Tata-DLT: High on hopes for 2015

Tata International DLT has been the leader in the country’s organized trailer market which has witnessed a sharp decline in the last couple of years. Despite the slowdown, the market leader continued to invest in new product development, coming up with some interesting new launches last year to help maintain its strong position despite the challenging situation in the market. The Pune-based trailer builder expects the coming fiscal to be much better in terms of market volumes and has high hopes of growth. Mr. Rajeev Batra, COO, Tata International DLT Pvt. Ltd., shares details.

Excerpts:

Business in 2014

Business at Tata-DLT in the current financial year has shown significant improvement in comparison to FY14. We have seen the market grow by nearly 70 to 80 per cent and have achieved a similar growth at our company as well.

We have expanded our presence into different new markets such as Rajasthan, Gujarat and the East during this year and have captured significant market share of the total market TIV. We have started operations in Jamshedpur from January this year to cater to the eastern region. We have developed and sold new products like truck chassis carriers, tip-trailers and canopy trailers among others and in addition, have supplied products for defense applications as well.

Major plans for 2015

This year Tata-DLT aims to sell the highest number of trailers in India, a figure which is expected to be over 2,000 units, from our Pune facility alone, though our capacity is much higher. We are looking to further expand our capacity in Pune as well as in other regions and are working on some special types of trailers which are likely to be launched in last quarter of 2015-16.

Expectations from CV industry in 2015

The new policies being formulated by the Government are definitely supporting business in India, and we are expecting almost 15 per cent industry growth in FY16. However, the removal of excise subsidy had slightly impacted the market in Q4, but it can be nullified by reduction in fuel prices and revision in the repo rate.

Industry policies & developments expected in 2015

The removal of excise duty is going to have a negative impact until at least the first quarter of FY16, but the reducing crude oil prices globally will definitely support the Indian economy.

The Government focus on the ‘Make in India’ programme will definitely support the Indian economy and attract foreign investment.

In the commercial vehicle segment, until a few years ago there was no major competition among OEMs but we now have many globally-renowned players set up full-fledged operations in India which is creating healthy competition. As a result of this, it is definitely the consumer who will be benefitted by the better quality, services and pricing.

The automotive industry showed positive growth in FY15, and we expect around 15 per cent growth in FY16. The commercial vehicle and tractor segments will show significant improvement when the Government releases funds for infrastructure development and mining projects.