Asia Motor Works (AMW), which is looking to sell around 8,500 units during this fiscal has announced a large-scale participation as principal sponsor at the IMME, India's largest exhibition for the mining and related industries. The Bhuj-based firm, which is aiming to achieve breakeven in the second half of the current fiscal, will demonstrate its might with its products targeted specifically at the mining industry. The heavy commercial vehiclemaker is also expecting an over 80 per cent growth in its turnover to Rs. 1,800 crore this financial year. At present, AMW has six platforms offering 15 variants and by the end of this financial year, with new products in the pipeline, the number of platforms would increase to 14.
At the IMME, the company will showcase its latest offering in the mining segment, namely a 31 tonne-8 x 4 tipper that is ideal for coal transportation. One of its kind in the AMW product stable, this product lends itself to high loading capacity and can be used for transportation of coal from crusher sites to railway sidings.
Anirudh Bhuwalka, MD & CEO, AMW, said, "At AMW we believe in challenging existing norms in the industry and have adapted a two-pronged growth strategy. We have made a mark in specialised segments of mining and construction and are all set to enter the mass market haulage segment to sustain our objectives of growth with profitable partnership with our customers. Our market leadership in our chosen segments has encouraged us to increase our product offerings to the highly demanding mining industry. We will introduce new products in 31, 25 tonne segment and are poised to enter competitive 16 tonne haulage market segment. We are privileged to be associated with CII and IMME, one of Asia's largest industry expositions, especially as this is the 25th year."
He further added, "With increased thrust on mining and construction, we are gearing up production and are seeking to penetrate existing markets with newer products, with improved features and performance parameters. On display at the IMME is our new offering in the 31 tonne segment, designed for use in the arduous and demanding mining conditions. Our vehicles have been recognised for their reliability, durability and performance and we are confident of cashing in customer goodwill as we venture into diversifying our product range."
"We currently corner around 3 per cent of the total market share in the Indian Commercial Vehicle market. Going forward, we want to get into the full range of 16-49-tonner trucks and cover all segments. As part of this, we will enter into the 16-tonne mass market with a competitive price," said A. Ramasubramanian, AMW President. He added, “Based on incremental volumes, we hope that our turnover this financial year would rise 80 per cent to Rs.1,800 crore from Rs.1,000 crore last year. The majority of the revenues are derived from trucks, trailers and tippers. We have already crossed the last year’s 3,300-mark in sales by September and hope to sell 5,000-5,500 in the second half. This will help us to achieve breakeven. In 2011-12, we hope to breakeven with a sale of 10,000-12,000 HCVs," he added.
AMW, which was founded in 2002, has a 515-acre manufacturing facility in Gujarat’s Bhuj with an installed capacity of 50,000 trucks per annum at an investment of Rs 1,400 crore. It is producing 700-800 trucks now and is piggybacking more on mining and construction business. AMW has 69 dealers across the country, which they want to raise to 150 in next three years with the expansion of product portfolio. Till date, AMW has sold 12,000 trucks, out of which about 200 trucks were exported to Bangladesh and Nepal Its 4923 was declared “Truck of the Year” by NDTV in January 2008. AMW has recently won the CV Innovation of the year Award for its 3123. AMW’s product portfolio includes its best seller, the 49 tonner - India’s First vehicle in this segment, 4018 and 4023 Tractors, 2523 rock & box body tipper, 2518 tipper, transit mixer and haulage vehicles. The third largest heavy motor vehicle manufacturer in the country is also one of the largest wheel rim manufacturers in Asia, whose clients include Tata, Daimler and Star Wheels.