Eicher, a part of Volvo Eicher Commercial Vehicles (VECV), has played a key role in boosting the operational success of transporters and logistics companies across India. In a recent interview at Kapoor Diesels’ newly inaugurated, eco-friendly office building in Gurgaon, Director Vikrant Kapoor shared with Rajesh Rajgor how Eicher’s reliable vehicles and innovative technology have been integral to the company’s growing prominence in the logistics sector.
Kapoor Diesels, led by Vijay Kapoor, the Managing Director, whose experience and vision have been instrumental in the company’s growth, now has its logistics operations managed by his son, Vikrant Kapoor, the Director. Vikrant has been steering the company’s expansion into the logistics sector, continuing a legacy of adaptation and forward-thinking. The company’s roots trace back to his grandfather, who ventured into the diesel engine market shortly after India’s independence. “My grandfather saw the potential in diesel engines and began converting petrol engines using OEM kits,” Vikrant recounted. This pioneering effort, under Vijay’s leadership, laid the strong foundation that Kapoor Diesels builds upon today.
By 1995, Kapoor Diesels expanded into truck maintenance and repair, establishing one of the first heavy commercial vehicle service centers for a leading OEM in Delhi. “This move reinforced our industry presence and highlighted our role in shaping the commercial vehicle service landscape,” Vikrant noted. By 2008, Kapoor Diesels had fully transitioned into logistics, starting with four trucks. Today, the company operates a fleet of nearly 2,000 trucks, serving major sectors such as FMCG, e-commerce express delivery, warehousing and automotive. “We command almost 40% of the market in two-wheeler transportation and collaborate with nearly all major OEMs,” Vikrant proudly stated. Their specialization in automotive transport has driven success, especially through innovations like triple-deck trailers to meet high-capacity demands.
In recent years, Kapoor Diesels has diversified into warehousing, now managing over 1.5 million square feet of space across India. “We began with warehousing for the automobile sector and are expanding into FMCG,” he elaborated. This strategic expansion reflects Kapoor Diesels’ commitment to adapting to evolving market needs and leveraging new opportunities.
Kapoor Diesels thrives not only under the leadership of MD Vijay Kapoor and Director Vikrant Kapoor but also thanks to its highly skilled teams across various departments. “We benefit from well-trained professionals who manage key areas such as commercial and document management, finance and accounts, FMCG operations, automobile and warehouse management, sales and marketing, as well as repair and maintenance. These dedicated teams work seamlessly to streamline our operations and drive the company’s continued success,” Vikrant acknowledged.
Strategic Alliance with Eicher
A cornerstone of Kapoor Diesels’ success is their partnership with Eicher Trucks, which make up 50% of their fleet. This relationship highlights a blend of reliability, innovation, and driver satisfaction. Eicher Trucks are renowned for their fuel efficiency and comfort, qualities that align well with Kapoor Diesels’ operations.
Eicher Trucks are equipped with advanced fuel-saving technologies, making them ideal for Kapoor Diesels’ extensive operations. “The fuel efficiency of Eicher Trucks is a major factor in our fleet management, helping us reduce operating costs and improve profitability,” shares Vikrant. Their aerodynamic designs and efficient engines lead to significant fuel savings and enhanced operational efficiency.
Reliability is another crucial aspect of Kapoor Diesels’ operations. Eicher’s extensive service network ensures high standards of operational uptime. The availability of spare parts and prompt service support minimizes vehicle downtime. “The robust service support from Eicher is crucial for us, ensuring that our trucks remain operational and efficient,” he emphasized.
Driver comfort is a key consideration, with Eicher Trucks featuring ergonomic cabins and advanced safety features. Eicher’s Connected Vehicle Solutions (CVS) offer real-time monitoring, enhancing fleet management. “Eicher Trucks provide our drivers with the comfort and technology they need, which translates into better performance and satisfaction,” he highlighted.
He also highlights Eicher’s responsiveness to customer needs. “One of the most significant advantages we’ve experienced is their openness to product-level changes. Whether it’s adding new features or altering existing ones, Eicher has been responsive to our needs.” This flexibility extends to product customizations, such as specific tire types and enhanced cabin comfort. “Eicher has been proactive in addressing feedback from our drivers, improving their products based on our needs,” Vikrant added.
Vikrant further emphasizes the importance of understanding both customers and drivers in maintaining a competitive edge. “Driver feedback is crucial. Initially, there was resistance to monitoring systems, but Eicher’s integration of telematics and dash cams has been well received. These tools enhance efficiency and safety, not just monitor drivers,” Vikrant shared.
Kapoor Diesels’ commitment to innovation is evident in their approach to fleet management. They conducted a study with Delhi IIT on truck aerodynamics, leading to in-house modifications that improved efficiency by 4-5%. “This kind of innovation helps us stay ahead,” he revealed.
Fleet Management
Kapoor Diesels’ fleet management approach emphasizes continuous evaluation and adaptation. “Our fleet includes 60-70% trucks that are below four years old, covering both BS IV and BS VI models,” Kapoor explains. Despite challenges such as government regulations on truck life and rising procurement costs, the company aims to use trucks for eight to ten years, leveraging accessible CV financing to manage loans effectively.
Vikrant highlights the importance of fleet customization and customer-focused solutions. “If we had stuck to the same margins as eight years ago, we wouldn’t have achieved our growth. We focus on tailoring our fleet to current customer needs and building trust through customized solutions,” he states.
Looking forward, he highlights strategic goals for diversification and market expansion. “We aim to balance our business across various market segments to hedge against fluctuations. Our strategic plan spans six years, focusing on growth and innovation.” In terms of operational efficiency, Vikrant points to investments in Annual Maintenance Contracts (AMCs). “Covering 80-90% of our fleet under AMC helps manage costs and keep pace with technological advancements, minimizing breakdowns and improving reliability.”
He also acknowledges broader industry trends, such as improvements in road infrastructure and technological advancements, which positively impact operations. “While fleet procurement costs have risen, so have truck efficiencies and capabilities. Government efforts to improve infrastructure have helped offset some of these increases,” he notes.
Training is also a key component of their operations. “We’ve shifted from relying solely on OEMs for training to having an in-house trainer for drivers and other staff members; with ongoing training from OEMs for mechanics and fabricators,” Vikrant explained. Technology like dash cams with coaching features aids in instilling safe driving habits.
Kapoor Diesels’ approach to fleet management, innovation, and customer focus emphasizes their commitment to leading the logistics industry. “From starting with four trucks to managing a fleet of nearly 2,000, our journey has been marked by a cumulative average growth rate of 35%, demonstrating our enduring legacy and leadership,” Vikrant concluded. This growth story reflects Kapoor Diesels’ dynamic approach and unwavering dedication to success.