VMT Industries - Providing Specialized Transportation Solutions
How do you see the growth potential of the Indian logistic industry and what positive trends are visible in the sector?
The growth of India's logistic industry is no doubt quite bright. It is worth around $160 billion and likely to touch $215 billion in the next two years, growing at a rate of 10.5% with the implementation of GST. During the last five years, it has grown at a CAGR of 7.8%, and is providing employment to more than 22 million people.
The Global Ranking of the World Bank's 2016 Logistics Performance Index (LPI) shows that India jumped to the 35th rank in 2016 from 54th in 2014 in terms of overall logistics performance.
In fact, India has improved its rank in all the six components of the Logistics Performance Index.
Realizing the importance of the sector and to address the inefficiencies, the government has included the sector in the Harmonised Master List of Infrastructure Subsector, which will benefit the sector in many ways.
What is the market size of Specialized Transport or heavy-duty vehicles like trailers in the country and what is VMT's share in it?
According to the latest VMT research report, the increasing trading activities across the country will significantly propel the heavy-duty truck trailer market over the forecast period. The Power and Windmill industries, Railways & Metros, Infra projects, and Heavy Construction Equipment will lead demand.
Though it's not possible to give the exact figures due to incomplete data and the presence of local manufacturers, but the current survey conducted by VMT indicates that over 5,000 hydraulic axles and 35,000 mechanical trailers of different categories were produced in India in 2017, and around 1.2 million heavy truck-trailers, worldwide.
Upsurge in VMT's production will positively support the transport and logistics industry, which, in turn, will drive the heavy-duty truck trailers' market share. Growing demand for heavy commercial vehicles like hydraulic axles, extendable trailers, ODCs and other mechanical trailers used in the power sector, windmill industries and infra applications with improved transmission, will further support penetration of the company's products.
VMT's innovative connectivity-based business model is driving demand for its products, given their enhanced safety, reduced cost of ownership, and greater convenience to owners. These aspects are propelling the company's heavy-duty trailers market size from 2017 to 2024 units.
What new business opportunities are emerging for the Hydraulic Axle Modular Trailers (HAMTs) and how is VMT positioning itself to garner a major share?
HAMTs are unpowered vehicles towed by a powered vehicle with the help of a hitch. These trailers are used to transport ODCs, heavy load of transformers, heavy construction equipment, etc, and are used mainly by the transport & logistic industry, power industry, railways & metros, windmill industry, and the infra sector.
The global trailer market is segmented into trailer type, axle type, vehicle type, and region. Based on trailer type, the market is categorized into hydraulic axle trailers, extendable or telescopic trailers, mechanical trailers like box trailer, flatbed, tripper, and others. Depending on axle type, it is bifurcated into single axle and tandem axle.
Reduction in cost of fuel consumption and emission, extra carriage capacity of the trailers, and their environment-friendly nature, impact the growth of the market, whereas, high maintenance cost, reduced resale value, and development of the transportation and logistics industry affect the growth of the global trailer market. These factors are anticipated to either drive or hamper market growth.
Being one of the largest hydraulic axle manufacturers in the world, VMT has the highest number of axles in the Indian market (around 60-65%) and 2 percent in the global market, and is geared up to produce more when demand arises.
Demand for higher capacity mechanical trailers is coming from the windmill sector; what opportunities does this present for VMT?
We see a huge opportunity in the windmill sector with demand for extendable/telescopic trailers set to be high in times to come. Though the windmill industry is currently passing through hard times, it does present a new market for various mechanical trailers.
Considering the future growth of this industry and demand for windmill blades and tower carriers, VMT has launched a Panta Axle - a kind of mechanical trailer of five axles made specially for carrying windmill blades and towers, with a maximum payload capacity of 75 tons. Basically, it is a multi-purpose mechanical trailer used in different industries for various applications. As per a recent survey conducted by VMT, there are around 400 extendable/telescopic trailers in the Indian market manufactured by national and international companies, out of which, VMT has over 60% share.
It is anticipated that by September end, the windmill industry will see more activity and we are fully equipped to meet the upcoming demand. In fact, VMT is very active in designing and manufacturing transportation that can carry extremely long loads and heavy components, which are now becoming bigger and heavier.
How well is VMT placed in providing customized solutions?
At VMT, we have the engineering resources and 60 years of experience to develop customized trailers as per the user's/project's requirement. Whatever business a transporter is in, and whatever be the application, VMT has the solution. The company offers HAMTs, ODCs, Special/Multi-purpose trailers, and all types of mechanical trailers, along with customized products.
The VMT team is always ready to guide its customers in selecting the right product as per the application / requirement, and our focus is always on quality and in providing value to the customer. Our experts understand each industry's particular needs and the application requirements, and they work with all the product lines to get the job done within the timeframe and at competitive rates.
What are VMT's plans for entering international markets?
VMT already has a strong presence in African and Asian countries. With our fourth production unit in Baroda, which is presently under-construction, we will enhance production and start exporting to many other countries. We have recently opened a branch in Thailand in association with a Bangkok-based company - SVND Bus & Truck Ltd, from where we will serve the markets of Indonesia, Malaysia, Cambodia, Laos, Singapore and other Asian countries. We also have plans to introduce our trailers in European and American markets.
Lifting & Specialized Transport — July - September 2018
Lifting & Specialized Transport July-September 2018
