Having already established a leading presence worldwide with its portfolio of clutches and gears, Ruen Inox Automobile has entered the aftermarket in India with a long-term plan, reveals the company’s Sales and Marketing Manager Boban Kocev in an exclusive interview with N Balasubramanian
Let’s start with a brief background about Ruen Inox Automobile: When, how and why was the company founded? How has your nearly 70 years of experience in the manufacturing industry been?
The Ruen factory was found almost 70 years ago, in 1952. Ruen initially began as a small manufacturer of clutches and gears. The main goal of the company after its opening was to supply clutches and gears for the Yugoslavian army and automotive industry. The required amount of products as well as improving the quality was only a preparatory step for further cooperation with leading manufacturers in this field and investing in innovative technologies. Experience gained with longstanding practice contributes this company to stand shoulder to shoulder with the most successful European premium brands.
In 2014, the company was 100% privatised by the local automotive production group. With the existing world-famous brand and solid industry fundamentals, implementation of new ways of management and effective sales and marketing strategies, the new owner started a new life with a new company named Ruen Inox Automobile. The new tagline of the company, the new design of the logo and packaging products show a brand new picture of this successful company.
It is interesting to note that Macedonia has one of the leading producers of clutches and related products for vehicles around the world. Please tell us about your manufacturing facility: What is the annual capacity, how many countries or markets do you export your products to from Macedonia?
Yes, it is interesting because we are coming from a small country but with a big impact on the global clutch market and automotive industry. Our factory is located in a small city in Macedonia – Kocani. The plant is established on 5 ha total surface with 3 ha of buildings (covered facilities) with 10 different facilities and departments: mechanical department, tool department, press department, heat treatment department, forging department, assembling department, quality control department, warehouse for receiving and inspection department, warehouse for finished products and administrative building.
The annual capacity of the factory is huge and even with the increase in sales over the past few years, there is capacity to be fulfilled. We export around 10,00,000 pieces annually with more than 2,500 different clutch parts. Nowadays we are exporting to more than 45 countries worldwide across five continents and the number of new countries for export is increasing constantly. We are focused on the local production factory as we have a very good position here; being in the heart of Europe it allows us access to good logistics and therefore at the moment we are not looking for establishing new factories in other countries. Our main goal is to keep the European production quality intact because it is our quality that has made us world famous.
Globally what percentage of your business comes from commercial vehicles, construction equipment, tractors and passenger vehicles? And what is your share of business from OEMs and aftermarket / replacement market?
Around 85 % of the production is focused on the truck and bus program, the rest is on passenger, tractor and construction equipment program. Nowadays we are mostly included into the aftermarket business. Around 80% of our production or even more are OEMs (vehicle manufacturers) who are recognising our quality. As such, we are also increasing our presence in the OEM market.
What is your presence in India as of now? What makes India a market of interest for you and what kind of a potential do you see here for your products and line of business?
The Indian market was very tough for Ruen to enter mainly because of the vehicle parc present in India – local brand vehicles that were not well known in Europe as also local clutch manufacturers which are very soundly established in all of India’s markets. However, nowadays the number of European vehicles being used in India is increasing, especially some trucks, buses and construction equipment, which is why we have taken this chance to enter the Indian clutch aftermarket. Thanks to our distributor, Netra Automobiles, who are very knowledgeable about the market potential, we have very quickly acquired a significant market presence in India. And even though our share in the Indian clutch aftermarket is small as of now, we plan to increase it in a short period.
Could you list the top three factors that give you confidence about your success in India?
The first and foremost factor that is giving us big confidence is that we have a good partner now in India i.e. Netra Automobiles. They know the market needs very well and they have a very good established sales network. The second factor is the increase of the European truck and bus fleet in India. The third factor is Ruen’s European premium quality together with very competitive prices.
What is your strategy for the Indian market? While some vehicle manufacturers have found it difficult in India, a number of multinational component suppliers have flourished very well in India with many of them going on to make India one of their main export hubs for other global markets. What can we expect from Ruen’s presence in India in the coming years?
Our strategy for the market is simple. We will focus on the European truck and bus fleet and some constructions equipment while slowly expanding to include the local commercial vehicle fleet. We believe that we can gain very big share in this program in a short period of time. You will therefore see the Ruen presence growing significantly in the coming years.
How important is the Indian market for Ruen at present? What are your India targets for 2022 and over the medium to long-term, how important would India be for your company’s global growth? What financial and sales targets do you have for the coming years?
At the moment the share of sales to the Indian market from the total Ruen sales is not big, but is increasing very fast. Therefore there is the potential of India becoming an important market for us if we continue with this tempo. In 2022 we plan to double the sales turnover. Till 2025 our plan and prediction is to have a leading market share in the European truck fleet program and a significant share from the local truck fleet program market.