With its new name, Tata International Vehicle Applications (TIVA) Private Limited is prepared to continue its decades of success. In an interview with TIVA’s CEO Rajeev Batra, Rajesh Rajgor finds out how the company is poised to take advantage of the growth potential offered by the trailer segment, the strategies being deployed to increase market share and the innovations that are being implemented to make their trailers best-in-class
The Indian trailer industry is slowly but gradually shifting to pneumatic suspensions. How has been the business for Tata International Vehicle Applications (TIVA) in the range of air suspension trailers for the past one year?
For the past 3-4 years the Indian heavy commercial vehicle (HCV) segment has witnessed a drastic change – either it is in terms of pollution-related norms or increase in axle loads, etc. In the continuation process of such changes, the Indian trailer industry is shifting from mechanical suspension to pneumatic suspension. Earlier it was only getting the benefit of 1 tonne extra payload per axle but after the introduction of 4 x 2 prime mover with 55T GCV capacity, now a fleet owner, transporter or end-user gets extra benefit of up to 6 tonnes in addition to 3 tonnes extra payload for air suspension.
The 54-tonne trailers are most popular nowadays with single air suspension and two mechanical suspensions with axle spacing. In totality, it gives customers a massive 9 tonnes extra payload on trailers with 55 tonnes capacity, coupled to 4 x 2 (six-wheeler) prime movers. This has now changed all the equations and operators are therefore moving from mechanical to air suspension to get the extra benefits. TIVA (Tata DLT) has developed its own air suspension giving best performance.
What is the percentage of orders that are demanding pneumatic suspension trailers and what is the percentage of mechanical suspension trailers per month?
As per H1 FY 2022-2023 statistics, TIVA sold 65% pneumatic suspension trailers and the rest 35% with mechanical suspension. Wherever the market has converted for absolutely rated load, customers are shifting to air suspension. Initially there was some apprehension for usage of air suspension because of some teething issues faced by the industry in air suspension but now the product is well-established and it has been accepted by the operators.
Given the above two scenarios, what has TIVA added to its product portfolio and what are you currently working on?
The key benefits of TIVA trailers with pneumatic suspension include 1 tonne extra pay load if there is an axle with air suspension configuration along with being comparatively maintenance-free with respect to conventional mechanical suspension. These trailers also offer better ride comfort, enhance the road life due to no shock impact and are less noisy in operation, etc. They are compatible with axle lift provision in un-laden condition of the trailer to improve the tyre life and offer better driving comfort, adjustable ride height for easy loading and unloading, easy combination with electronic functions like axle lift control at prime mover’s cabin, etc.
In the above-mentioned context related to product portfolio, for the benefit of operators TIVA has launched the ‘Gajraj’ range of trailers with special axle spacing. It has more than 100 variants where operators can avail extra payload by specific axle spacing along with air suspension combination depending upon their application of 52, 54 or 55 tonnes. The trailers are equipped with heavy-duty Tata DLT aggregates and air suspension. The Tata DLT air suspension is the first air suspension in the Indian industry which is designed and tested for 13 tonnes of capacity.
It has been tested by ARAI with a vertical fatigue test and has been running successfully in India for more than a year now. Moreover, all this comes supported with pan-India service network and 24 x 7 customer service which is very much required for the pneumatic range of trailers. TIVA has also added other products like 24-feet load body, stainless steel tip trailer, tipping trailer and curtain car carrier to meet the emerging demands of the transporters.
Could you give us a run-down of the existing products and its process of manufacturing that guarantees long-lasting sturdy performance?
Tata DLT has a vast range of ARAI-approved products in the trailer segment such as flat bed trailer, semi low bed trailer, side wall trailer, canopy trailer, skeletal trailer, tipper trailer, car carriers, curtain car carrier, SS tip trailer, load body, bulker trailers, coil well trailer, low bed trailer, tractor carrier trailers, and many more. The entire range is available with both mechanical and pneumatic or air suspension. We also manufacture a variety of customised trailers including bulkers, containers, platforms and rock bodies. In addition to that we have recently started supplying tippers to various OEMs and the development of modular trailer is also in process.
What is the market share that you enjoy in India? Could you elaborate on the clients and orders that have been acquired in recent times?
TIVA is the largest trailer manufacturer in India. Definitely, by using our core competencies, competitive advantage and cultural capability we are covering almost 90% of all commercial vehicle segments, tippers and defence products. TIVA has wide sales and service network across India. We have a healthy market share of around 14% in major states like Maharashtra, Rajasthan, Gujarat and Uttar Pradesh in the trailer segment. In some of the states our market share is more than 25 %. Though the FBV business has reduced drastically, I still believe that if OEMs consider it a line business then it can increase their top-line and market share. Considering the cyclical business of commercial vehicles, we are targeting the defence sectors also and now we are one of the most preferred vendors for defence agencies like DRDO, VRDE and RCI in India.
Our approach is that of ‘customer first’. This gives us confidence and helps build trust with our customers. That is the reason we are a market leader in the trailer segment. Providing the best of sales and service is our philosophy. In recent times, the key customers acquired include CJ Darcl, DP World, Hind Terminal, Saizar, Western Carriers, Inland World Logistics, Ashmi Logistics, Concor India, and some defence agencies as mentioned earlier. These are also some of TIVA’s key customers with whom we have been associated since years. We have a strong reputation among retail customers and those are equally important for us. We are working to strengthen our dealership network to improvise our reach to retail customers.
Could you share a brief about the recent showcase by TIVA at Gujarat’s defence exposition and the work you carry out for India’s defence segment?
We were honoured to participate in the recently conducted marquee military event Def Expo 2022 held from October 18-20 at the Mahatma Mandir Convention and Exhibition Centre in Gujarat’s Gandhi Nagar. The stand was designed to display Tata DLT products indigenously designed, developed and produced to provide solutions for Indian military mobility. We are working on big projects and are associated with government agencies. Our focus is to develop a strong line of business in the defence sector. We have a qualified team of design engineers and are able to manufacture for matching the different requirements of the defence agencies.
How are the current production levels and utilisation per month at all the four plants?
Currently TIVA is running at high production levels with its four plants having capacity of producing more than 1,000+ trailers in a month. All of our four manufacturing facilities in Ajmer, Jamshedpur and Pune, which have so far delivered more than 45,000+ trailers across India, would continue to manufacture world-class trailers as per the requirement from our customers. We offer a wide range of high-performance trailers suited for every need. The trailers stand apart for their innovative designs based on practical insights and customer needs. The company works closely with OEMs as well as leading and emerging transporters.
The company also helps arrange financial support in close cooperation with commercial vehicles manufacturers and financial institutions. With its rich experience and promise of quality, TIVA has grown to become one of the biggest manufacturers of trailers and truck bodies in India. Our fully integrated manufacturing module is driven by quality. For instance, we are using design software AUTO CAD and for 3D modelling CREO 2.0. For static analysis we use Pro-Mechanica. The sub-assembly parts are ARAI-tested and all the components are cut on computerised plasma, CNC bending and beam cutting machines along with rolled beams of high tensile material grade with single piece. There are many more such best-in-class software applications that we can list.
Could you brief us about your work in trailer aggregates and its contribution to your overall business?
To manufacture trailers there are key major aggregates required that include axles, suspension (mechanical or air suspension), and lifting mechanism and landing leg which we used to buy from aggregate suppliers. During the peak period of the market, trailer manufacturers used to face part availability issues. Aggregates contribute 30-35% of the total cost of a trailer. Seeing the opportunity that this provided, TIVA decided to go for backward integration to develop our own aggregates to get advantage of cost optimisation and reduce dependability on aggregate suppliers.
Now we are completely ready with our own aggregates and are able to transfer the accrued benefits to our customers. Additionally, TIVA introduced air suspension system as per CMVR norms to get 1 tonne extra load and therefore customers can carry more payload with this configuration. Now TIVA has successfully established the air suspension system. We feel proud about such indigenous initiatives and developments, especially because the customers’ acceptance has been very high.
Overall, with TIVA retaining the brand Tata DLT, what’s the changeover in shareholder pattern like and what’s the brand communication?
The company name has been changed from Tata International DLT Private Limited to Tata International Vehicle Applications Private Limited with effect from January 18, 2022 as duly approved by the Registrar of Companies and the Ministry of Corporate Affairs. Since the company is always on the drive to expand its product base and market reach, the name of the company was changed pursuant to the 100% acquisition of the shares of DLT by Tata International Limited, which is our parent company. We would like to reiterate that this is just a change of name – our soul remains the same. The company would continue to operate from its existing locations.
As such, our registered office, manufacturing locations and our contact details remain unchanged. However, the changes in the domain name and the website of the company have been implemented. We have developed another range of trailers under the brand of TIVA Trailers. The company is now working with three brands of products for various applications, namely, Tata DLT, TIVA Trailers and Mega Loader. With a competent team in all functional areas backed by strong and experienced management, we are committed to deliver our best-in-class services, products and operations.
What are your plans for the current FY 2022-23 (CAGR growth) and outlook for medium to long term?
After a three-year slump, the trailer and commercial vehicle segments are both exhibiting signs of improvement. In FY23, we anticipate tremendous growth. The retail and direct business with OEMs and defence sectors are experiencing growth in the target market. In our direct business with OEMs we anticipate multiple growth levels with focus on retail consumers that choose to purchase under a single invoice for easier financing in addition to our KAM clients. Retail and Defence businesses are expected to grow strongly. We are in advanced talks with defence agencies and are expecting to grow at a strong pace in the next 3 years’ time.