialty chemicals, banking and finance, power generation, real estate, healthcare, and many more. The Hinduja Group has established its direct presence in 38 countries and conducts operations in more than 100 nations around the world.  

Let us take a closer look into the history of the Hinduja Group and learn more about their businesses. 

Brief History

The Hinduja Group was established by Parmanand Deepchand Hinduja in 1914. He hailed from a Sindhi family based in India. Initially, he began a small business in Sindh (now in Pakistan). One of the major milestones in his career was setting up an international trade centre in Iran in 1919. Merchant banking and trade were the twin pillars of the group’s business. After Parmanand Hinduja’s demise in 1971, his sons took over the family legacy. They formed a financial institution known as Hinduja Bank in Switzerland around the same period. The Hinduja Group also acquired the world-renowned ‘Gulf’ brand and later established Gulf Oil Corporation Limited. 

The Islamic Revolution in Iran in 1979 forced the group to move its headquarters to London, United Kingdom. Around 8 years later, they acquired Land Rover Leyland International Holdings’ overseas stake in Ashok Leyland. They focused on setting up production units and showrooms across India, Sri Lanka, and the United Arab Emirates. The commercial vehicle manufacturer is now the flagship company of Hinduja Group. The automaker even launched India’s first CNG-powered bus in 1997.

The year 1994 marked the group’s entry into the Indian banking space. They established IndusInd Bank. It was one of the first private sector banks that helped in accelerating the process of reforms in post-liberalised India. Hinduja Group also set up IndusInd Media and Communications Ltd in 1995.

Hinduja Global Solutions was incorporated in 2000. This is essentially the business process outsourcing (BPO) subsidiary of the group, which is headquartered in Bangalore. In 2007, Ashok Leyland and Japan-based Nissan Motor Corp entered into a joint venture to build light-duty trucks. The group also owns Optare plc, which is a leading manufacturer of electric buses in the UK.

Major Company Segments

  1. Ashok Leyland Limited– It is the second-largest manufacturer of commercial vehicles in India (after Tata Motors). The company is the fourth-largest manufacturer of buses in the world. It also offers power solutions for electric power generation, agricultural harvester combines, and earth-moving & construction equipment. They have set up around 10 manufacturing facilities across India, UAE, and UK.
  1. IndusInd Bank– The company offers banking and para-banking services. Para-banking may include insurance services, portfolio management services, pension fund management, mutual fund business, etc. The lender has established nearly 2,000 regional branches across India.
  1. Hinduja Global Solutions Limited– It provides services related to business process management (BPM). The company’s primary activities include information technology (IT), IT-enabled services (ITES), and business process outsourcing (BPO). Through its subsidiaries, Hinduja Global Solutions also offers contact center solutions and back-office transaction processing services across North America, Europe, Asia, and the Middle East. It caters to the healthcare, telecommunications, media, insurance, retail, and consumer electronics sectors.
  1. Gulf Oil Corporation Limited– The company offers energetics, mining, and infrastructure development services. It manufactures and sells explosives, detonators, explosive bonded metal clads, and special devices for defence and space applications. GOCL also undertakes large-scale mining services in coal, iron ore, limestone, and bauxite mines.

The Hinduja Brothers

The Hinduja Group is currently headed by Srichand P Hinduja, the eldest son of Parmanand Deepchand Hinduja. Along with his brothers— Gopichand P Hinduja, Prakash P Hinduja, and Ashok P Hinduja— S.P Hinduja has led the company to great heights. They have collectively strategized and executed the diversification and expansion of the group as a whole. The Hinduja Brothers have lived up to their father’s vision and commitment towards building one of the most reputed business empires in the world.

Interestingly, the group trades in practically all products and commodities except tobacco, meat, and alcohol. On the other hand, they have focused on philanthropic activities, and have built hospitals, wellness centres, schools, and colleges in India and abroad. It has provided direct employment opportunities to more than 150,000 people. For years, the Hinduja Group has also promoted and developed the use of clean renewable energy sources.

The group had posted revenues of $50 billion in 2018. According to Forbes, the Hinduja brothers were the fifth-richest businessmen from India in 2020. They have a net worth of $14.8 billion as of March 2021.

Recent Developments

The Hinduja brothers are now involved in a legal dispute in the UK over their family fortune. A letter signed in 2014 and a related document had stated that the brothers appoint each other as their executors and that assets held in any one brother’s name belong to all four. The dispute between the Hinduja family came to light in a ruling delivered in June 2020 by a London judge, who said that the three brothers- Gopichand, Prakash, and Ashok- tried to use the letter to take control of Hinduja Bank. The bank was in Srichand’s sole name at the time. However, S.P Hinduja and his daughter Vinoo wanted the letter to be dismissed or to have ‘no legal effect’. Despite this issue, the brothers have reaffirmed that the court proceedings will not affect their businesses or the values which they stand for.

The third and fourth generations of the Hinduja family are all set to carry forward the rich heritage of the group in the years to come. Let us look forward to seeing how they execute future plans and expand further.