Varuna Integrated Logistics surging ahead with JK Tyre

JK Smart fleetz“What is good about JK Tyre is that whenever we have given them any input they have got it implemented, and if they are unable to, they revert to give us the reason for it,” says Mr. Vivek Juneja, Managing Director, Varuna Integrated Logistics (VIL). With its administrative control in Gurgaon, Haryana, and fleet parked at Dharuhera, again in Haryana, VIL boasts of 55 branch offices around the country.

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Mr. Vikas Juneja, Chairman, Varuna Integrated Logistics

Based in Bareilly, Uttar Pradesh, Varuna Integrated Logistics is 20 years old. Started with just two trucks, the two brothers and co-owners, Vikas and Vivek Juneja, who registered the company in 1996, say with a sense of pride: “At that point in time, nobody used to make their transport businesses registered as private limited companies, and the trend was to buy a truck, run it and when you add a considerable number to your fleet, you think of registering. But we, from day one, made it into a private limited company.”

In Vivek Juneja’s words, in the next 10 years VIL bought 10 trucks. Registered in 1996, one year after its inception, VIL took up hauling contracts with Jaypee Cement and Clinker. Today, VIL owns a fleet of 1,300 trucks and reaches out to all regions of India transporting FMCG, pharmaceuticals, electricals and tyres.

Smooth sailing

From transporting tyres for major brands, VIL started using JK Tyre on its trucks almost from the time it commenced business. The VIL Chairman, Mr. Vikas Juneja, shares: “Annually we consume roughly 6,000 tyres. 80 per cent of which are radials and the rest bias tyres. Our trucks go on long hauls. The maximum distance travelled could be upto 10-12000 kms. As and when required, our trucks ply, whether it is Jammu & Kashmir, Pondicherry, Goa or Siliguri.”

Going is definitely smooth, what with the current company turnover hovering around Rs. 350 crores and only 6-7 per cent is the average spending on tyres. It also helps VIL that JK Tyre has a strong R&D base that enables it to know any hitch even before its clients like VIL experience it.

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Mr. Vivek Juneja, Managing Director, Varuna Integrated Logistics

Hand in hand

Remembering VIL’s journey with JK Tyre, Mr. Vikas Juneja says, “at first we used to sell JK Tyre and also used their tyres only on our trucks.” VIL maintains, as a rule, a full process of monitoring the performance of tyres from any brand before committing themselves.

Mr. Vivek Juneja explains: “For us CPKM is the biggest thing. Other than that, we go by what route a particular truck will ply, and if the terrain is unique then we must use tyres suitable for that. If one particular tyre is good on the front axle then we maintain that particular one for the front axle. If a particular tyre is good for the Delhi-Mumbai highway, then we get that tyre only for our trucks on that route. Generally, the sales and fleet management teams work with us when we try new brands of tyres. They give us their inputs, and my team gives them our inputs. Then all the data is fed into our software which tells us which brand of tyres to buy.”

JK Tyre is known for its client servicing, which is further proven by Mr. Vivek Juneja: “JK Tyre is proactive. It is important for me that the brand responds to me and JK Tyre does.”

The Chairman agrees, “They work towards a good personal relationship with us. And they give us attention one-on-one.”

According to him, periodical maintenance and checking done by VIL and JK Tyre, including wheel alignment, checking wheel rims and air pressure and all the other basic controls, have kept them in good stead.

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The upkeep

Vehicle and tyre maintenance and periodical training of the drivers are imperative steps for any fleet owner. Says Mr. Vikas Juneja: “It is so very important to maintain the upkeep of the vehicle, and especially the tyres that even a bit of carelessness will translate into 20 per cent increase in our overall cost.”

With a fleet that has an average age of 5-6 years, VIL ensures that they listen to their drivers’ requests regarding any specific requirement of vehicle or tyre maintenance.

Mr. Vivek Juneja explains: “Once the vehicle comes back home, its tyres are checked. After every trip, the gauge is measured and entered into our system. Then our experts analyse the data for any abnormal wear and tear. If there is any major difference, then we know that there is a problem there. We try for a vehicle not to come back for maintenance before the requisite number of kilometers are done.”

Both the brothers would like to opt for 100 per cent radials on their fleet. Mr. Vikas Juneja says: “Till the time Indian road conditions do not become better, using radials in the front is not going to happen. If the road conditions improve and the sooner we are able to expand our infrastructure, only then will we go for 100 per cent radials. But it is going to take time for us.” By practice, companies like JK Tyre conduct regular driver training programs so that they are kept updated on tyre maintenance.

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New moulding

While it is important for radials to get multiple retreads, JK Tyre responded to the request from VIL for further minimization of CPKM and of retreading. JK Tyre replaced its JDH with JDH3 that has more under rubber which allows for more retreads and better life, besides lower CPKM. VIL is perhaps the only company that uses more JDH3.

Mr. Vikas Juneja further says: “Despite the company encouraging us to retread our tyres more than two times, we stick to doing it only twice and prefer to sell the casings.” With 80 per cent of its tyres going in for retreading, it is helpful that JK Tyre is working alongside VIL for ensuring best performance.

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Pit stops

VIL co-owners would love to see pit stops made for taking care of their vehicles after a considerable number of kilometers. Mr. Vikas Juneja confides: “It would be great if tyre manufacturers can build pit stops every 500-1,000 kilometers where our trucks can stop and get checked. Currently, our company cannot take this up though we would love to make this our initiative.”

He is confident that the day they are able to establish one pit stop, they would be able to do it all over the country wherever their trucks are plying.

For a winning leap ahead, it requires successful teams to come together and work in tandem, as in the case of VIL and JK Tyre.