A pivotal moment in the company’s path to success
In the field of trailer and transportation solutions, Jagdamba Trailers has been making waves. Their recent feat of securing the endorsement of industry titans such as Tata Motors and Ashok Leyland is viewed by the company’s Director, Gyan Singh Kshatriya, as a momentous milestone in their pursuit of success. In an exclusive conversation with Rajesh Rajgor, he shared insights into his company’s readiness and standing within the trailer segment in the country
How does Jagdamba Trailers view the importance of securing approvals from Ashok Leyland and Tata Motors, and what’s the key to its rapid market acceptance and popularity?
Securing approvals from Ashok Leyland and Tata Motors is regarded within Jagdamba Trailers as a momentous achievement, signifying a significant milestone on our path to success. It serves to reinforce our unwavering dedication to delivering top-notch products and further solidifies our standing in the industry. Ashok Leyland is requesting a monthly supply of 100 units, while with Tata Motors, we are currently in the process of developing a prototype. They have committed to utilize a substantial portion of our production capacity once it’s ready.
From the very outset of our journey, we meticulously charted a growth strategy that encompassed expanding our market presence, establishing institutional partnerships, and forging alliances with OEMs. Our rapid ascent in the industry can be attributed to a combination of factors, including our profound understanding of the trailer market, our unwavering commitment to producing high-quality products, and the concerted efforts of our proficient marketing and technical teams. Furthermore, our deliberate focus on brand strategy, nurturing strong customer relationships, and delivering exceptional post-sales service have all been instrumental in facilitating our swift and successful growth.
In recent years, we’ve observed a shift towards Fully Built-up Vehicles (FBVs). What are the factors propelling this shift, and what implications do you foresee for the transportation sector, particularly the tip-trailer and trailer space?
The transition towards Fully Built-up Vehicles (FBVs) is being propelled by government safety regulations, easily accessible financing options, and ongoing infrastructure development. Customers now favor trailers with standardized quality that are readily available, as opposed to waiting for fabrication in the tune of 15-45 days. This transition is set to enhance the economic efficiency of transporters. It’s expected that other Original Equipment Manufacturers (OEMs) will also follow suit, granting early adopters like Tata Motors and Ashok Leyland a marketing advantage.
How do you plan to balance your presence in both the OEM and open market segments, especially with direct supplies to OEMs?
We understand the importance of maintaining a balanced presence in both the OEM and open market segments, particularly with our direct supplies to OEMs. The open market has been our steadfast companion, guiding us every step of the way and allowing us to establish ourselves as the leading player in the industry. We have no intention of relinquishing our position in the open market, even as we provide direct supplies to OEMs. In addition to Tip Trailers, we currently offer various other products, including Tippers, Sidewall Trailers, Flatbed Trailers, semi low bed trailers, and skeletal trailers, exclusively to the open market and that remains the key for our brand.
Could you outline your strategy for meeting the increasing demands of OEMs and becoming a leading supplier in this sector?
Indeed, it is a fact that we cannot single-handedly fulfill all the requirements of OEMs. Nevertheless, as the demand from OEMs continues to grow, we are prepared to expand our production capacity accordingly. Our well-defined plans aim to establish us as the foremost trailer suppliers to OEMs. To achieve this objective, we are already engaged in discussions with our associates and partners. Additionally, we are strategizing to establish additional facilities in various regions across the country. Our existing facility’s strategic location near major power plants, coal mines, iron ore mines, and steel plants provides us with a significant advantage, enabling us to manufacture and supply efficiently in high-demanding geographical areas. We have already boosted our capacity by 20% in the last 3-4 months, with plans to increase it by another 25% by November, specifically for OEMs. As the demand from OEMs grows, we will continue to expand our capacity. Additionally, we are actively engaging in discussions with our associates and partners and strategizing to establish additional facilities strategically located near key industries.
Please elaborate on your commitment to technological advancement and product differentiation, and how this will benefit both your customers and OEM partners?
Our commitment lies in embracing technological advancements and implementing product differentiation to provide our customers with the latest and most innovative products available. This approach not only positions us as frontrunners but also benefits OEMs. We have established exceptionally high-quality standards that instill us with unwavering confidence in the performance of our products. Repeatedly, we have demonstrated that our trailers surpass those of our competitors, earning us a distinguished reputation.
What are the driving factors behind the current growth in the truck and trailer space, and what do you foresee for the industry in the coming years?
We anticipate a consistent upswing in the demand for truck trailers, and several key factors underpin this expectation. Firstly, the rise in per capita income is contributing to increased transportation needs. Additionally, robust industrialization, the accelerated pace of infrastructure projects, and political stability are all driving forces behind this growth projection. This economic upturn is indicative of a broader trend – a substantial surge in overall automotive demand, with truck trailers leading the way. Furthermore, the government’s plan to enhance Gross Vehicle Weight (GVW) is poised to bolster this demand even further. The introduction of a scrappage policy has already made its presence felt, and its full impact is yet to be realized. The overall outlook for the truck trailer industry appears highly promising, especially in the next five years. To provide context, truck trailer sales in India stood at 56,000 in FY23, and according to analysts’ predictions, this number is expected to cross the 80,000 marks in the next three years.
How does Jagdamba Trailers plan to capitalize on its recent approvals from Tata Motors and Ashok Leyland, and what are your future plans for growth?
Our longstanding vision has consistently revolved around taking the industry lead through the delivery of technologically advanced, top-quality products, all while ensuring the utmost satisfaction of our discerning customer base. Securing approvals from prominent industry giants like Ashok Leyland and Tata Motors represents a pivotal achievement in our journey. We are firmly dedicated to meeting and exceeding their expectations. To realize this commitment, we have formulated plans for enhancing our facility, expanding our production capacity, and extending our market presence, all geared toward augmenting our market share. The management team at Jagdamba Trailers is resolutely committed to providing best-in-class trailers, characterized by punctual delivery and maintaining exceptionally high standards in post-sales service.