Madhus: Confident of CV segment turnaround

Madhus has been one of the most respected names in the country when it comes to garage equipment. Madhus deals with world-class brands in the garage equipment field, namely, Ravaglioli, Hunter, Car-O-Liner, Telwin, Capalec, Texa, JOSAM and Romess, offering the strongest and widest range of solutions in the Indian market. The company has high confidence in its customers and is working on expanding the customer base across the country. Mr. Ravi B.M., Managing Director, Madhus Garage Equipments Pvt. Ltd., expresses his optimism about the future of the Indian auto industry, especially the CV segment.

Madhus-Ravi-pic
Mr. Ravi B.M., Managing Director, Madhus Garage Equipments Pvt. Ltd

Excerpts:

Business in 2014

Our business in 2014 was just about the same as 2013. We did not lose ground in comparison to 2013 and are yet to regain the peak of 2012. As is known, the market for commercial vehicles has been in a bad shape due to the mining industry being shut down. But the sentiments are high due the fact that the new government has come in with a lot of promises, and some decisions are being taken to improve the market this year. Our major highlight for last year was that we introduced a new heavy commercial wheel aligner, and in 2015 the product will set new standards in the market. Our sales to Tata Motors, Ashok Leyland and others were flat, but business in the tyre industry was better.

Major plans for 2015

Our major plan for 2015 is to increase consumer awareness and penetrate all truck markets for sale of equipment. We are confident that the Indian market will make a turnaround soon, and with vehicle sales picking up and use of radial tyres widening, the need for tyre service equipment will only go up.

Expectations from CV industry in 2015

We are very optimistic, with the new government coming in and if you have seen our ads, it says, ‘vote for a positive change by choosing Madhus equipment’. The commercial vehicle equipment sector is dependent on the mining industry; so we are waiting for the Government to unveil its new policies. Although things are already positive, it can get only better.

Industry policies & developments expected in 2015

• We would love to see the GST reforms kick in at the earliest. This will help the industry transport goods faster and easier and avoid too many rules which exist today.

• We would like the road development authority to finish the Golden Quadrilateral project and make six-lane traffic the norm.

• We would like to see the dollar come back to its 2012 value (Rs. 50) as we feel this is the true value of the Indian rupee.

Medium- to long-term outlook

Madhus-pic

The CV segment is tied up in knots. Most of the industry reforms are not helping the sector. The interest rates are so high that vehicle owners go for new ones, and, as a result, the old vehicles remain on roads, leading to greater pollution. New modern vehicles are available, but many customers cannot afford to buy them due to high interest rates. So if interest rates come down it will make a big difference.

In the next 3 to 5 years, the CV segment can only go forward and do better. Fuel prices are coming down and new manufacturers are producing eco-friendly and fuel-efficient vehicles. We need to give them a chance to sell by bringing down interest rates. With the GST coming in, trucks will move from one State to another with lesser hassles and faster. Overall, it is a great thing to be part of a government which is talking progress