With the ambition of strengthening its presence in the Cold Chain Logistics segment, Eicher Trucks & Buses has launched reefer trucks in the Pro 1000 and 6000 category. These fully built and ready to use solutions range include Pro 1059XP (7.5T GVW) reefer, Pro 1110XP (13T GVW) reefer & Pro 6025 (25T GVW) reefer. These Eicher Pro refrigerated trucks are designed to keep the products fresh and can be used for varied applications. Mr. Shyam Maller, Executive Vice President – Sales, Marketing & Aftermarket, LMD Trucks & Buses, VE Commercial Vehicles Ltd., briefs the domain developments and company’s plans.
Excerpts:
Kindly comment on the reefer market size, growth during the next 5 years & segment popular models.
According to a study by Assocham, the cold chain sector which consists of surface storage and refrigerated transport is estimated to reach Rs. 623 billion (US$13 billion). The refrigeration transportation market is expected to grow at a compounded annual growth rate of 17 per cent in the next five years. With GST coming in, there would be the greater consolidation of warehouses, leading to demand for specialized trucks that can transport products fresh over longer distances and longer periods.
Reefer trucks that traverse the length and breadth of the country (multi-State operations) are usually on Tractor-trailers or on Multi-axle vehicles whereas regional distribution is done on rigid trucks, ICV. The last mile reefer trucks are on LCV’s and even on Pick-up trucks.
What are the growth drivers for cold chain transport in toto & more specifically the reefer vehicles?
- The Government is making considerable investments on road infrastructure -both express highways as well as rural roads. Improved interconnectivity and better roads optimise/reduce trip time which is critical when transporting perishable products
- GST will smoothen logistics and overall transportation across the country leading to seamless and rapid movement of goods from the place of produce to the point of consumption – also minimising the wastage from the “farm to fork”
- Seamless & rapid movement of goods is expected to happen after the dismantling of state check posts, octroi barriers post GST implementation
- Specialised logistics companies are expected to drive in technological advancement to improve cold chain efficiency
- Growth of organised retail and food service industry, proliferation of QSRs, increased export demand for processed and frozen food
- Increased use of reefers is also witnessed in temperature sensitive Pharma products besides growing segments like milk products, ice creams, confectionery, etc.
- Establishment of modern cold storage facilities facilitated by Government subsidies/incentives
The Ministry of Food Processing Industries provides financial assistance in the form of cold chain subsidy to entrepreneurs. Transporters also, especially in the fruits & vegetables, milk products, livestock segments can stand to benefit from this scheme when they adopt refrigerated / reefer trucks. Currently, the reefer truck owners are not fully aware about the whole process of availing subsidies. A greater awareness needs to be created so that potential buyers can come forward & benefit from the subsidy.
Brief us the special & technical features provided in chassis and application support for reefer vehicles.
The Reefer trucks from Eicher come with the following key benefits / USPs:
- Technologically finest:
- Light weight container: Strong & sturdy 125mm PUF insulated container body for frozen & chilled products
- Longer temperature retention: The fully built reefer can carry and maintain the temperature range of -25p C to +25p C at a high ambient temperature of +50p C
- Efficient OASIS 250 reefer unit from Carrier Transicold
- PUF insulated containers built by the renowned body builder Surakasha
- LED lamps inside the container for better visibility
- Foldable ladder at the rear for easy entry inside the container
- Drain pipe for easy drainage, which enables easy cleaning of the container
- Service window on container door for better loading/unloading without losing the temperature
- Separate fuel tank for refrigeration unit – 60 litres, first in the industry
- Widespread aftermarket support and warranty:
One stop warranty & service solution: 2 year warranty on reefer unit & 3 year warranty of reefer container apart from the individual chassis warranty which can be availed at any of the 279 authorized touch points across the country
- Easy Finance on completely built unit:
Single Invoice and Easy finance on complete reefer truck
- Best in Class Vehicle lifetime Profitability:
- Additional 12V battery for reefer unit operation & standby electric supply connector (Dual power mode)
- Low pull down time
- OEM tested and OEM build quality:
- ARAI regulated container from ISO certified body builder
Tell us about the fully built reefer vehicle (FBRV) program, customization & advantages in such an approach.
Eicher Trucks & Buses has introduced next generation series of reefer trucks in the Pro 1000 and 6000 category, one of the most profitable products of the Eicher Pro philosophy for cold chain logistics (long haul and last mile application).
The Eicher trucks are powered by proven, high performance E-483 & E494 engines equipped with Volvo Group EMS 3.0, available in BS-IV variants for best-in-class fuel mileage, high pickup & acceleration and turnaround time.
It also includes state-of-the-art cabin focusing on features to improve driver efficiency and utility. Advanced technologies such as Eicher Live, Fuel Coaching, Intelligent Driver Information system (IDIS), Cruise Control, parabolic suspension, Domex chassis & 395 L fuel tank option in Pro 3000 series
For a fully built reefer truck purchased by the customer from an OEM the GST payable on the entire unit is 18% as compared to 28% that is applicable on the Cabin chassis ,should the customer buy the truck chassis from the OEM and build the reefer by himself.
This should be a good facilitator for customers to buy fully built reefer from OEM S & which can be fully funded and ready to use from day one.
With the BS-IV and GST behind, how do you see the demand for reefer vehicles shaping up?
Post GST, many companies are in the process of consolidating their ware houses & tweaking their distribution networks. Secondly, with the Government’s huge investments in enhancing the current road infrastructure particularly in 4/6 lane highways, we expect the hub & spoke model to gain ground.
The Ministry of food Processing Industries recognises the fact that cold chain growth is essential for India’s success to upgrade the Food processing industry and has accorded it infrastructure status. This augurs very well for the demand of reefer trucks.
Multi axle trucks & tractor trailers are expected to see increasing usage in the hub to hub movement whereas in the hub to spoke sectors, ICVs & LMD trucks are expected to be deployed.