LML ancillary launches 3 wheeler 'SA'

JS Auto, an ancillary of LML, has sprung a surprise by launching a three-wheeler under the brand name "SA".

Most LML vendors in Kanpur closed down after LML stopped production in January this year; but a few took up the challenge, JS Auto being one.

The firm supplied equipment to LML worth Rs 75-80 lakh a year, but started planning for life without LML in 2004, when the parent company's future did not look bright. A three-wheeler was planned and launched, in February, immediately after LML stopped production.

Praveen Puri and Susheel Puri, the two brothers, learnt the ropes from their father and have continued on their own.

In the initial years after Partition, when Kanpur had become the hub of cycle makers, before the industry shifted to Ludhiana, the Puris were making cycle parts. In the middle of the 1960s they shifted to defence items and parts for Shaktiman trucks of the army.

"When, in 1982, LML, then Lohia Machines Ltd, started making scooters, we established a tie-up with them," said Praveen Puri, who looks after the factory, supplying about 150 items to LML, including mudguards and headlights. This relationship continued till this year. The sale to the parent company was worth Rs 90 lakh per annum.

"Besides LML we supplied to Hindustan Motors-contessa, and Telco, the load body for its truck, 407 D, and earned a turnover of about Rs 1 crore per annum," he said.

The launch of the three-wheeler was preceded by two years' research of the market and the product. The Puris found out that except Scooters India's Vikram, there was no other product that could compete with them.

Thus, marketing was no problem.

The new features included sliding seats, because the driver's seat of the Vikram and Mahindra was found to be "uncomfortable". The body was made sleek through aero-dynamic features.

Though it is a three-wheeler, car paint was used. It has been fitted with Omni headlights, increasing visibility and an in-built tape recorder has also been added.

For the chassis, hydraulic press has been used, which has reinforced it, a method which is not normally used by small manufactures, giving the vehicle a balance, which other competitor's lack, especially Mahindra with a rear engine, claims Puri.

The vehicle gives about 30 km to a litre; its loading capacity is 1,360 kg and its cubic capacity is 510 cc, which is common to all others.

The company launched its diesel version and Euro-2 compliant three-wheeler and sold 100 vehicles in the first three months. Now it has stepped up its production to 100 a month and by December it plans to sell about 300 a month.

It has launched its CNG version as well and about 100 CNG vehicles are on the road today. Its loader costs Rs 1.68 lakh and the passenger version costs Rs 1.73 lakh, all taxes included.

It has spread to various parts of UP, Bihar, Madhya Pradesh and Uttaranchal, and has established dealers in Kanpur, Allahabad, Agra, Varanasi and Patna. Including the one in Gwalior, it now has 25 dealers.

It proposes to reach a turnover of Rs 25-30 crore by March 2007. But it expects its turnover to reach Rs 100 crore by the end of 2007-08.

Thus, Kanpur has seen the birth of a three-wheeler unit from nowhere due to its environment and entrepreneurship. But this may be short-lived as JS Auto too is planning a migration to Uttaranchal.

"We have already taken land of 600 to 700 sq meters between Dehradun and Hardwar where we shall start assembly operation and shall continue it for two years, after which we shall start manufacturing in that facility, making a difference of Rs 15, 000 to Rs 20, 000 per vehicle and this is a substantial difference."

But the city has already raised a toast for JS Auto, that in adverse circumstances , it has through its innovative and competitive product, is set to become a major player in the three wheeler market of the country.

Says Puri, "It only shows that a small company with superior quality can overcome the challenge of a large company."