Sipradi Redefining Service

Setting up a large service centre and countrywide service network of its own, this vehicle dealer tries to differentiate its products also through services.

Thapa: "We've definitely set a trend"

Alongside focusing in increased sales, it is now time for the automobile dealers to invest in after sales services. That is the message one receives when looking at what Sipradi Trading (P) Ltd., a Soaltee Group company started recently. Set up with an investment of nearly Rs. 100 million, the company’s service centre at Naikap on the outskirts of the capital went into operation in June. Though the immediate business of the centre is after-sales service on the vehicles that Sipradi deals in, the company’s officials say that the centre is for more than that and is a profit centre in itself. "In fact after sales service is a product by itself", says Suneil Thapa, Vice President (Technical) of the company.

The dealer of TATA range of vehicles from India, Sipradi holds almost 95% of share of the market in the bus and truck vehicles and is one of the most prominent players in the personal vehicle market with TATA’s Indica brand of passenger car. In between are the pick-ups, MUV’s, SUV’s and other.

But the possibility to expand the unit sales is not so bright, says Thapa, citing at the growing congestion on the city-roads and highways. The solution to expand business in that situation is to harness the existing market, and for that the only way is to go for servicing the existing customers, he adds.

Right now, however, the problem of immediate decline in unit sales may not be there. Finding no alternate field attractive enough to invest into, people are going for vehicles - both commercial and personal. And with the range of products that it offers, Sipradi naturally becomes a place for the prospective investors to call on. And Sipradi, according to Thapa, is getting more consumer-focused and building relationship that is long-term one. "Buying our product means investing in us. We want the customer to be a customer for life".

With more than one hundred employees including 10 managers working, the Sipradi workshop looks like a factory and that is exactly what Thapa claims it to be. "Our work practices and systems can be compared with the best in industry", he claims. Built over an expanse of twenty ropanies of land, the outfit can boast of a service backbone similar to a 5-star category hotel. The vehicle checks into a computer network at the gate and thereafter all the details are recorded. The registration, billing and spare part and entire operations are automated using internally developed software. Complete engine rebuilding workshop, state of the art accident repair and paint workshop and every conceivable service equipment take care of all aspects of the automobile except the engine manufacturing itself. In all, the centre is more a factory than a service centre going by the existing standards in this sector in Nepal. The company even claims the centre to be the first of its kind in South East Asia. Having linked all its service centres in the country together through a computerised network, it can arrange for any spare-part needed within a day or two as long as it is available in any of the centres.

Other vehicle dealers have their service centres mainly in Kathmandu, and very rarely elsewhere. In this situation, the expansion of service centres outside the valley has made Sipradi ahead of other vehicle dealers. "We are already the best in this sector" adds Thapa "but the objective is to work towards total customer satisfaction in this field".

The company is running eight service centres across the country including in Pokhara, Birtamod, Birganj, Butwal, Itahari, Attaria and Nepalganj. But looking at the market requirement and the customer profile the outlets are still not enough. On many occasions, the customers have to depend on roadside garages, and it is particularly so for TATA trucks and buses.

"As the cost of repairs of trucks and buses directly impacts the earning, the owners of these vehicles are highly price sensitive towards cost of repairs and spares", explains Thapa "and this is where we face the toughest challenge, as our spares are more expensive due to genuineness, custom duties and overheads." Such competition of an organised sector company with the unorganised sector units has more than one aspect to it : The roadside garages have a very high flexibility apart from price - the working time, high credit, loose systems etc., whereas the organised sector company has no such flexibility.

Reading that Sipradi has also started providing training to the mechanics and owners of roadside garages and the owners as well as drivers of the vehicles. "We want our products serviced properly no matter who provides such services. We give back to our customers more than the differential cost through genuine spares, better quality of work, customer dealing and through workmanship and spares warranty," claims Thapa and informs that it is being understood and appreciated by the customers. "This can be seen by growing number of vehicles visiting our workshop for purposes ranging from simple servicing to engine overhauling." He further adds "In the end, it is the performance that a customer would measure against what he spends and that’s where we would like to make an impact". Sipradi’s scheme - Navjeevan - which rebuilds the engine as good as new at a very competitive price and comes with warranty similar to a new engine, is claimed to be a big success.

Going through the workshop, one also notices workforce with proper attire busy with repairwork. "In the end, it’s the people who reflect company’s performance" adds Thapa. "Sipradi’s remuneration are said to be parallel to that in Surya Tobacco Company, one of the best in the corporate sector. "We at Sipradi also have performance based growth. Incentive which is linked to productivity and quality plays a major role in ensuring employee motivation and customer satisfaction", Thapa further adds. To keep in tune with advancement in technology, the company has its own training cell which also ensures proper employee update and regular training at Telco, the owner of TATA brand, to further add value to the quality of diagnosis and repairs.

Thapa’s bottomline : " We have definitely set a trend in this sector".