Trans ACNR, a leading name in the Indian bus air conditioning industry, continues to set benchmarks with its rapid growth and commitment to innovation. In an exclusive interview with N. Balasubramanian, Mr. Shatrughan Kumar, Managing Director of Trans ACNR, shared insights into the company’s performance in FY23-24, their strategic initiatives, and the evolving dynamics of the Indian bus market.
Strong Financial Performance and Market Leadership
FY23-24 proved to be a remarkable year for Trans ACNR, as the company achieved an impressive 85% year-on-year revenue growth. “We upheld our position as the largest bus AC manufacturer in India,” stated Mr. Kumar. This success was not only driven by the increasing demand from original equipment manufacturers (OEMs) in the internal combustion engine (ICE) and electric bus segments but also by robust export growth in regions like the Gulf, Africa, and Nepal. Looking ahead, Mr. Kumar is optimistic about the current fiscal year, expecting a 30% growth. “As of now, we are on track to achieve this target,” he affirmed.
Expansion and Innovation at Neemrana
One of the cornerstones of Trans ACNR’s recent growth has been the commissioning of their new state-of-the-art manufacturing plant at Ghiloth, near Neemrana, Rajasthan. This facility represents a significant upgrade, with a focus on backward integration, including the production of heat exchangers, sheet metal, tubing, wiring harnesses, and machining. “Our new plant is spread over 15 acres, with 50% reserved for future expansion,” Mr. Kumar highlighted, emphasizing the company’s forward-looking approach.
In addition to the manufacturing capabilities, Trans ACNR has upgraded its existing plant at Neemrana to enhance research and development (R&D) efforts. “The testing facilities will be NABL accredited, making it one of the most modern facilities globally,” Mr. Kumar noted. This emphasis on R&D is further supported by the establishment of the TRANS ACNR Academy, aimed at upskilling youth and preparing them for future challenges.
Capacity and Utilization: Scaling New Heights
The new Ghiloth plant boasts an installed capacity of 3,000 units per month, with the current utilization level at 65%. Mr. Kumar revealed plans to further boost capacity with the addition of a new assembly line in the UAE, which will add another 500 units per month. “This expansion allows us to maintain flexibility, better delivery terms, and improved quality and cost control,” he explained, underscoring the strategic importance of this investment.
Speaking of investments, Mr. Kumar shared that the total investment in the new plant, including the R&D facility and the UAE assembly line, amounts to approximately ₹130 crores. “We have plans to invest another ₹60 crores this financial year to upgrade infrastructure for production and testing facilities,” he added, signaling the company’s commitment to continuous improvement.
Prawaas 4.0: Reinforcing Industry Commitment
Trans ACNR has been a consistent participant at Prawaas, an event that brings together key stakeholders from the bus industry. Mr. Kumar expressed the company’s commitment to supporting the industry through their participation in Prawaas 4.0. “Our main focus at the show is to reinforce our commitment to the bus industry,” he said, highlighting the importance of such platforms in fostering collaboration and innovation.
Supporting the EV Revolution
As electric buses gain traction, particularly in urban settings, Trans ACNR is at the forefront of providing innovative cooling solutions. “Cooling solutions for EVs are a major thrust area for us,” Mr. Kumar emphasized. The company is actively collaborating with leading OEMs to develop and implement efficient cooling systems for electric buses. Additionally, Trans ACNR is working on decarbonizing the cold chain by offering refrigeration solutions for electric vehicles, covering both last-mile distribution and long-range transportation.
Bullish Sentiments
Reflecting on the current market dynamics, Mr. Kumar shared that the sentiment in the Indian bus market is overwhelmingly positive. “At present, the bus market is very bullish,” he observed, noting that the industry has not only recovered from the COVID-induced downturn but has also surpassed pre-pandemic levels. Diversification into air conditioning solutions for military applications and railways, along with a strong focus on the truck refrigeration business, are expected to drive future growth. “Our countrywide service network will further support this growth,” Mr. Kumar concluded.