Waqar Asghar is the Chief Executive Officer of VPL Limited. VPL Limited is a leading supplier of trucks, buses, construction equipment, mining equipment, engines and generators along with comprehensive after-sales support and value added services. The company's diversified product portfolio addresses needs of its customers in transportation, construction, cement, mining, oil & gas and power segments. The company is the authorised distributor of Volvo Trucks, Renault Trucks, Volvo Buses, Sunwin Buses, Golden Dragon Buses, Volvo Construction Equipment, Terex Trucks, Sandvik Mining & Exploration, Volvo Penta Industrial & Marines Engines, Gomaco Concrete Pavers, Linhoff and Onis Visa Generators.
Following are the edited excerpts of a candid conversation BR Research had with Mr. Waqar Asghar.
BR Research: Tell us about the history of VPL Limited?
Waqar Asghar: VPL is wholly owned subsidiary of Panasian Group founded in 1969. Today Volvo is the strongest European Brand in Pakistan. One of the prime reasons of Volvo's strong branding in Pakistan is Volvo Bus Project executed by Panasian Group in 1980's. Volvo trucks were introduced later in 1990s. Panasian Group arranged Swedish grant for 650 Volvo Buses to upgrade urban transportation segment in Pakistan. Punjab Road Transport Corporation (PRTC) was formed to execute the project. Swedish Government with support from Panasian Group and Volvo Bus not only provided the buses but also provided complete consultancy including complete systems, infrastructure, processes and route planning. Panasian Group also managed complete transfer of technology as some of the buses were imported as (CBUs) while local body builder was engaged to develop bodies for the remaining units. Volvo Bus Project was very successfully managed in the initial years, however, later like in any other government projects; the project started facing maintenance and operational mismanagement issues.
BRR: What is the life of a passenger bus in general?
WA: Useful life of bus depends upon many factors like quality of the body material, its regular upkeep and maintenance, weather and climate conditions. Useful-life of a locally manufactured bus ranges from 3-5 years. However, useful life of a Volvo Bus is between 10 to 15 years. Today, there are numerous examples where Volvo buses are still in operation after completing 20 years.
BRR: What is VPL Limited's plans now?
WA: Today market is flooded with Daewoo Buses because there is no other option. Our aim is to transform intercity travel both for the travelling public and long distance bus operators. We have introduced Volvo B11R to set a new dimension to intercity bus travel. It comes with highly fuel efficient engine that cuts operating cost and Volvo's quality standards combine functionality with passenger comfort and lifecycle productivity. We have plans to introduce Volvo other models during later part of the year. .
BRR: Since the Volvo engines are diesel operated, don't you think that it is a threat to especially at a time when the stress is on environmental friendly technology in the transport sector?
WA: If you look at Volvo core values, one of them is care for the environment. You will hardly find any other manufacturer who has environment care as their core values. Volvo has latest engine technologies up to Euro VI but we have selected Euro III keeping in view the quality of local fuel. We are using Euro III for more than a decade in Volvo trucks without any problems. Volvo engines produce lesser emissions due to which they are environment friendly and fuel efficient.
BRR: How do you compare yourself with Daewoo in terms of efficiency?
WA: Frankly speaking there is no comparison when you look at customer comfort & safety and payback period for the operators. Volvo is highly fuel efficient besides having more seating and luggage capacity due to its height and 12.5M length and above all its useful life which is more than 10 years.
BRR: When you came to Pakistan, did you follow localisation regulations?
WA: We do not have an assembly line in Pakistan. CBU importers are not required to follow localisation regulations.
BRR: What are the specifications of your buses?
WA: The Volvo B11R has industry leading credentials to appeal to bus operators and passengers alike. It is powered by the tried and tested, fuel efficient 370 HP, D11A engine, which is married to Volvo's exclusive I-Shift, 12-speed automated mechanical transmission with 4 reverse gears. The absence of a clutch pedal enables automatic, seamless shifting through the gears, making driving easier and helping to reduce driver workload and fatigue. Driver comfort and more importantly, fuel efficiency is further enhanced by the Cruise Control feature enabling the vehicle to run at constant speeds. The B11R's streamlined coach work comes from Marcopolo, one of the world's largest bus and coach manufacturers with a global foot print. It is designed to seat 45 passengers in the lap of Super Soft seats. Seating is available in the 2x2 or 2x1 configuration, with a wide middle aisle to ensure ease of access and movement.
BRR: What is the cost of your bus compared to the existing buses? If it is higher, will it be commercially viable?
WA: Volvo buses offer the best return on investment and the lowest payback period. Volvo's strong branding with latest technology helps to achieve maximum occupancy, highest operational efficiency and premium fares. We feel that it's now time to propagate efficiency versus cost as the way forward rather than looking at the upfront price.
BRR: Who will be the buyer of these Volvo buses?
WA: To begin with, we feel that the organized fleet operators will be Volvo customers. Daewoo Express, the country's leading bus operator has already placed an order for ten Volvo B11R's buses, with the first bus expected to arrive in March this year. We have received overwhelming response after the Volvo Bus launch.
BRR: What about VPL's other segment of business?
WA: In trucks, VPL is the leading player in European segment. We sell close to 100 trucks a year mostly in the construction segment. We are the pioneers of BRT buses in Pakistan. We have recently secured Multan BRT after successfully executing Lahore and Rawalpindi Metro bus projects. We plan to launch Volvo BRT buses soon. We are closely working with the major players in the feeder routes projects of Punjab Government and expect to achieve decent market share. We have introduced Volvo excavator based pipe layer technology for the first time in Pakistan for the upcoming LNG projects. By virtue of our diversified product range we expect good business opportunities in the upcoming CPEC projects.
BRR: What are Volvo's plans in the next five year?
WA: With the development of road network, especially completion of Lahore-Karachi motorway we expect significant growth in the premium segment. We are hoping that by 2018 we should be selling 100- 200 Volvo buses, the number will multiply after 2018.
Currently we are focusing on Chinese buses for the Urban Public sector projects as per the market requirements. As the market develops, we also plan to launch Volvo Buses in urban and BRT segment.
BRR: Do you plan to have your own plant in Pakistan anytime in the future?
WA: We are working towards that; we are in deliberation with Marcopolo for some body plant assembly line here in Pakistan. But we need volumes for setting up a plant.
Comments
Comments are closed.