Premier gears up to make a commercial comeback

MUMBAI: Maitreya ''Mittu'' Doshi was the first off the block when the automobile sector was liberalised in the early nineties.
His firm, Premier Automobiles -- makers of Mumbai''s ubiquitous Fiat taxi -- managed to bag two auto giants, Peugeot and Fiat as partners. But as quickly as it began, the Mr Doshi''s dream drive ended.
Prolonged labour disputes, Peugeot''s decision to exit India and Fiat''s buy out of Premier''s Kurla plant put a brake on Premier''s auto dreams.PAL Peugeot, the joint venture with the French carmaker ended up in serious financial trouble and the company is presently under the control of the court receiver.
From being splashed in the pink papers in the nineties, Doshi could only be seen as a weekly columnist for a city tabloid once the millennium rolled around. But that may not be the case for much longer.
Based on Mitsubishi designs and fitted with Peugeot diesel engines, Premier Auto is launching a commercial van and a pick-up in September this year. The company said it has already showcased the product to dealers and financiers and is presently in the process of putting together a new dealer network as well as manufacturing facilities.
"We are a very small player now and we wish to keep it that way. Just let the products to speak for themselves," said Atul Akolkar, marketing head of the new project.
"We do not have the resources to take on the mighty and hence we intend to target a niche market, with a niche product".
The project will be funded out of internal accruals as well bank financing and the company is already talking to several banks for a line of credit.
During the past two-and-a-half years spent in corporate oblivion, Premier says it has studied the market, analysed its own strengths, dipped on its own decades of experience and evaluated its past mistakes to come up with a blue print, which it feels will spell success.
The company is planning to launch its products in a phased manner, concentrating in specific markets before venturing into newer areas. The vehicles, which will largely be for the commercial markets, will be manufactured at a new facility at the company''s Chinchwad plant near Pune.
The plant presently houses the company''s machinery manufacturing unit. The operations will be along the presently accepted global lines of working on low manpower and concentrating on assembly operations with spares being sourced from international suppliers.
"We are the last entrant in the market hence we have the advantage of evaluating the market fully before taking the first step," Akolkar said.