King Kaveri Trading Company (KKTC), a leading supplier of trailer axles, suspensions and related accessories from the Fuwa brand in the Indian market, is betting big on its new light-weight axles to enhance the efficiency of operation for fleet customers. The company, despite battling challenging market conditions, is expecting good growth in the new fiscal, driven by its new product offerings coupled with its plans on the digital retail front.
Mr. Suresh Kumar Arora, Managing Partner, KKTC, shares details of the current market scenario, his company’s business and future plans.
Excerpts:
2016 review
The year 2016 saw a flat growth for our company meeting with our last year sales & no growth, the major reason for the same is anti-dumping duty being levied on our products causing an increase of prices by 15%. Our achievements included receiving the ARAI approvals for our Landing Legs & King Pin.
Outlook for current year
The trailer market started flat and the demonetization caused a further shrink to the transport industry as it is majorly dependent on cash. ARAI approvals are also coming in place and the manufacturers and transporters are taking things slowly on a cautious mode.
Impact of Trailer Code and GST
Since all States have not given a thumbs up we feel the states accepting GST will be overloaded with orders and delivery will be slower. Once all States accept the GST the prices should come down and it also depends on the understanding of manufacturer.
Expectations from the Government
The Government should implement Legal Load implementation, scrapping of old vehicles, uniform taxes pan-India, and strict implementation of the ARAI structures.
Major plans for current year
We will be rolling our E-cart on our website shortly for sale of spare parts / other in which the customer can make online payments using net banking, Debit & Credit card hence promoting digital India. We are promoting ABS enabled Axles, Valx / Fuwa Axles which are 60 kg less as compared to the current Axles which will reduce the weight of a triple-axle vehicle by 180 kg, it also carries a warranty of 3 lakh km. Hence reducing maintenance cost & increasing pay load capacity.
Key factors for company’s success
Product quality, as our unique one piece, special heat treated, low alloy steel axle beam offers more stability, greater capacity and lighter weight. It is a world class technology. On time service & spares availability having pan-India presence. With the current changes influencing the market, we are regularly engaging with our customers providing them a timely update on ARAI developments & trying to resolve their doubts. Our parent company FUWA is spending 3% on R&D every year; hence we provide better technology & quality products with modernization YOY basis.
Sales targets
We will be ending with approx 10k unit sales this fiscal & by next year an increase of 30%.