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MACHINIST - Vectra Group and Kamaz Inc. form joint venture to manufacture trucks

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Home arrow News arrow Alliances and Joint Ventures arrow Vectra Group and Kamaz Inc. form joint venture to manufacture trucks

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Vectra Group and Kamaz Inc. form joint venture to manufacture trucks
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Written by Anand   
Friday, 24 April 2009

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Bangalore: Vectra Group and Russian CV manufacturer, Kamaz Inc., have signed a joint venture agreement in Bangalore, to manufacture the Kamaz range of trucks for the Indian market.  The 51:49 Joint venture between Kamaz Inc and Vectra Group will invest $13 Million (INR 648.3 million) into its plant at Hosur, near Bangalore and is expected to commence operations by the end of 2009.

Initially, in the first phase, the Kamaz Vectra Motors Ltd. will produce 5000 commercial vehicles. The production would be ramped up to 15,000 vehicles in 3 to 5 years time.

The production of these trucks will take place in Hosur ( Tamil Nadu), near Bangalore.

Mr.R.K. Rishi, Chairman, Vectra Group said,"The focus of the Group moved to the automotive, engineering and construction equipment sectors across Eastern Europe and India. Thanks to the support of Vectra’s extensive knowledge of the region and its long-standing relationships, Vectra has been able to expanded its operations through partnerships with other global leaders such as Terex Corporation of U.S.A., Fainsa of Spain & Eurocopter of France & now  is joining hands with Kamaz Inc, of Russia to manufacture Kamaz range of trucks in India."

The company is targeting a 10% share of the Indian Commercial vehicles market through this foray. Kamaz Vectra Motors also plans to export 20% of the production to Asian and African countries. Some of these trucks will also be sold to the Defence forces.

“We are ready to enter the Indian market with our wide range of products and we are ready to set up a complete sales and marketing network including appointment of distributors/dealers across the country. Kamaz pays a great deal of attention to the service arrangements in each country where it has operations by engaging local personnel and experts. ” said Mr. Kogogin, General Director, Kamaz Inc.

Kamaz Inc. & Vectra Group have been working together for several years.

Kamaz Inc. is one of the largest truck manufacturers in Europe and leader in the cargo vehicle market in Russia and the CIS countries, such as Ukraine, Kazakhstan, Turkmenistan, and Belarus. Kamaz Inc. manufactures a wide range of cargo vehicles, including tractors, side-board trucks, and tippers. The vehicles come with wheel arrangements in different sizes and dimensions: 4x2, 4x4, 6x4, 6x6, 8x4, and 8x8, and with gross weights up to 120 tons.

Operations of the Vectra Group are primarily in India and Eastern Europe spanning over 18 companies with 8 manufacturing facilities in 6 countries. The core businesses of the Group includes Aviation, Distributorship of helicopters, maintenance and repair facilities, offshore and onshore flying,·Heavy Engineering: Manufacturing of trucks and superstructures, earth-moving equipment, luxury automotive and railway seats, Real estate, Information technology, Security systems, Exploration and production of oil.

 
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