James Morgan looks at the arrival of Pacific Machinery: a FAMCO subsidiary offering reliable, competitively priced vehicles from China and India
Dubai-based machinery distributor FAMCO has launched a new subsidiary in the UAE. Pacific Machinery will supply Eastern-manufactured products in a bid to reach new segments of a resurgent regional market.
The new distributor will offer wheel loaders produced by Chinese manufacturer SDLG, and trucks and buses from India-based Eicher. Unusually, however, Pacific Machinery promises that despite the alluring price tags of its products, after-sales support will be comparable to that associated with brands whose reputation is well established in the region.
Speaking at the event, FAMCO managing director Paul Floyd said: “The launch of this new business creates a clear distinction in terms of the way that we want to reach out to the market, to reach out to different types of customer, and to provide equipment for different types of application.
“On the other hand, Pacific Machinery is going to be different,” he continued. “How will it be different, exactly? Pacific Machinery will be about simple technology products; low-cost products but nevertheless, reliable products.”
Pacific Machinery contends that its high-quality customer support will distinguish it from its competitors.
“Very often with products at this end of the market, you don’t get that,” explained Floyd. “That’s the big differentiator for us. We want to be the best in this segment, and I think we have the capability to do that.”
Also speaking at the launch were representatives from SDLG and Eicher. Both were keen to point out that a philosophy of frugal manufacturing should not be taken as an indication of inferior quality.
“SDLG will be a powerful partner for customers throughout the Middle East,” said Per Andersson speaking on behalf of the Chinese manufacturer. “Here in UAE, we have a clear aim to be the number-one Chinese brand, and to be recognised as the best Chinese brand in terms of after-sales operations.”
Representing Eicher, VE Commercial Vehicles’ Arun Kumar Birla claimed that the company’s Indian heritage bodes well for performance.
“We are best in class as far as fuel efficiency is concerned,” he told the audience. “In India, of course, the cost of fuel accounts for almost half of the operation of a truck. If you are 10% better, you can imagine what it can do for your profitability. These trucks are reliable and durable because they are designed to a good standard – for the rough and tough conditions of India.”
Solid Foundations
Whilst Pacific Machinery might be a relatively new name when it comes to UAE distributors, as a FAMCO subsidiary, the company enjoys a strong heritage. Indeed, one of the unique selling points of Pacific Machinery is the strength of the FAMCO brand.
“FAMCO has been established for many, many years as a distributor of well-known, tier-one products,” explained Ahmad Halwani, general manager of FAMCO’s Construction Equipment Division. “We know the market inside out. Although everybody recognises that the brands carried by FAMCO are prime products, some segments of the market are very price conscious.
Not everybody can afford traditional FAMCO products. Essentially, these customers are looking for something a little less expensive.
“Unfortunately, the products traditionally offered on the market in this price range do not tend to have the reliability or service support that people are looking for,” he continued. “It is within this context that Pacific Machinery offers a new solution in the marketplace. We can supply reliable, efficient, cost-effective machinery with very good levels of aftermarket support.”
This situation, however, was not easy to engineer. In order to strike the optimal balance between value for money and reliability, Pacific Machinery had to search long and hard for the right manufacturers.
“Neither FAMCO nor Pacific Machinery is a brand collector,” Halwani concluded. “Hundreds of new brands pop up every day across the world. For us, it’s a totally different thing. Before we decide to partner with a manufacturer, we take time to ensure that they are the correct partner with a high level of customer support.
We will make every effort to successfully introduce their products into the marketplace, but only once we are confident that they will work. Both FAMCO and Pacific Machinery are confident that SDLG and Eicher products are of sufficiently high quality. They will not disappoint.”
Launch Reaction
After hearing from the speakers, PMV took to the floor to get face time with some of the main driving forces behind this new venture. All concerned seemed confident that in collaboration with its Eastern partners, Pacific Machinery could offer something special for UAE customers: genuine value for money.
“Pacific Machinery and its partners are introducing high-quality, reliable machinery to the UAE market, but at good prices. We feel that the combination between quality and price will prove very interesting to customers. We are confident that this venture is going to be a success.”
Ahmad Halwani, general manager of FAMCO’s Construction Equipment Division
“SDLG has more than four decades of production experience, of course, mainly in the Chinese market. China is the biggest wheel loader market in the world, and represented almost half of the global market during the peak years. SDLG is very strong and well known as one of the main suppliers of wheel loaders in China.”
Per Andersson, responsible for SDLG’s sales and marketing in the Middle East
“In 2008, AB Volvo and Eicher formed a joint-venture company named VE Commercial Vehicles. This company is now synergising the distribution network of the Eicher brand. FAMCO has enjoyed a very good relationship with Volvo for many years, and will also have connections to Eicher’s sales and servicing in the UAE through Pacific Machinery.”
Arun Kumar Birla, executive vice president of sales, marketing and aftermarket for Trucks, Buses & Engine at VE Commercial Vehicles
“In terms of quality, the products on offer here are very good. Of course, they are relatively new products in this region so we have to market them accordingly. Fortunately, we are already distributing SDLG and Eicher machinery in the UAE and our customers are extremely happy; they are getting value for money. Moreover, Pacific Machinery is a subsidiary of FAMCO, so people understand that the standard of service will be very high. Everybody seems completely satisfied with our image and the services that we are providing.”
Farhat H Chaudhary, national aftermarket sales manager for FAMCO’s Truck & Bus Division
What’s available
Pacific Machinery’s starting lineup will consist of two SDLG wheel loaders and a selection of Eicher trucks and buses. Here are some of the technical specifications of what’s on offer:
SDLG
– LG958L five-tonne wheel loader
– Maximum torque: 843Nm
– Rated power: 162kW
– Maximum engine speed: 2,200rpm
– Rated load: 5,000kg
– Rated bucket capacity: 3m3
– LG968 six-tonne wheel loader
– Maximum torque: 920Nm
– Rated power: 170kW
– Maximum engine speed: 2,200rpm
– Rated load: 6,000kg
– Rated bucket capacity: 3.5m3 (3.0 – 4.2m3)
Eicher
– 10.60G truck
– Wheel base: 3,350mm, 3,760mm
– Minimum ground clearance: 210mm
– Payload: 3,500kg
– Maximum power: 61KW at 3,200rpm
– Maximum torque: 206Nm at 1,800 – 2,100rpm
– Eicher 10.70 truck
– Wheel base: 3,515mm, 3,765mm
– Minimum ground clearance: 210mm
– Payload: 4,500kg
– Maximum power: 115hp at 3,200rpm
– Maximum torque: 330Nm at 1,800rpm
Skyline Executive bus
– Wheel base: 4,265mm
– Minimum turning circle: 48.6m
– Gradeability: 35%
– Maximum power: 115hp at 2,800rpm
– Maximum torque: 400Nm at 1,400 – 1,600rpm