The Hindu : IMPAL exploring new avenues

Online edition of India's National Newspaper
Friday, Aug 22, 2003

Business

Business

IMPAL exploring new avenues

By Our Special Correspondent

CHENNAI AUG. 21. India Motor Parts & Accessories Ltd. (IMPAL), a TVS Group company, has set its sights on new opportunities in the emerging cost-competitive environment even while laying much store by its stated objective of excelling it what it does by being an efficient and low cost player.

Outlining the game plan of IMPAL in the new unfolding situation, Chairman S. Narayanan and Managing Director N. Krishnan are aware that road ahead will be tough what with many a vehicle maker preferring to dabble in spare parts business as well. Yet, they are confident that there is space for `independent jobbers' like IMPAL.

Perhaps the largest distributor of spare parts in the country, IMPAL obviously derives its strength by distributing spares for all sorts of vehicles through carefully crafted associations with organised players in the Indian auto component sector and selling branded items.

Nonetheless, competitive pressures are indeed forcing IMPAL like firms to scout for newer avenues. The TVS firm has just signed up a distribution agreement with Pricol for hawking the latter's vehicle security system, Xenos. Similarly, it has tied up with, Fenner for distributing its fan belts. It is likely that IMPAL will get into accessories distribution in a major way. According to Mr. Narayanan and Mr. Krishnan IMPAL will look at assorted options to diversify its business, cashing in on the company's core distribution and network strength. Nonetheless, they are clear that any foray into newer avenues will have to make `synergistic' sense.

Mr. Krishnan feels that the big challenge before the company in the coming days will be efficient provision of spare parts at affordable price. Not surprisingly, IMPAL is proposing to go the technology way. It has enlisted the help of Covansys, an IT company, to provide a network that connects its branches online. The objective is to pare inventory. This retail transaction system is expected to be fully in place before September. It is a fully integrated, web-enabled and multi-location application with robust security, user definable set-up, easy to use features and the like. This can be upgraded to provide B2B solution. The system will enable IMPAL keep a productive relationship with vendors and buyers to enhance their purchase experience.

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