THE NEW HEAVY WEIGHT

ASIA MOTOR WORKS

'CV Maker of the Year 2012'

COMPANY AT A GLANCE
Anirudh Bhuwalka & Shashi Ruia (head $17 billion ESSAR Group) came up with a serendipitous idea: TRUCKS. Anirudh launched ASIA MOTOR WORKS (AMW) to manufacture commercial vehicles (CVs) in 2004. The first prototypes rolled out in 2005.

AMW proved that price is not everything. The was to give a value proposition to the customer by transforming the product and service delivery.

Companys manufacturing base is in Bhuj, Gujarat (Capacity 50,000 units). Company has 85 Service Centres across the country.
Indias 3rd largest Heavy Commercial Vehicle manufacturer.

PRODUCT LINE
AMWs is specialized product line: Volvos featured trucks for the price of Tata or Leyland trucks. AMW at present makes HCVs of 16 to 49 tonnes. Four things about AMW Trucks caught customer attention: Increased Engine capacity of up to maximum of 270 hp (as against 180 hp). 9 Speed Gear Box (instead of usual 6-speed). Totally built body (instead of bare chasis). Totally revamped cabin space with air-conditioning and proper sleeping bunks for drivers to rest.

AMW truck with all these features costs only about 5 % more (i.e.. $ 40,000 instead of $ 35,000.for traditional trucks).
Advantages: A higher horse power & more space allows operator to carry more load on the same trip. Air-conditioning reduces driver fatigue and enables more trips in the long run. Built-up body means the truck can be put to business from day one.

HIGHWAY STARS : MARKET SHARE IN HCVs

VOLVO EICHER 3% AMW 5% ASHOK LEYLAND 24% FORCE MAN 1% MAHINDRA NAVISTAR 1%

TATA MOTORS 66%

MARKET SHARE IN HCVs (%)

AMW : SALES REPORT

AMW SALES
Year 2011
Year 2010 Year 2009 Year 2008
0 AMW SALES 2000 Year 2008 2377 4000 6000 Year 2009 3,270 8000 10000 12000 14000 Year 2010 Year 2011 6,791 12,000

AMW : PERCENTAGE GROWTH

120% 100% 80% 60% 40% 20% 0% Percentage Growth per Year

Percentage Growth per Year

PERCENTAGE

Year 08-09 37%

Year 09-10 107%

Year 10-11 77%

SALES PROJECTION FOR 2012-2013 FY

On focusing the previous sales of the company Significant rises in the sales figures : 37% growth for year 08-09, 107% for year 09-10 77% for year 10-11, As the percentage rises are high & varying we cannot go for any fixed pattern of the sales forecasting, any such calculation done might not provide such an exponential growth. But looking upto the last year growth in sales of number of Units as 12,000 and percentage rise of 77% for the year 2011-2012, we have to target for the next year sales taking into consideration the previous years data. Hence considering the current Down-Slide in the Overseas & Domestic Market and variation in the Government Policies and Interest Rates we can go for sustaining at a percentage rise of 75% 80% as a standard.

Figures:
Sales for 2011 : 12,000.
25000 20000

SALES FORECAST

Percentage Rise for FY 12-13 : 75 % to 80%.

Sales figures for FY 12-13: 75% (S is the change in sales.)
NUMBER OF UNITS

15000 10000
5000 0

75 =

S 12000

X 100

S = 75 X 120
SALES

YEAR 2011 - 2012

12000

YEAR 2012 - 2013

21000

S = 9000

For 80% the Sales change is 9600. Hence the Sales forecast for 75% = 12,000 + 9,000 = 21,000. 80% = 12,000 + 9,600 = 21600.

COMPETITORS AT A GLANCE

MAHINDRA NAVISTA are comping up with GPS Syatem installed in their Trucks. BHARAT BENZ is also landing up into th Market VOLVO EICHER, ASHOK LEYLAND, & other players are also opting for concept on which AMW is working.

NOTE: Facts & Figures have been referred from Business Outlook, Feb 2012 edition.