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Tatas go off the beaten track to push truck sales

Parvathy Ullatil, Arijit De & Mansi Kapur in Mumbai | March 17, 2004 08:57 IST

Tata Motors, the country's largest commercial vehicles manufacturer, is hawking its transport management skills to Corporate India, and pushing its truck sales in the process.

The company has already approached Gujarat Ambuja, the country's fourth largest cement manufacturer, with a proposal to manage its transport.

"We are looking at an operations and management contract with Tata Motors. However, the negotiations are yet to be finalised. If the deal does take place, we will be looking at purchasing around 500 trucks from Tata Motors, which will also be responsible for servicing and managing the vehicles. This will lead to substantial savings," said Anil Singhvi, executive director, Gujarat Ambuja.

Singhvi said though it was difficult to estimate how much the company would save if the deal was struck, transport accounted for a significant portion of the cement industry's production costs. He added that Gujarat Ambuja had traditionally preferred Tata Motors vehicles to others.

Tata Motors is urging several companies in the cement, steel and other industries to switch from rail to road transport.

"It is a two-pronged strategy, where we talk to companies and generate demand for our vehicles and then go about addressing the demand," explained Ravi Kant, executive director (commercial vehicles), Tata Motors.

The company is planning to push its sales of tippers, dumpers and other special purpose vehicles, apart from mainline trucks, through this strategy.

Tata Motors has been talking to a number of other companies that require bulk transportation. "We hope this will create a demand for more efficient vehicles for easier loading and unloading and quicker transportation. We are looking at expanding the demand base," said Kant.

Taking a new route

  • Tata Motors has already approached Gujarat Ambuja with a proposal to manage its transport.
  • The company is urging several firms in the cement, steel and other industries to switch from rail to road transport.
  • The company is planning to push its sales of tippers, dumpers and other special purpose vehicles, apart from mainline trucks, through this strategy.

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