Asia MotorWorks plans to foray into LCV segments

Hyderabad: Asia MotorWorks Ltd (AMW), a heavy commercial vehicle manufacturer, is planning to foray into the bus and light commercial vehicle (LCV) segments in the next one to one-and-half years.

“Looking at the changing scenario in transportation needs, the company has decided to foray into this segment and currently we are in the prototype stage. As per the current plans, we should be ready for commercial launch in the next one to one-and-half years,” Mr R.C. Mangal, the company’s Senior Vice-President (Marketing), told newspersons.

The company is looking at both inter-city as well as city buses and has decided not to enter into any joint ventures. In the LCV segment, it is planning to launch a 12-tonne vehicle and sub-three tonne category trucks.

Mr Mangal said that the company plans to have a separate production line for this purpose. He, however, did not give out the exact investment that will be required for these product lines.

“For all the projects together, we have planned an investment of around Rs 2,000 crore. In the last four years, we have invested Rs 750 crore and the remaining portion will be invested in the next 18 to 24 months. The required investment is being raised with a mix of debt and equity,” he added.

The Mumbai-based company, Mr Mangal said, will be commissioning a new plant with an installed capacity of 50,000 units per year by the end of June this year.

“Currently we have a plant with a production capacity of 10,000 units per year. But looking at the increase in demand in the segment, we have decided to go in for a new plant which will begin commercial production from June end,” he said.

Once the new plant is commissioned, AMW plans to use the existing line for more research and development purposes like creating prototype shops.

“We are keenly looking at the export markets in South Africa and West Asia and plan to enter into franchise agreements by the end of the current fiscal,” he said.

The company last year sold 5,000 units and this fiscal is targeting sales of to sell 17,000 vehicles. Mr Mangal saidthat the turnover is expected to touch Rs 2,500 crore by the end of the current fiscal as againt Rs 530 crore achieved for the financial year ended March 31, 2008.