India's Vectra Group, a leading heavy engineering and equipment company, and Russia's Kamaz Inc., the largest truck manufacturer in Europe, recently signed an agreement to manufacture the Kamaz range of trucks in this country.
Vectra and Kamaz, who have been working together for several years, will manufacture the trucks at Hosur, Tamil Nadu, a place close to Bangalore.
"We are ready to enter the Indian market with our wide range of products and we are ready to set up a complete sales and marketing network across the country," Sergey Kogoghin, General Director, Kamaz Inc., said.
Vectra Group spokesperson Dilip Singh told Projectmonitor: "The trucks will be manufactured in our existing facility at Hosur. Production will start in October and the first truck is expected to roll out in November this year."
The Kamaz Vectra Motors 51:49 JV company will invest around $13 million to produce about 5,000 trucks within a timeframe of two and three years, which will be increased to 15,000 trucks later. The company plans to sell these trucks to the defence sector. "The company intends to produce 1,000 trucks (8x8) in the first year and 5,000 trucks per annum in another two to three years," Dilip Singh said.
The JV company is targeting $1 billion sales by 2011. It plans to corner at least 10 per cent of the Indian market and export 20 per cent of the production to Asian and African countries.
R.K. Rishi, Chairman, Vectra Group, told newspersons that the group had expanded its operations through partnerships with other global leaders such as Terex Corporation of USA, Fainsa of Spain and Eurocopter of France, and was now associating with Kamaz Inc. of Russia. Kamaz is one of the largest truck manufacturers in Europe and a leader in the cargo vehicle market in Russia and the CIS. It manufactures a wide range of cargo vehicles including tractors, side-board trucks, and tippers.
Source : ProjectsToday
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