Home Trucks & Buses Hinopak Celebrates 20th Anniversary

Hinopak Celebrates 20th Anniversary

Hinopak Motors Limited was formed in 1985 as a joint venture between Hino Motors, Ltd, Toyota Tsusho Corporation, Japan, AI-Futtaim Industries of UAE & PACO with the objective of progressively assembling and marketing world renowned Hino vehicles in Pakistan.

Under the leadership of first CEO S.M.A. Salar the company started its operation on 1st February 1986 as the only assembler of commercial vehicles in Pakistan with its own Assembly Plant (AOP) and Body Operation Plant (BOP) which helped in meeting needs of customers by supplying diverse range of bus and truck bodies.

Since its inception the company has been a model industrial unit which enjoys exemplary relationship between the management and CBA workers union. Hinopak’s CBA workers’ union has always played a positive role in Hinopak’s progress.

The untiring efforts of the management, workers and CBA Union resulted in Hinopak soon becoming the leader in the commercial vehicles market both in term of sales, production volume, quality and technologically advanced products. In its early years, Hinopak not only made considerable gains in the commercial and private sector but also made major breakthrough in the government sector as well as with large orders for supply of complete buses.

Exploring Opportunities

Recognizing the need to offer better service to customers the company established its own offices in in all major cities of Pakistan as well as a comprehensive network of sales, service and parts dealers.

In 1989 Shah Jalil Alam, then company’s Director Marketing was appointed by AI-Futtaim Industries as the next CEO.

This period also saw Hinopak making great strides in local sales as well as first bulk export of buses from Pakistan. Company owned mobile workshop were also introduced for better customer support. The company also received recognition on various fronts for its performance and management practices.

This period also saw the launch of the Prime Minister’s Yellow Cab Scheme which resulted in creation of tremendous demand for trucks and buses. Hinopak responded to meet this new challenge by upgrading and increasing its production capabilities.

It was during this period that the company achieved its highest sales of Hino chassis of 3,525 units in 1993. However, the sudden termination of the yellow cab scheme left the company holding large stock of inventory with no buyers. As a result the next few years were very hard for the company

Expanding Horizons

In 1995 Hasan Irshad, then Finance Director was appointed by AI-Futtaim as company’s new Managing Director & CEO. In 1996 PACO decided to disinvest from Hinopak. Shareholding of remaining partners was thus increased with AI-Futtaim now holding majority shares.

It was during this time that the company successfully initiated and completed formalities for obtaining ISO 9000 certification of its quality systems becoming first Pakistani Automotive company to do so. The company also became the first commercial vehicle assembler to introduce the concept of 3-S dealerships with the inauguration of Hino Karachi in 1997 thus providing its customers sales, service and spares facilities under one roof.

Embracing Challenges

In 1998 AI-Futtaim Industries decided to withdraw from Hinopak and HINO MOTORS, LTD. and TOYOTA TSUSHO CORPORATION acquired their stakeholding in the company with H1NO MOTORS, LTD. as the majority shareholder.

Hino Motors, Ltd. appointed Kunwar Idris as the new Chairman and M. Okamura as the new Manaing Director and CEO of Hinopak Motors Limited, with the responsibility to guide the company through the testing times that followed. The new management set about reorganizing the company with major emphasis on cost cutting, better services and offering superior products to the customer.

The company also laid great emphasis on customer service with the concept of offering service from the bottom of heart “Kokoro”, as well as holding of free service camps even in the remotest of areas.

It was the result of these efforts that the company was turned around from making losses of over Rs. 20 million per month to break even with a few  months of M. Okamura’s taking over as Managing Director & CEO.

The company also become the first automotive company in Pakistan and second Hino affiliate worldwide to receive ISO14000 certification for its Environment Management System.

Developing Value

The company became the pioneer and largest supplier of buses under the Urban Transport Scheme. The company has supplied over thirteen hundred buses which are successfully plying in various cities of the country.

Promoting Excellence

In 2001, H. Chikahiro replaced M. Okamura as he CEO of Hinopak and the company once again witnessed the glorious days of early 1990s.

Not only was the company able to wipe out accumulated losses of over 450 million rupees it also recorded its largest turnover and profit in 2003 and sucessfully completed well within time the largest order in its history, the supply of over 1600 cargo trucks to the Government of Pakistan. It was during this period that huge new investments in production facilities were also made which have not only improved production capacity and product quality, but also the working conditions of the workforce. During this period Hinopak also received order for the supply of frame and decks from Indus Motors for their Toyota Hilux pick-ups.

Partnering Progress

Now under the able leadership of K. Maeda who replaced H. Chikahiro in 2004, the company is ready to meet the challenges the future market has to offer.

They have already produced Pakistan’s first ever locally made CNG bus and are currently working on introduction of rear engine luxury buses in Pakistan, with air suspensions and Hino’s popular light commercial model Dutro.

Hinopak has also helped in strengthening the bonds of Pak-Afghan friendship when it successfully completed the supply of 110 buses to Government of Pakistan, which were gifted to Government of Afghanistan.

Hinopak has recently joined hands with other major companies in Pakistan to sign Global Compact Principles, which calls on the businesses to help build the social and environmental framework. Last few years have seen the company progressively achieving its highest sales turnover. The company also achieved its highest bus & other bodies sales of over 1,500 units in 2004.

Envisioning the Future

Hinopak has always strived to contribute to promote sporting activities within and outside the company. Hinopak Inter Firms Cricket Trophy which began in 1989 is one of the most sought after tournament of Karachi. They have also sponsored many sporting events in golf, football, hockey and polo. Hinopak has also contributed to social causes by active participation and has recently donated mobile eye clinic to President General Musharraf, as well as donation of cargo truck to the President’s Relief Fund for Earthquake Victims-2005.              -Staff Correspondent

-Published on pages# 20-21-22 February-2006 edition of MOBILE WORLD Magazine

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