York Transport ‘Trailer’-blazing in India

York Transport, a Tata Enterprise, is investing in India to widen its reach and market share

Singapore-based York Transport Equipment (Asia) Pte is working to-wards increasing its market reach in India. A Tata Enterprise under the control of TRF Limited, York has a manufacturing set-up in Jamshedpur and supplies trailer axles and under-trailer components to Tata Motors' trailer arm and the commercial vehicle arm in the guise of exclusive components developed for the World Truck. Tracing its origin to York Trailers of the UK, which then was one of the established trailer and trailer axle manufacturers in Europe, York established a presence in Asia Pacific in 1985 with the setting up of York Australia to gain a foothold in Australia for axles and suspensions for trailer applications. With the acquisition of Macteco, an Australian mechanical suspension manufacturer, York Transport Equipment (Asia) Pte was set up in 1989 to extend the reach of the company in the Asia Pacific region. Having strengthened the engineering and design centre for product improvements as well as new products development post the acquisition by Tata Group, India for York, according to P V Balasubramaniam, Director & CEO of York Group, is a serious area. Other than Tata, which is using York components for the last five years for their trailers, the company in India enjoys a client base with names like Transport Solutions India and Stokota India, which has entered into a joint venture with Lohr to manufacture car carriers.

Drawing attention at leading operators seeking fully built combinations of prime mover-trailer, which also helps with financing, Balasubramaniam announces that the Indian transportation sector is well aware of York, and that York components on Tata trailers have been doing very well. Engaged in the design, manufacture and supply of axles, suspensions and other components for trailer applications, York's product range includes axles from 12T to 17.5T in square as well as round beams, mechanical suspensions, air suspensions, landing legs, couplers, wheel rims, etc. Having ISO 9001 certified manufacturing facilities at Singapore, Australia and China in addition to the one in India, the products made by York meet various EEC standards and have compliance approvals with Australian Design Rules (ADR). Awarded the first Road Friendly Suspension certificate for the new Year 2000 regulations in Australia, York operates in key markets like Australia, Korea, Thailand, Singapore, Indonesia, Malaysia, Vietnam, Bangladesh, Sri Lanka, GCC Countries in Middle East, South Africa other than India.

Commenting on the Indian market, Balasubramaniam says, “The transportation market is changing. Operators are seeking good quality trailers, and this in spite of the fact that there is a fair number that considers under trailer components and axles a mere commodity.” Stressing on under-trailer components and axles as a very specialised industry that addresses specialised (application oriented) trailers, Balasubramaniam stresses the fact that York is not just into selling but provides solutions in consultation with the operators. Planning to aggressively market air suspension for bulk carriers and bogie suspension for mining (trailer/tip trailer) applications in India, in an effort to widen its reach in the country, York is reaching out to the operators. Most operators have anywhere between 200 to 1000 trailers, explains Balasubramaniam. “These could be ferrying steel coils, cement and else. By reaching out to such operators we advise them on a optimal solution and thus help them arrive at a product that meets their needs most, saving on maintenance, tyres, etc.”

Having clients like Stokota India, which has entered into a joint venture with Lohr; Transport Solutions India and more, York Transport is looking at setting up a manufacturing facility in western India. According to Balasubramaniam, the current facility at Jamshedpur does 2,000 axles per month (24,000 units per annum). At the new facility the company plans to produce up to 100,000 axles per annum — 50,000 in one phase and 50,000 in the other. This would be spread over a period of five years. Stating that York trailer axles can run for 100,000 km without service, Bala-subramaniam remarks that in Australia York launched maintenance free long-life axle with a warranty extending up to one-million kilometres. “We have a strong design team, which we are expanding,” he adds. Looking at offering customised solutions in India, the new facility in western India, according to Balasubramaniam will also include a testing facility, turning York's Indian operations into a fully fledged business arm with the presence of design and development centre, and a manufacturing and testing facility.

Expecting the prime mover market to grow at a rate of 30 per cent per annum, Balasubramaniam states that it expects other international trailer and trailer component manufacturers to enter the Indian market. “Service”, he quips, “will make the difference.” He adds further that his company is investing in the creation of a wider service network before aggressively selling the products. “We are training people into handling our products,” says Balasubramaniam. Emphasising on the fact that York products are competitively priced and backed by good service, Balasubramaniam recounts that his company is targeting air suspension for bulk carriers and bogie suspension for mining (trailer) applications. Having 15 service stations, York is looking at covering south and north India aggressively in terms of service. Striking down any possibility of York exceeding its trailer components brief, Balasubramaniam reiterates that service is where his company expects to score.

TRF to acquire Dutch Lanka Trailer

TRF Limited, an associate company of Tata Steel, is in the process of acquiring Dutch Lanka Trailer. In the first phase, TRF would acquire a 51 per cent stake for US$ 8.67 million and also sign a call and put option agreement for acquisition of the balance 49 per cent at US$ 8.33 million. Marking a foray into the trailer manufacturing business for TRF, the core business of company is engineering and supply of material handling equipment and systems. With a manufacturing facility in Sri Lanka, Dutch Lanka sells trailers in as many as 30 countries. In addition to this and a subsidiary in Oman that produces trailers for West Asian markets, Dutch Lanka, through its joint venture with Tata International, has a manufacturing facility at Pune. A 100 per cent subsidiary of Dutch Lanka, Dutch Lanka Engineering, specialises in repairs, maintenance and service business for trailers. TRF, which also controls York Transport, entered into a shareholders’ agreement with Tata Capital and Jasper Industries to form a joint venture, Adithya Automotive Applications, for providing end-solutions through fabrications and machining for vehicles to be used as tippers, load bodies, trailers, refrigerated bodies, among other items.
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