CII 2017 Energy Award. Kwh /vehicle. Kwh per HECU - Hosur, Unit1

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1 /3/ COMPANY PROFILE Buses Trucks Defense Vehicles CII th National Award for Excellence in Energy Management Products Light Commercial Vehicles Power Solution ASHOK LEYLAND, UNIT, SIPCOT INDUSTRIAL AREA HOSUR 3 (TN) Ashokleyland Seven Manufacturing Plants in India Ashokleyland, Hosur unit Resources Hosur- Total Area (Acres). Plant and Machinery Permitted Maximum Demand Manpower (Associates +Exe) 3 ~ Rs. Cr kva Process Trees (no's) Energy Management Policy Specific Energy Consumption (SEC) Benchmarking AL Energy Policy Hosur, Unit - Key Mile stone 3 Energy Improvement Kwh per HECU - Hosur, Unit National Bench marking - Kwh per Eq Vehicle National Bench Marking % Power cost to Mfg cost Kwh /vehicle Setting targets for energy reduction and achieving them through Energy Management and regular monitoring. FY :.% reduction FY : Target reduction % Hosur, Unit Ennore Panthnagar Internal Bench Marking - Kwh per HECU Ashokleyland Nearest Competitor Energy and Cost Bench marking is difficult Since :

2 /3/ Energy Management Organization Structure Energy awareness at the Gemba Level - Deep rooted in the AL culture.. Continuous improvement through Power Cost Management initiatives Energy Management Implementation methodology Review & Monitoring from Plant Head till Line executive. Self-Calibration System compliances ERP IT Based GEMBA Mpower Programme Monitoring & Reporting- SAP Continual improvement Improvement activities Awareness thro campaigns Promoting involvement Horizontal deployment Best practices Waste elimination Cloud hosted infrastructure to all manufacturing units can be accessed by any internet enabled devices. Effective utilization of internal expertise across all Units. Shopwise wise: Reviewed daily Current Power consumption pattern Daily Energy Management : Review of Reports Plant wise: Reviewed daily Continuous improvements through Small group activity / Cross Functional team. Projects identified & registration is done in the ERP portal. The ideas generated through brainstorming is evaluated and approved by TQM and Process Leader. The idea is then implemented and tracked for consistency & Successful project will be awarded. Team work & Motivation Shift wise / Component wise (Daily) - - Best among the best projects selected from Plants and Corporate functions Best among the best projects selected from all Plants. Held at BANGALORE Held at DUBAI between -th Sep Hosur team won One Gold award in support Service category, One Silver award in support services category and Two Merit awards Hosur won One Bronze award in Manufacturing support services category & One Super Merit awards and Four Merit awards - Best among the best projects selected from Plants and Corporate functions Held at AGRA between -th Oct Hosur won One Silver award in support Service category, One Bronze award in Manufacturing category Three Super Merit awards and Two Merit awards Plant-wise, Aggregate-wise reports circulated to Line Executives & Section Heads Weekly Power cost discussed weekly with the respective Sponsors and Process owners. Monthly Gap Analysis reviewed by Plant head on monthly basis. Inter-unit comparison by AL Manufacturing Head in Plant Performance Meets

3 /3/ Significant Energy saving Projects FY- Significant Energy saving Projects FY- Energy regeneration during Engine testing. Saving Month. Replacement of Power hoist instead of air hoist. Saving Month.. Energy cost saving through utilization of demand/resource management & power mix 3projects. Saving Month 3.. Pressure regulating valve for compressor running optimization. Saving Month... Engine testing cycle modification to reduce cycle time & HSD consumption. Elimination of idle running by circuit modification in SPM machines.. 3. Energy regeneration during Engine testing... introduction of VFD and Derating of Motors in machines Program modification nos CNC machines. Restriction of main air to shop 3 and using portable compressor avoiding wastage of cfm/hour..... introduction of VFD and Derating of Motors in machines. rescheduling of Production plan and optimized usage of Captive Power & TNEB Demand boiler steam for canteen plate washing. Idle running elimination through set up time reduction Elimination of idle running by circuit modification in 3 machines. incorporation of Mingling valve in airline for compressor running optimization air circuit modification in areas... 3 introduction LED/CFL/T lamps in 3areas/nos... introduction LED/CFL/T lamps in areas/3nos.... Kwh Cost reduction through introduction of alternate power source.... Significant Energy saving Projects FY- # Innovative Project Energy regeneration during Engine testing. rough Block weight reduction Saving Month Rainwater for Process.. introduction of VFD and Derating of Motors Heat recovery in screw compressor Turbo Ventilator for shop ventilation Daylight improvement in Machine shops introduction LED/CFL/T lamps in shop floor/office/street light Derating of Man cooler to air circulator Introduction of Heat pumps instead of Electrical heaters in High intensive washing M/Cs Saving Month Elimination of Stress Relieving Process in Cylinder Head by introduction of multi-stage milling Before : 3 Rocker Face Rough Milling Combustion Face Rough Milling Rocker Face Finish Milling Combustion Face Finish Milling Valve Guide Valve Seat Parent Bore Injector mouth profile forming Valve Guide Valve Seat Insitu Bore Combustion Face Dowel Stress Relieving in Muffle Furnace Power consumed 3 Kwh / Cy head After: 3 Rocker Face Rough Milling Combustion Face Rough Milling Combustion Face Semi finish Milling Combustion Face Finish Milling Rocker Face Finish Milling Stress Relieving in Muffle Furnace Combustion Face Finish Milling & Valve Guide Valve Seat Parent Bore Injector mouth profile forming, Valve Guide valve seat insitu bore & Combustion dowel Power consumed Kwh / Cy head By modifying the milling process and introducing semi-finish milling, furnace operation is eliminated. Number of head / year Reduction Kwh / Cy head Savings in Kwh / year Cost Saving Rs. In lakhs, 3.33 lakhs 3.

4 /3/ # Innovative Project #3 Innovative Project Introduction of General purpose CNC route machining using guide pad tooling and multi spindle Honing SPM by replacing conventional SPM route machining. Head face Dowel Head finish Milling Finish Boring Finish Boring Finish Boring Line Bore Honing Line Bore Honing Line Bore Honing Power consumed. units Per Block Head Face Dowel & Finish Milling Line Bore Finish Boring Multistage Honing Power consumed. units Per Block By introducing multi-spindle machines and combining processes in a single machine, energy per component reduced. Number of block / year Reduction in Kwh / Cy block Total Units saved / year in lakhs Cost Saving Rs. In Lakhs, Introduction of Tempering in Induction Hardening SPM and eliminated conventional tempering furnace Induction Hardening Tempering Furnace Straightening Operation Power consumed. units Per Camshaft Induction Hardening Tempering Tempering Furnace Straightening Operation Power consumed. units Per Camshaft By combining tempering operation along with hardening process, Eliminated tempering furnace. Number of CS / year Reduction in Kwh per CS Savings / year Kwh in lakhs Cost Saving Rs. in lakhs, # Innovative Project # Innovative Project HEAT PUMP for Power Intensive washing machines: Waste HEAT RECOVERY from Rotary Screw Compressor Electric heaters replaced by HEAT PUMP in four washing machines & realized % reduction in fluid heating by maintain same tempt & Quality parameters Heat Exchanger Retrofit unit fixed with existing air Compressor + piping Recovered heat utilized in two washing machines at P Engine Assembly Number / year 3, No of Machines Heating load in KW x = Fluid Tempt in Deg C Kwh per Engine 3.3 Reduction in Kwh NIL No of machine Heat pump load in KW X = Fluid Tempt in Deg C Kwh per Engine. Reduction in Kwh 3.33 No of Engines / year 3 Reduction / year Kwh.3 L Savings Rs in lakhs.3 Rs in lakhs 3. Payback in years.3 Washing Tempt : Deg C Electrical heaters : KW Units / per Aggregate :. Washing Tempt : Deg C Pump : KW Units / per Aggregate :. Reduction Units saved / year Cost Savings. Kwh / set Kwh. in L Rs.3 L / Yr. years

5 /3/ # Innovative Project # Innovative Project Cylinder Block Casting modifications to optimize casting weight and machining allowance in rough machining Rough casting weight optimized 3% by reducing the stock in specified areas. SMED Set-up change time reduction in Cy block machining to minimize idle running Idle running of auxiliary equipment minimized during setup change through single minute die change concept (SMED). Power consumption in rough machining (3 m/cs) per Cy Block :. Kwh Power consumption in rough machining (3 m/cs) per Cy block :. Kwh Number of block / year Reduction Kwh / Cy block Savings Kwh in lakhs / Yr Savings Rs in lakhs,..3. Guide for B-platform Guide for A-platform Setup change time in m/cs : 3 Min Consumption : Kwh Position for B-platform knob Movable guide Fixed guide Position for A- platform Setup change time in m/cs : Min Consumption : Kwh No of setup change / Year Reduction in Kwh / Change Kwh savings / year Savings Rs in lakhs,. # Innovative Project # Innovative Project Pressure regulating valve Energy saving by interconnecting two production lines through ring main distribution High Pressure air converted to low pressure air through pressure regulating valve & unloading of compressors hours minimized. Two Engine Assembly & Machine interconnected with ring main & avoided running of dedicated Air compressor No of working days Reduction in Kwh / WD Savings in Kwh / year in lakhs Savings Rs in lakhs / year 3.. Power consumption / day = 3 units Power consumption / day = units No of Working days Reduction in Kwh / WD Savings in Kwh / year Savings per year 3 3. lakh Rs.3 L

6 /3/ # Innovative Project Reduction of SEC Trend Elimination of Painting in Engine Assembly by introduction of pre-painted casting without Heat treatment Casting Red Oxide Painting Machining Operation Painting Engine Assembly Casting Enamel Painting Machining Operation Painting Engine Assembly In line with change in heat treatment process, Painting operation Eliminated in Engine Assembly No of Engines / Year Reduction in Kwh / Engine,. H Engine: SEC kwh/hecu. Reduction / year Lean manufacturing.3 Kwh in lakhs Synergy between Production plan & Energy Management Power consumption by paint booth Painting Eliminated Cost Saving Rs. :. Kwh / Engine. Total Employee involvement In lakhs / Yr FY3- FY- FY- FY- Energy cross audits by other plants (Horizontal deployment) 3 3 FY3- FY- FY- FY- Fixed Power: kwh/month in lacs.. % The increase in FY - is due to MS renovation, decrease in volume, increase in Engine R&D activity (BS) & introduction of Spare parts warehouse. P: Engine SEC kwh/hecu More focus on renovation of process manufacturing Introduction of Energy Efficient Products.% 3 FY3- FY- FY- FY- Energy Hosur (Approach adopted) Reduction of SEC H Engine & P Engine Specific Energy Reduction Trend H Engine Production Lines H-Block SEC kwh/hecu H-Head SEC kwh/hecu H-Engine Assy SEC kwh/hecu 3 3% % % 3 Diesel Litre / HECU 3% Good Cutting & Hyd Fluids Litre / HECU Water KL / HECU % FY- FY- FY- FY- FY- FY- FY- FY- FY % Good P Engine Production Lines P-Block SEC kwh/hecu P-Head SEC kwh/hecu P-Engine Assy SEC kwh/hecu % % % Compressed Air Unit / HECU 3 Increased no of Shifts & FY- FY- FY- FY- FY- FY- FY- FY- FY- Lines

7 /3/ Renewable Energy Sources Renewable Energy Sources Roof Top Solar : Shift towards clean, reliable, affordable Electricity Sh Sh Windmill Energy Utilization Units in Lacs 3 FY3- FY- FY- FY- Overall Windmill energy generation in Tamil Nadu reduced in FY- due to evacuation issues Windmill Energy - % contribution to Overall Power Hosur Shop & ( MW) FY- FY- Predominant Source is from Green Energy Key Differentiation factors:., % st 3., %.3, 3% Major Solar Renewable.3, %., Power project. %., 3%., % 3., % Windmill utilization is up to % of total consumption ZERO CAPEX by AL. Existing metallic roof tops Expecting % Solar Energy contribution in FY used to generate own power TNEB WM GCP DG TNEB WM GCP DG within our premises. Renewable Energy Sources GHG Inventorization Turbo Ventilators in M/C shop numbers installed Natural light through transparent sheets in M/C shop Common Pooling arrangement for Associates enabled the reduction of number of people coming in bikes No.of Buses inducted : No of two wheelers reduced : 3 Carbon emission reduction: MT Bio Diesel for Canteen Boiler HSD procurement minimized Cost Saving : Rs. millions per year GHG Emissions Reduction : % Carbon Neutral Initiatives % EMISSION INTENSITY REDUCTION Carbon foot print Base Line 3- FY- FY- FY Rainwater Harvesting - KL Utilized for Process Shop E Assy KL Solar Water Heater for canteen dish washing Diesel Consumption reduction in Forklift by introducing a Tractor-Trailer arrangement which can hold up to engines & by bringing stores and dispatch areas near to the shop floor P M/C shop SH- M/C shop SH- M/C shop R&D Block Before After Consumption in KL..... Fork Lift Diesel Consumption...% - -

8 /3/ Carbon Foot Print Go Green Initiative ASHOK LEYLAND - CARBON CREDITS / DEBITS Category Carbon debits: mtcoe mtcoe mtcoe mtcoe Scope Foot print -3- base year 3 Scope Foot print (Electricity purchased) Scope & Total emissions Carbon Credits: Wind Power Plantation KWH reduced through EC projects Total credits earned 3 3 Net credit / debit wrt Scope Net credit / debit wrt Scope & Scope Remarks wrt Scope C -ve C -ve C -ve C - ve Remarks wrt Scope & Scope C -ve C +ve C +ve C - ve Increased green coverage from % to 3%. Wind mill Generation increased up to % Carbon negative in terms of Scope & Scope Implementation of Dr. Miyawaki Afforestation Biodiversity Enhancement Rainwater Perculation Well Carbon foot print negative (scope & ) Water consumption reduced by % Food wastage reduced by % Green coverage increased from 3. to.3 Sq.mt Celebration of, Earth day celebration World Environment day Energy conservation day World water day 3 Utilisation of waste & reuse Waste Recovery trend Effluent Treatment Plant : Treated water to RO, KLD Per day for Industrial use. In M tonne Paint Sludge Reuse in kl 3 ETP Water for Garden,,33, Re use in KL Canteen/Drinking RO Reject Reuse,,, Sewage treatment Plant : Treated water to Garden KLD Per day. Reuse in kl Coolant / Cutting Oil Recovery... In MT Oil Soaked Waste Re use in KL 3 Industrial RO Reject Reuse,,3, Waste Coolant Recovery : Recovery, Recycle & Reuse of 3 KL of coolant per month. Canteen Food wastage to Biogas Food Waste Crusher Digester Cooking 3 3

9 /3/ Horizontal Deployment Significant Energy saving projects planned in FY Regeneration of Energy during Engine testing Implemented at PNR & Technical Center (nine test beds completed & six in pipe line).. MW Roof top solar power plant Horizontally deployed at other four plants & Hosur Management development center. Heat pumps for power intensive washing machines implemented at other three plants (six no completed & nine no in pipe line). Elimination of tempering operation: Implemented in Ennore plant through program modification in induction heating. On line monitoring: Comparing best practices with other plants & implemented Power Quality correction issues, Peak load management & eliminated wastages. 33 Total investment planned in FY :. lakhs 3 Sl.no Description Replace Reciprocating air comp by Energy efficient screw comp. Introduce on line MOTOR ANALYTICS in power intensive motors like Air comp, blowers & pumps Implementation of energy saving products in 3 works office renovation. Capex (Rs in L) Payback in years PDC 3. Jul' Completed. Jul'. Jun' Completed Eliminate CH stress relieving process in line. 3. Sep' Work in progress Remarks System improvement, Completed in air compressors Heat Pump for P two ROBO washing machines. Dec' Horizontal deployment Heat Recovery from screw compressor 3. Feb' Horizontal deployment Power Quality Improvement at P machine shop 3 Oct ' Introduce Energy efficient AHU, LED & Light pipe at new Engine assembly Replace & optimize years old A/C Units & lighting at MS & Metrology Lab Improve process changes & avoid HT & gear machining in-house. 3 Jan' Low cost automation - Maintain PF & harmonics with in limit at load side Planned Energy saving products in Project stage. Dec ' To reduce maintenance & operating cost Mar Estimated Units reduction per WD ISO Certifications Accolades TS: Our Processes are getting refined thru TS Standards ISO: Revised edition adopted in External CII - Energy Efficient Unit & Innovative Project Awards CII - Energy Efficient Unit IMTA National Productivity Merit Award - CMO Asia Asia Best CSR Practices Award ISO/ TS is expiring in Oct New IATF Standard released by ISO This year, We are migrating to New Standard (IATF:) nos minor NC logged and resolved in the past 3years. Six major resource conservation projects captured through O & T and completed. no OFIs logged during IRQS Audits & resolved in time Internal AL - : Gold Award AL : Silver Award AL - : Bronze Award AL - : Silver Award 3 3

10 /3/ Journey from 3