With impressive business performance and reputable brand image in the domestic aftermarket, Rico Auto is bullish on its growth and expansion in the times to come, in spite of a lull in first quarter this year. It is also planning to introduce aftermarket products for commercial vehicles by the end of third or early fourth quarter.
The Gurugram-based Rico Auto Industries Ltd. is a leading supplier of auto components to global and domestic automakers across two-wheeler, four-wheeler, and commercial vehicle segments for over four decades. It was only towards the end of 2017 that the company ventured into the aftermarket business, with a resolve to diversify its activities and consolidate brand presence across OEM and replacement markets in the country. The financial year that ended early this year was Rico Auto’s first full-term year in aftermarket.
Says Mr. Abhishek Kulshrestha, Vice-President – Corporate Materials and Aftermarket: “Our first financial year in the aftermarket business turned out to be really impressive and satisfying, registering a sales quantum worth Rs. 25 crores, along with a respectable brand image in the replacement markets”. The overwhelming response from dealer distributors and end users is encouraging for us to further fulfill the entire basket of consumer needs in this space, he added.
As of now, Rico Auto’s aftermarket product portfolio includes over 500 components for motorcycles and passenger cars. The company’s network consists of over 70 distributors across the country, along with export of aftermarket parts to neighbouring markets like Nepal, Sri Lanka and Bangladesh. The company is keen in leveraging the export potential of SAARC countries and African markets, especially the ones where India-made bikes and cars are sold, in the years to come.
Asked on the range of aftermarket components presented by Rico Auto, the Vice-President replied that his company has strategically devised its aftermarket basket and constantly makes new additions, after carefully studying the consumer needs and market potentials of our products. “Clutch Assemblies & Friction Disc are unique selling points of Rico aftermarket spares, including Brake Pads, Brake Shoes, Brake Drums, Pressure Plates, Chain Sprocket Kit and so on”.
He added that Rico Auto’s objective is to give best quality products in the replacement market. “We don’t have different quality standards for our OEM and aftermarket products. In fact, it is this quality reputation of Rico Auto branding that acts as a pull factor among distributors and end users towards our aftermarket products”. The awareness among end customers on the benefits of genuine and quality spares is constantly rising, and we are actively involved in bringing more awareness in smaller towns and rural markets as part of our marketing initiatives, he noted.
The company has set an aftermarket business target of Rs. 100 crores for the current year. Despite an absolute flat period for aftermarket in the first quarter of this year, Mr. Abhishek Kulshrestha and his team are still positive in chasing what seems like a challenging target, considering the pace the automotive industry is moving at this point. “We are trying our level best to keep up the momentum. We intend to introduce at least one new commodity to our aftermarket basket every month, while adding a minimum of 5 distributors into our fold monthly to improve our reach. An exclusive e-commerce portal is also being worked out for replacement spares to augment our presence, which may take shape in the next financial year”, he added.