ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Competitive Collaborators

Competitive Collaborators Hansavivek BAJAJ TEMPO expects a keen and intense competition in years to come, since the Central government has given letters of intent and industrial licences to four new manufacturers to make light commercial vehicles with Japanese collaboration. To face the potential competition, the management intends to reduce fuel consumption, increase durability and economy in production, and improve the aerodynamic and aesthetic aspects of the vehicle. Meanwhile, the company's research centre has for the first time in India developed a six-wheeled light commercial pick-up Matador F 407 model, fitted with dual wheels on the rear axle. The vehicle is powered by a modern, fuel-efficient engine which is being manufactured as per the phased programme in collaboration with Daimler Benz of West Germany. The vehicle gives per litre of diesel 45 tonne km, as against F-305 model giving 26 tonne km and comparable vehicles produced by other manufacturers (maximum 21 tonnes km). The company intends to add this year one 'machining centre' to the plant in its research centre. This would enable it to make components of prototype engine, gear box, differential, rear axle, etc, for proving their performance. It is also finalising an order for programme-controlled hydraulic actuators. This equipment will enable it to test and determine life cy- cles of various aggregates of vehicles in the laboratory under simulated road and traffic conditions. This is possible by feeding pre-recorded signals from bad road conditions as well as traffic conditions to the equipment. During the year ended September 1982, the company produced 11,473 vehicles and sold 11,472 vehicles, as against 8,423 and 8,426 numbers, respectively, last year. Sales expanded from Rs 4971 crore to Rs 70.68 cro- re, and gross profit from Rs 9.31 crore to Rs 13.40 crore, reflecting a modest increase in margins. Net profit was Rs 7.24 crore (Rs 4.37 crore). Di vidend is stepped up by 2 points to 20 per cent, and the earnings cover is spectacular at 11.25 times against 7.67 times previously. As at the year- end, reserves stood at Rs 1878 crore against share capital of Rs 3.19 crore. The company is still awaiting government approval to its application for increasing the capacity which was submitted in January 1982. Normally, as per the Industrial Policy guidelines, the application should have been cleared within six months, but in spite of repeated follow-up the company has not yet been informed about final status of the application.

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