OREANDA-NEWS. November 03, 2010.The prospects of OJSC KAMAZ and KAMAZ VECTRA MOTORS LIMITED Russian-Indian Joint Venture in the Indian market were discussed at the JV’s dealers’ conference held in Bangalore at the end of October 2010.

The event consisted of two parts. The first one was devoted to presentations, and, in the course of the second one, negotiations and round-table consultations were held. The KAMAZ main company’s representatives, as well as department heads of KAMAZ VECTRA MOTORS LIMITED (KVML) made their presentations in front of the participants at the conference. Besides, the representatives of the Indian partner companies expressed their vision of the prospects of cooperation.

Ashot Arutyunyan, Director of Marketing and Advertising of OJSC KAMAZ, made an analysis of the Indian market state before the audience at the conference. During the presentation of OJSC KAMAZ’s new products and means of their promotion in the Indian market, the KAMAZ top manager presented the guests the main stages of implementation of the Program of Work with Corporate Clients.

The Russian-Indian enterprise in Hosur is currently developing according to the plan approved at the meeting of the JV’s Board of Directors on the 25th of February. Within this financial year (which finishes in India on the 31st of March), 1,000 locally assembled KAMAZ vehicles are to be delivered to the market. Whereas in the first year KVML produces only one model of a KAMAZ-6540 eight-wheel dump truck, in the future the plant with a full capacity up to 5 thousand trucks a year plans to produce vehicles specially adapted to local conditions: a KAMAZ-5460 long-haul tractor, KAMAZ-65115, -6520 and -65201 dump trucks, and also a new model – “the Indian version” of a KAMAZ-6540 four-axle high-sided truck. This truck is intended for cargo transportation on asphalt highways built in India during the latest years. Vehicles with a limited axial load under 10 tonnes are allowed to run on these roads which cross the country from the north to the south and from the west to the east.

Both large-scale construction projects and industries requiring trucks further promotion of KAMAZ machinery in India. The main buyers of KAMAZ vehicles are mining and building companies. A heavy-duty trucks segment of the Indian market is currently developing. But the largest part of the Indian truck market is a medium-duty trucks segment which is represented by KAMAZ-65115.

KVML CFO Hanuman Sharma made a detailed analysis of the company’s financial condition in order to concretize the prospects of the Russian-Indian enterprise. He suggested the dealers of the enterprise a number of financial schemes which can be used to execute machinery purchase transactions through banks and leasing companies of the country. In particular, the representatives of India’s second largest private bank – ICICI Bank – showed their interest in such cooperation. A separate report on financing of KAMAZ vehicles sales transactions in India via ICICI Bank was presented at the conference.

Arvinder Singh, Director of Sales of the Indian representative office of LUKOIL, participated in the conference, too. He presented the aspects of cooperation with KVML focusing attention on the successful partnership between OJSC KAMAZ and LUKOIL in Russia.

According to the results of the conference, 11 dealer agreements were signed by KVML and dealer companies. It should be noted that the territory on which the signers work forms 87% of the whole territory of India. Besides, KAMAZ VECTRA MOTORS LIMITED has got the first foreign dealer – Lhachhen Mineral Industry from Thimphu, Bhutan. In addition, three orders for delivery of the first batch of KAMAZ-6540 vehicles were made, which became a great finale of the conference.