Tatas
go off the beaten track to push truck sales
Business Standard — March 17,
2004
Tata
Motors, the country’s largest commercial vehicles
manufacturer, is hawking its transport management
skills to Corporate India, and pushing its truck
sales in the process.
The
company has already approached Gujarat Ambuja,
the country’s fourth largest cement manufacturer,
with a proposal to manage its transport.
Taking
a new route
- Tata
Motors has already approached Gujarat Ambuja
with a proposal to manage its transport
- The
company is urging several firms in the cement,
steel and other industries to switch from rail
to road transport
- The
company is planning to push its sales of tippers,
dumpers and other special purpose vehicles,
apart from mainline trucks, through this strategy
"We
are looking at an operations and management contract
with Tata Motors. However, the negotiations are
yet to be finalised. If the deal does take place,
we will be looking at purchasing around 500 trucks
from Tata Motors, which will also be responsible
for servicing and managing the vehicles. This
will lead to substantial savings," said Anil
Singhvi, executive director, Gujarat Ambuja.
Singhvi
said though it was difficult to estimate how much
the company would save if the deal was struck,
transport accounted for a significant portion
of the cement industry’s production costs. He
added that Gujarat Ambuja had traditionally preferred
Tata Motors vehicles to others.
Tata
Motors is urging several companies in the cement,
steel and other industries to switch from rail
to road transport.
"It
is a two-pronged strategy, where we talk to companies
and generate demand for our vehicles and then
go about addressing the demand," explained
Ravi Kant, executive director (commercial vehicles),
Tata Motors.
The
company is planning to push its sales of tippers,
dumpers and other special purpose vehicles, apart
from mainline trucks, through this strategy.
Tata
Motors has been talking to a number of other companies
that require bulk transportation. "We hope
this will create a demand for more efficient vehicles
for easier loading and unloading and quicker transportation.
We are looking at expanding the demand base,"
said Kant.
|
|