ACGL’s first sleeper coach launched

Four more bus models introduced as customer base expands

Automobile Corporation of Goa Ltd. (ACGL), one of India’s leading bus and coach builders, recently launched a range of new models to further strengthen its presence in the Indian bus market and also cater to the growing export demand for its buses. With a capacity to scale up its manufacturing operations and expanding its footprint across the country with a refined bus body building technology, the company, now on a rapid growth curve, is gearing up for bigger success.

Mr. V. Krishnamurthi, Managing Director, ACGL, talks to MOTORINDIA in an exclusive interview about his company’s growth strategy.

ACGL showcased its latest range of vehicles which included its first sleeper coach, completely designed and developed in-house, at the recently held Busworld India show in Mumbai. The other new models included an air-conditioned coach and two non-air-conditioned coaches, all with 49 seats for staff transportation, and the Classic, a 17-seater coach suitable for airport transfers and school bus applications. The company has also given a new-look front fascia for its buses.

Ever since becoming operational in 1982, ACGL, has had its emphasis on quality, safety, productivity and reliability. Apart from producing buses and coaches, the company manufactures sheet metal components and assemblies and has three factories in the villages of Honda and Bhuimpal in Sattari, Goa and one at Jejuri, Pune.

The main plant in Honda was originally set up as a press shop in 1980 for sheet metal stampings and assemblies for automobiles. In 2008, ACGL added facilities for manufacturing buses, including a state-of-the-art paint shop, at the plant. The second facility in Bhuimpal was set up in 1988 to manufacture bus bodies, while a third unit for pressing operations was started at Jejuri in 1998.

All of ACGL’s bus building operations currently happen out of its Goa facilities while the pressing operations are done at Jejuri. The company has a strong service and marketing network across the country which is expanding steadily.

ACGL has a staggering annual manufacturing capacity of 30,000 buses in two shifts. It currently rolls out 4,000 odd buses which leaves it with huge capacity available for utilization. “In 2011-12 we produced close to 4,300 buses while the figure for 2012-13 is likely to remain the same or may be slightly lower. We have huge capacities available to serve our existing as well as potential customers. We would be glad if our bus body building facilities are utilized by the OEMs as well as private customers, who would definitely benefit from the perfect balance between quality and cost which we provide”, says Mr. Krishnamurthi.

ACGL is also working on a whole new range of applications including tippers, armored vehicles and ambulances, all of which are in the pipeline. It has developed vehicle prototypes which are currently under testing at its R&D centre in Goa.

The company recently achieved a breakthrough of sorts in bus-body building technology. Usually the bus body is built after receiving the chassis from the OEMs, but ACGL has adopted a technique in which it develops the bus body using the chassis specifications without the actual chassis. “Once we receive the chassis specifications, we build the bus body and keep it ready, and when the chassis arrives we drop the body on it. The turnaround time has gone down from nine days to nine hours, as a result of which some of our customers saved Rs. 40 crores in inventory costs. This technique also saves a lot of time for our customers which further leads to faster ROI”, he adds.

The company has also increased its efficiency in bus body building by taking various steps to reduce the average labor required per bus, from 27 to a remarkably low level of just two workers.

ACGL has a growing customer base which includes Tata Motors apart from other leading vehicle manufacturers in the country. The bodies for Tata Hispano’s luxury buses are built by the company which also works with leading manufacturers, including Ashok Leyland and Eicher. In fact, the three new 49-seater vehicles on display at the show were built on three different chassis from Tata Motors, Ashok Leyland and Eicher.

Among private customers, the company works with MSRTC and other STUs and also makes tarmac coaches for leading airline companies. A large number of its buses are also exported to different destinations.

Boasting of a wide range of buses and coaches in its portfolio, suitable for various applications including staff transport, tourism, school buses and long distance travel, ACGL’s presence in the bus application building segment is growing rapidly. The company is aggressively working on expanding its customer base across the country. Considering the bright future for the Indian bus industry, ACGL seems to have got the right strategy in place to emerge a dominant player in the bus body building segment in the coming years.