Omni Matrix, India’s only local manufacturer of tractor-trailer jumper cables, is optimistic of a quick turnaround in the market and hopes regulations such as the Trailer Code and GST to spur up the trailer market demand. We caught up with Mr. Nithin Prabhakar, General Manager, Omni Matrix Pvt. Ltd., to find out details.
Excerpts:
2016 review
The year started on a positive note, schedules were good and it was looking like a promising year. The trailer ABS code kicking in was expected to turn around our business but with demonetization and a slowdown in the economy, the schedules dropped. In spite of the slowdown we have achieved a 15% growth.
Outlook for current year
We are working with the OEMs currently. Though our country’s trailer market is still largely unorganized, with the Trailer Code becoming mandatory, we see a need for the trailer manufacturers to get more organized. We are optimistic the market will grow at a rapid pace from April.
Impact of Trailer Code and GST
The GST is bound to bring about a lot of change in the way freight is transported around the country. Once the Trailer Code is in place, the vehicle owners and OEMs will be forced to procure the products as per the standards.
Expectations from the Government
We expect the Government to have a keen focus on developing the infrastructure to promote the use of trailers thereby ensuring bulk movement of material and reducing freight costs.
Major plans for current year
We are working on an RFQ from Daimler AG in Germany and seem to be in a good position. We are hoping to get a positive feedback from them and are looking forward to growing our business by starting export of our products. This business should start in the first quarter of 2018.
Key factors for company’s success
Our patience has paid off as we waited for the market to turn. We knew India is a great market and it was a matter of time before which an effective government brought about the changes to ensure standardization and safety.
Since we are the only manufacturer of the products in India, it gives our customers an advantage over importing these parts as there is a big saving in the inventory carrying. We are a proactive team who are ready to meet the growing demands of our customers and support them with very short lead times.
Financial targets
The growth has been slow due to demonetization and a general slump in the market. We are likely to close FY17 at a turnover of Rs. 10 crores and target achieving sales of Rs. 18 crores in FY18.