Landi Renzo (LR) Pak Ltd, has started manufacturing the components of CNG kits local in Pakistan to stabilise the prices of its kits in the wake of rising euro. The CEO, Landi Renzo Group, Stefano Landi said this to newsmen. The Director Sales, LR, Francesco Grillo and the Chief Executive LR, Mohsin Ali Khan were also present at the occasion.
Landi said that the LR started operations in Pakistan in July 2007, was assembling 10,000 of world class CNG kits per month. "We can take the localisation of components of these kits up to 70 percent in next three to five years, but we are not in a hurry", he added.
"We will increase localisation gradually to ensure that our CNG kits are at par with Italian standards", he noted. The CEO said the quality of engineering and auto industry in Pakistan was very high and this is the reason behind starting the local production of CNG kits locally.
Further, he said that Pakistan was an important market for his company as the country holds one of the leading CNG vehicles users in the world. The total sales of LR CNG kits was estimated at 30 million euros last year that also included the sale of locally assembled kits. Company's total worldwide sale of CNG kits was 164 million euros during this period, he added.
He said that the company also produces LPG kits, was the leader in CNG kit sales worldwide having a share of over 25 percent in the global market. LR CEO pointed out that Pakistani company has exported 1200 CNG kits to China and Myanmar in December 2007. The company has received more export orders from China and Myanmar, stated.
Having operations in 50 countries, LR wanted to expand CNG kit's production from 3 million in 2006 to 8 million in 2012. Responding to a question, Landi said his company could also start assembly/manufacture of LPG kits in Pakistan. Grillo said that major portion of CNG kits are purchased by the local auto assemblers in Pakistan and his company was importing 6000 kits for rickshaws in Pakistan to meet the rising demand in three-wheelers.