The Hindu : Business : Ashley ropes in Shriram to offer a range of services

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Tuesday, Aug 14, 2007
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Business

Ashley ropes in Shriram to offer a range of services

Corporate Reporter

To beef up Transport Exchange network to 100 locations

To provide value-added services
STFC to have 40 per cent stake in equity capital

— PHOTO: BIJOY GHOSH

SCALING UP OPERATIONS: R. Seshasayee (right), Managing Director, Ashok Leyland, and Chairman, Ashley Transport Services; R. Thyagarajan (centre), Chairman, Shriram Group of Companies, and R. Sridhar, Managing Director, Shriram Transport Finance, at a press conference in Chennai on Monday.

CHENNAI: Ashley Transport Services, promoted by Ashok Leyland and its group companies, has roped in Shriram Transport Finance Company (STFC) as a strategic partner to provide a comprehensive suite of products and services to truck operators.

Addressing presspersons here on Monday, R. Seshasayee, Managing Director, Ashok Leyland, and Chairman of Ashley Transport Services, said Ashley was hitherto operating a unique Transport Exchange, a brand-neutral freight intermediation service. The present tie-up with STFC would bring in a variety of essential and value-added services to truck operators, Mr. Seshasayee said.

K. Rajagopal, Chief Executive, Transport Exchange, said freight intermediation services in India had been dominated by small, localised and unorganised players and truck owners had been saddled with issues of poor return load availability, lack of transparency and revenue leakages affecting their viability. Transport Exchange from Ashley Transport Services will address these issues.

Mr. Seshasayee indicated a planned scale up of Transport Exchange and related services from Ashley Transport Services with the network growing to over 100 locations in the next two years from 29 now and an enlarged range of offerings that would include the most critical solutions and micro financing products such as challan funding to truck operators.

R. Thyagarajan, Chairman, Shriram Group of companies, said “joining hands with Ashok Leyland in this venture reflects the customer-centric approach of Ashok Leyland and the Shriram group to meet the business requirements of the transport community in every conceivable manner”. The venture will operate in all segments which will help the truck operators and take care of their funding requirements, he said.

According to R. Sridhar, Managing Director, STFC, and Director of Ashley, the equity capital of Ashley Transport Services will be Rs. 10 crore with Ashok Leyland and group companies holding 60 per cent and STFC 40 per cent.

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