SML ISUZU Ltd

SML ISUZU Ltd

Incorporated in Jul.'83 as Swaraj Vehicles Swaraj Mazda (SML) got its present name in 1984. It has been jointly promoted by Punjab Tractors (PTL) in India and Mazda Motor Corporation & Sumitomo Croporation in Japan. The company came out with a public issue in May '85 to part-finance its projects. In October 2004 SML's Technical Assistance Agreement with Maza ended. Subsequently on 18th August 2005 Maza sold to Sumitomo Corporation Japan its entire holding in SML of 1638000 equity shares representing 15.62% of the equity capital of SML. Thus Sumitomo Corporation's equity holdings in the company has gone up to 41.03%. Also in the end of June 2005 PTL has sold to Sumitomo 1573000 equity shares of SML out of PTL's equity holding of 3045000 shares in SML.During the year 2004-05 SML's market share in the comparable 5 to 10 Ton GVW range (market size 103000 vehicles) was 12%. However SML's market share in the comparable passenger segment was higher at 19%.SML's plant location is at Nawanshahar in Punjab.Starting from 2-wheel bases its model range now spans 5-wheel bases. Carrying capacities have spread from 3.0 ton to 6.0 ton in the goods segment (GVW 5.8 to 8.8 ton) and from 12 to 41 seaters in the passenger segment. The company has also the distinction of producing India's first factory finished buses. In recent years Swaraj Mazda has successfully introduced India's first 4-wheel drive LCVs and CNG mini-buses. Current variety of specialty vehicles include Police Vans Ambulances (2 stretchers/4 stretchers) Dental Vans WaterTankers Fire Tenders Dumper Placers Bottle Carriers etc. On the basis of design features and performance over the years its buses ambulances and specialty vehicles have acquired a distinct custorner image and preference. In the year 2005 based on its R&D efforts and guidance from Madza 3 more wheel bases has been added of 2.8m 3.9m and 4.7m.The GVW range has been raised to 9.8 Ton. Thus SML's current range of 5.8-9.8 Ton GVW has 6 distinct models with several variants. Also in the passenger segment from the orginal 26 seater version SML models is of 12-41 seat range. In 4 wheel drive vehicles CNG vehicles and Airbrake versionshas also be developed through SML's own efforts. It has achieved Bharat Stage III compliance (equal to Euro III) raising in the process the power of the engine from 80 to 100 bhp.It was declared a sick company in 1994 and was handed out a BIFR package in financial rehabilitation in 1995. This programme addressed every aspect of marketing & servicing quality of internal manufacturing and employee's productivity plus faster localisation and better buying. With this focus and improved market performance backed up by cost controls and support from the joint venture partners the company was able to wipe off losses by March 1998 4 years ahead of BIFR commitments. In line with Punjab Tractors' philosophy SMLs focus too has been on providing quality products with distinctive features at reasonable prices. The effort has been to build and nurture relationship with the customers by rendering better than the best service. Its dealer outreach has grown to 135 (55 in 1986). In addition it has 10 offices through out the country to support and monitor a net work of 130 dealers and 55 Service Centres.The company has absorbed Advanced Japanese Technology both through in-house activity as well as through vendors and its products are in the last stages of indigenisation. In the context of emerging demand momentum and company's growth plans the company is in an advanced stage of firming up its capacity expansion programme. The stake of 23.49% in Pubjab Tractors Ltd which was held by PSIDC was entirely picked by CDC Financial Services(Mauritius) Ltd at a consideration of Rs.153 per share. As per SEBI guidelines CDCFS & CDC-PTL made an public offer to buy another 20% of SML paid up equity of 20.97340 shares @ Rs.140 per share. This offer would be in exist from 18.09.2003 to 17.10.2003.During the year 2003-04 for the expansion of the annual capacity to 36000 vehicles the company has been setting up of manufacturing facilities for transmission gears and for manufacture of bus bodies cargo boxes in addition to tooling needs for localisation of sheet metal components and R&D resources for accelerating product development and meeting emission norms. The total estimated outlays for the project was Rs 160 crores .