Pragoti's Pajero Sport jeep sees good demand

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Pankaj Dastider
CHITTAGONG, December 28: Boosted by increased production, sales and profit for the last few years, Pragoti Industries Ltd now expects to launch assembling of Sedan car with cooperation of the Japnese Mitsubishi Motors Corporation by the end of 2013.
Company sources said that talks with Mitsubishi Motors Corporation to assemble Sedan car is progressing. Hopefully, Pragoti will be assembling and marketing this 'costly and aristocratic' car in the local market by the fourth quarter of next calendar year, a senior official of the plant said.
A team of high officials comprising those from the Industries Ministry, BSEC (Bangladesh Steel and Engineering Corporation) and Pragoti Industries Ltd (PIL) is expected to visit the Mitsubishi's Thailand Plant in January next and discuss related issues with the Japanese company, officials said.
The new model Sedan car will be assembled at the Pragoti factory at Barabkunda under Sitakunda upazila of Chittagong under joint venture with Mitsubishi Motors Corporation of Japan, the PIL sources said.
"Sedan car is highly aristocratic and more costly than other versions but there is a good demand for the car in the local market," said the plant official requesting not be named.
Sources said that top officials of Mitsubishi Motors including its sales representative in Bangladesh agreed to extend full support to the PIL for assembling Pajero Sport Jeep and Sedan car at the PIL factory during visit of a four member team of the world famous car manufacturer from Japan in the middle of July 2009.
Data showed that the PIL, which started commercial production of Pajero Sport Jeep in August 2011, has sold out around 210 units of the sophisticated CR45 brand till December 2012. The sale of CR45 model jeep in the last fiscal year was 152.
Pragoti started assembling Pajero Sport Jeep CR45 for the local buyers following a five-year agreement between the PIL and Mitsubishi Motors Corporation on July 8, 2010, company sources said.
Engineer AKM Solayman Hoque, Managing Director of Pragoti Industries Ltd, the lone state run vehicle manufacturer under BSEC, said the company saw both enhanced production and sale of Pajero Sport Jeep in the first year of its assembling the brand.
"Almost all government bodies including the ministry, government and semi government offices, departments and directorates have purchased vehicles including the CR45 model jeep from the PIL during the tenure of the present government," he told the FE Thursday.
Price of this jeep was around Tk 7.65 million which is almost half the price of a similar jeep imported, for which the demand for Pajero Sport Jeep is increasing, he said.
The company is trying to earn more profit and contribute more to the country's economy, he said adding that the factory, since its inception in 1972, has assembled and marketed over 50,000 vehicles including cars, jeeps, trucks, buses, minibuses, pick-ups, tractors and ambulances.
It could have sold increased number of vehicles had it resumed sales of buses, trucks, jeeps and minibuses through their appointed dealers numbering around 32 throughout the country.
The parliamentary standing committee for the Ministry of Industries stopped marketing of Pragoti vehicles through dealers in May 2012, concerned sources said. In the year 2011-12 the PIL's actual production of different types of vehicles was 844 units. Of them, 415 units were of Pajero Jeep V31 model, 166 units of Pajero Sport Jeep CR45 model and the rest were of other types. Total production of vehicles in the factory was 808 units in 2010-11.
In the same year the company sold out a total of 735 vehicles. The managing director said they assemble the jeeps and cars on the basis of purchase orders from the buyers. If they get more orders the plant will be able to double their production, he added.
They have emphasised on the production of CR-45 model jeep from as the Mitsubishi Motors Corporation has decided to stop marketing of V-31 model jeep from March 2013, he said
Pragoti earned a net profit of Tk. 369.90 millions in fiscal year 2011-12, up from Tk 315 million in 2010-11. PIL's annual turnover in fiscal 2010-11 was Tk 2.46 billion and it contributed Tk 1.4122 billion to the national exchequer in the same year. In 2011-12, the annual turnover increased to Tk. 2.9834 billion and when it paid Tk 1.6203 billion to the national exchequer, he said and added that the company has been earning net profit since 2007.
Pragoti factory assembles and markets two types of Pajero - Model V-31 and CR-45, the latter being the successor of the earlier. The company can offer vehicles at cheaper price, because it assembles them by procuring CKD (completely knocked down) kits from overseas.