AMW envisages to turn to overseas market
Asia Motor Works(AMW),the country's third largest heavy commercial vehicle manufacturer,is turning towards the overseas market 'with greater emphasis' after experiencing nearly 20 per cent slide in the domestic sales this year.
Speaking to UNI here today on the sidelines of the CII sponsored International Mining and Machinery Exhibitions, Managing Director and Chief Executive Officer(CEO) of AMW Anirudha Bhuwalka blamed the current slowdown of the Indian economy for the sudden dip in sales this year vis-a-vis last fiscal and said as an alternative initiative to jack up sales he had been exploring the overseas market in a big way.
He said though last year AMW had produced and sold about 10,000 (heavy commercial)vehicles of different types,this year because of the lesser demand within the country,they had sold only about 5,000 odd units fo sar.
'We are expecting to sell another about 3,000 odd vehicles this fiscal(2012-13)affecting about 20 per cent reduction in sales during the whole year,' Mr Bhuwalka said and explained the rationale behind turning towards a wider foreign market in the coming months.
He said since the inception of the Gujarat based company in 2008, AMW's sales touched the Rs 2,000 crore mark last year with the domestic market share in its category sliding down to about 12 per cent from around 15 per cent,they had not put great emphasis on export and sent their products only to a handful of neighbouring countries like Nepal,Bhutan and Bangladesh.
'But this year following the change in the overall scenario,we are looking towards exploring the wider markets in Africa as well as in the Middle East,' said Mr Bhuwalka, adding he had also decided to take part in a number of major roadshows in different countries to attract a large number of foreign customers.
About the AMW's product range comprising heavy duty(from seven tonnes to 49 tonnes)trucks and dumpers for mining and construction projects,Mr Bhuwalka said they were planning to launch not only a few more products in these categories in the coming years,but also bring in a complete range of other commercial vehicles to the Indian market soon.
'We are,however,yet to set any deadline for this,' he said replying to a related query.
About his current production facilities and future expansion plans,Mr Bhuwalka said their lone 600 acre plant at Bhuj in Gujarat was currently operating only about 20 per cent of its capacity and he had no immediate plan of expanding or modernising it further.
'Out of the total plant capacity of 50,000 vehicles per annum, we could produce only about 10,000 vehicles last year and this year the volume would be reduced further,' he sand and explained the reason for no further investment plan in the closely hold company.
However, Rs 1,500 crores had already been invested in the Bhuj plant,for R and D and for other purposes so far,he added.
About any technical or any other collaboration with any companies,he said AMW had already joined hands with the 'Cummings' (British) for production of high powered engines and with 'Efrios' (French)for an upgraded and more powerful gear box.
About his new products, the AMW chief said the company had recently launched a most modern air-conditioned 49 tonner 2528TP 'Tipper' for the mining industry at a price of Rs 2.7 million each.The product is being showcased in the exhibition.