Customer
One of the largest Auto OEM with presence in commercial and passenger vehicles markets
Problem
- Huge octroi duty liability and complicated documentation
- Handling and transportation of pickup cabs and trays
Cause
The two automobile giants formed an alliance to create synergies and boost their market share. They agreed to use the idle capacity of a paint shop at one partner’s Mumbai plant for vehicle bodies made by the other partner in Pune. The province of Maharashtra was under Octroi Rules (now defunct law) and any material movement from one city to another meant payment of huge octroi duties. Additionally, handling and transportation of pickup cabs and trays also was becoming a challenge.
KGC’s Approach
Special Exemption
KGC solved the octroi duty problem by getting a special exemption from Mumbai’s local administration and paid a nominal deposit amount as guarantee
Customized Equipment
Dedicated flat-bed trailers with mounts for the cabs and trays were developed for safe transportation and easy loading and unloading
Documentation Management
KGC managed all the complex documentation for each load at the Octroi check-posts as well as the weekly reconciliation
Outcome
- Production increased with the growth in market share
- Operation began with 20 vehicles moving between the two cities every day and soon went up to 100 vehicles per day
- Additional 150 vehicles were added to carry passenger car body
