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Special Report

January 28, 2009
 

Pirani Engineering starts Engine production in Pakistan

PIRANI ENGINEERING STARTS ENGINE PRODUCTION IN PAKISTAN
 

H

aji Mohammad Younus Pirani, Chairman, Pirani Group of Companies disclosed that according to plan during this year a new Tractor will go into production stage at our Hyderabad plant. We have sought Chinese collaboration for Van production in Pakistan. We have achieved 87 percent localization in manufacturing of motorcycle parts. Initially we were manufacturing these parts for our own product “Super Power” motorcycles but now with the grace of Allah we are selling these parts in open market and to other local assemblers. We have planned to manufacture 400,000 motorcycle engines in year 2009. This effort will make Pakistan self sufficient in motorcycle engine manufacturing and help saving precious foreign exchange for the government by bringing down the engine import to zero.

“Pirani Engineering is basically a vendor company which has started providing auto parts and engines to all local assemblers from January 2009. Our present production of motorcycle engines is 1,000 numbers per day, which was previously 400 to 800. There is one other manufacturer of such engines in Pakistan but they make it for their own use while we have opened it for all assemblers. Hence we are first and the only manufacturers within the country in this regard. More than 800 workers are employed at our Hub, Balochistan manufacturing plant. We believe in good quality production and following international manufacturing standards,” the Chairman Pirani Group added.



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In an exclusive interview with MOBILE WORLD Haji Mohammad Younus Pirani, Chairman and Kashan Pirani, Director Pirani Group of Companies informed that this is the first manufacturing plant of Chinese origin motorcycles in Pakistan which is producing all sorts of bike parts on mass scale.

The plant located at Hub Industrial Estate, Balochistan, is not only fulfilling our own requirements but providing auto parts to other assemblers of Chinese brand of motorcycles too. We have Certified Quality Management System ISO 9001:2000. The plant has four different departments; its Sheet Metal Department is manufacturing various parts of auto rickshaw and motorcycles including; Fuel tanks, Chassis frame, Front & Rear Fenders for motorcycle and Rickshaw Chassis’ Upper Show, Side Panel, and Front Show etc. its raw material sheets are imported by themselves as per international standards.

The department has more than 35 press machines which range from the operating capacity of 50 tons to 600 tons, along with Shearing machine/ Decoiler and Straightener facility.

Die-Casting Division is involved in casting of Aluminum auto parts for engine like Crank Case (left and right), Crank Case Cover (left and right), Hub (rear & front), Pitch assembly and Levers. It has machines for casting range of 120 metric ton to 850 metric ton with a capacity of 400,000 engine production per annum. Since last year it has started production of motorcycle engines locally which facilitated not only the local assemblers of Chinese motorcycles but playing a great role in saving of precious Foreign Exchange for the government.

They further stated that a separate CNC Department was established with latest state-of-the-art equipment for machining and testing of die casting parts through computerized automatic system. The testing is done through X-ray machines. We are the first Company in Pakistan which is using X-ray machine for this purpose that scans all aluminum engine parts exclusively.

We have also CMM (Coordinate Measuring Machine) for quality checking, digital leak testing, roughness tester, accurate measurement of engine parts, and tool master to check the height and profile of the tools.

Another Plant is working for Shock-Absorbers assembling of both the categories i.e. Motorbikes and Rickshaws. The shock absorbers produced are the front and rear assemblies. The technology used in manufacturing the shock absorbers is one of the most advanced in the motorbikes and three-wheelers industry.

Replying to various queries Haji Mohammad Younus Pirani said; Super Power motorcycle has three ranges of 70cc, 100cc, and 125cc, being produced in Pakistan since last three years. We have capacity of producing 300 motor bikes per day or 9,000 per month in a single shift. But due to economic crises at the moment we are manufacturing 4,500 to 5,500 bikes per month.

He further stated; “We were producing 50 auto rickshaws per day for President’s Rozgar scheme that was started by government through National Bank of Pakistan. But it was suddenly closed down by present regime without any prior intimation which caused huge loss to industry. And now production is reduced to 4 to 5 rickshaw per day only. If government takes some interest and provides assistance to this segment we can export large quantity of auto rickshaw from Pakistan. We have a better quality and price of auto rickshaw compared with Indian brand of Bajaj which is already being exported worldwide.”

Chairman Pirani Group disclosed; “We had exported 12 rickshaws to Bangladesh, which earned another order of 48 rickshaws, while exploration of motorcycle market is also in the process. 12 more rickshaw samples are being prepared for Sri Lanka market. We had participated in local exhibition of Sri Lanka and our rickshaw was very much appreciated.”

Kashan Pirani, Director, Pirani Group added that another sample of 12 rickshaws was dispatched to Dubai since Dubai is a re-exporting centre. We are also working on Sudan and some other African countries for rickshaw export. If any individual party was interested to import in Saudi Arabia we are ready to negotiate.

To another question Kashan Pirani said; “So far we have no incentives from government for promotion and exploration of motorcycle and auto rickshaw export markets. If we get rebate, basic infrastructure facilities and concessional rate of utilities like electricity and gas including tax exemptions then we could be in a better position to compete international market. This could be a major source of earning Foreign Exchange for the country; while on the other hand further employment opportunities within the country would be created.

Kashan disclosed that there is demand of about 4,000 auto rickshaw per month in Sri Lanka and another four to five thousand rickshaws are required in Bangladesh each month. Similarly, in African countries there is great potential for motorcycle and auto rickshaw exports and we have enough production capacity to meet those demands if government takes interest and gives rebate and other incentives in this regard.

Government should also extend its support for local promotion of auto industry through schemes like President’s Rozgar scheme. But it is amazing that present government promised to replace it through its own Peoples’ Rozgar Scheme for which a new agreement was signed with us and other automotive manufacturers, they got bank guarantees of Rs10 million about three months back. But we are still waiting for its implementation. It was all done through National Bank of Pakistan but since last three months the bank authorities are giving no response, which is ridiculous. This situation has badly affected the local manufacturing process and promoted unemployment in the country, Director, Pirani Group said.

The closure of President’s Rozgar scheme in August 2008 was very abrupt for which we were not intimated, hence it blocked our huge investments and later we were compelled to lay off large number of labors from our factories. Most of the vendor industries were closed due to this reversal. Various new investors were discouraged. About 8,000 auto rickshaws were provided by our company among others in that scheme which totaled 30,000 rickshaws in addition to other three wheelers and it was continued hardly for one year, he added.

In our opinion, there should be a clear National Auto Policy announced by government. EDB has helped us in import of zero rated iron sheets and other raw materials while we pay 16 percent sales tax and 1 percent CED on all imports. We had planned to get further expansion in this field through installation of Wheel Rims and Carburetor manufacturing plants but due to current economic crises and slump in local sales from government side both plans are shelved for the time being.

We are also interested to manufacture four wheelers like cars, trucks, vans and tractors within the country. But under present circumstances this could not materialize. We have a joint venture with Turkish company for tractor manufacturing in the name of Euro Ford Tractor is already signed by us.

-Published on page# 8 & 9 in January-2009 issue of MOBILE WORLD Magazine





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