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PIAGGIO VEHICLES
PRIVATE LIMITED

Piaggio, one of the world's largest producers

of two-wheeler, revolutionised the global industry
with its well-renowned brand Vesta.

Global overview of Piaggio

Piaggio originated more than 120 years back in

1884 in Pontedera (Pisa, Italy) when its founder
Rinaldo Piaggio expanded his family woodshop into
a sawmill and started making wooden fittings and
furniture for ships. In 1906 the company went on
to add railway cars, cars, trucks, trams, motor boats scooters, motorcycles and mopeds in the 50cc
and airplanes to its product mix. But after World to over 1,000cc range and comprises the Piaggio,
War II, the company lost most of its manufacturing Vesta, Gilera, Derbi, Aprilia, Guzzi and Scarabeo
plants due to bombings. In the late 1940s, seeing brands. It also manufactures three-wheeled and
the potential for cheap transportation in Italy, the four-wheeled light transportation vehicles under
company launched its two-wheeler under the the (LTV) ape', Porter and Quargo ranges.
brand name Vesta.Vesta not only became a hit in
Italy, but also went on to sell in more than 100 Globally the Group has five R & D centres and is
countries by the 1960s and revolutionised the two- currently present in more than 50 countries with
wheeler industry across the globe. an employee base of around 6,500 people. For the
year ending December 2005, it achieved sales of
Today the Piaggio Group is one of the world's top Euro 14.6 billion, a 16.3 per cent growth over the
manufacturers of two-wheeler. It acquired the previous year.The Group was family run almost
Aprilia Group in December 2004 bringing the continuously since its 1884 founding. It went public
Aprilia brand of motorcycles under its fold.With on the Milan stock exchange in 2006. Immsi S.p.A.,
this acquisition, Piaggio became one of the world's an industrial and services holding company, listed
top four players in the two-wheeler business, with on the Milan Stock Exchange, controls the Group
consolidated leadership in the European two- with 56.188 per cent stake. Mr. Roberto Colaninno,
wheeler market. Its product portfolio includes Chairman and Chief Executive Officer of the

Company Mode of presence in India Year of entry Key business

Piaggio Vehicles 100 per cent subsidiary 1998 Automotive

Private Limited

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Piaggio Group also heads Immsi S.p.A.The

company's shares were admitted for trading on
Borsa Italiana's automated trading system, Milan
Mercato Telematico in July 2006.

Piaggio in India

Piaggio entered India in 1998 through a joint

venture with Greaves Limited to manufacture
three-wheeler. Piaggio had a majority stake of
51 per cent in this joint venture.Three years later
in August 2001, Piaggio went on to acquire the
49 per cent holding of Greaves Limited and the
company, Piaggio Vehicles Private Limited (PVPL),
became a 100 per cent subsidiary of Piaggio SpA. grown to a scale where it manufactures 500
Since then the company has achieved phenomenal vehicles in a day.The company has successfully
growth in its revenues - an average growth of more utilised Pune as a strategic hub for its marketing
than 40 per cent has been realised, year on year. and sales network, which has grown to over 240
The Indian operations, ably spearheaded by Ravi dealer locations providing 420 outlets for sales and
Chopra, Chairman and Managing Director, have service across the country.The company employs
today become a key focus area and a significant around 1,200 people in India. It has seven regional
destination for the Group's overall business. offices and fourteen branch offices all over the
country.This is perhaps one of the largest and
The company has its state-of-the-art plant at best-organised distribution networks for three-
Baramati (Maharashtra), with a fully automated wheeler in India.
conveyor line production facility, computerised
paint shops and advanced R & D facilities.Way back In the last few years, PVPL has emerged as the
in 1999, the company had started its production second largest three-wheeler manufacturer in India.
activities with only 40 vehicles per day.Today it has With an overall market share of 33 per cent, the

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Its remarkable growth and achievements today are

the result of the total commitment, dedication and
hard work of a “winning team”.

Product range and quality

PVPL's product range in India includes one tonner
pick-up vans, delivery vans, special purpose vehicles
and passenger vehicles.The company has developed
close to fifty customised applications to cater to
company today has maintained its leadership in the various product requirements of industries like fast
three-wheeler cargo segment with a share of 39 moving consumer goods, mineral water, waste
per cent. It also has a significant 30 per cent share disposal, ice cream, poultry etc.
in the passenger segment.
These vehicles are engineered for remarkable fuel
PVPL has also begun to export its ape' vehicles efficiency, rugged performance and high load
from India to many countries including Argentina, carrying capacity.They are extremely environment
Peru, Sudan, Sri Lanka, Mexico, South Africa, Cuba friendly and conform to the most stringent
and Bangladesh.Till recently PVPL's focus was on emission norms. Piaggio Ape' is today the first
catering to the increasing domestic market needs choice with over 4,00,000 customers because of its
in India, however it now has aggressive plans for high mileage, low operating cost and an extended
a major thrust on the export front in the coming warranty of twenty months.
years.The company expects 10-15 per cent
contribution to its turnover from exports in the Large domestic market
future years. The rapid industrialisation and growth in the Indian
economy and the resulting need for logistics
Key factors of success in India management has driven PVPL's growth in the
country. Going forward, transportation of man and
Creditable and empowered local management material will continue to improve, given the growth
Piaggio's success story in India is a typical case targets of the Indian economy in the Tenth Five-
example of how a global company can effectively Year Plan.The need will further get enhanced with
use its global processes in a local environment the development of the rural sector. Given this
by customising its product market and fine tuning growth potential the company envisages a growth
its business model to suit the Indian market.The of 15 per cent per annum for itself over the next
company's growth and performance reflects a five years.
creditable and empowered local management,
which has effectively evolved its business model The goods transportation sector in India is also
on the basis of three principles witnessing a major shift in focus and is developing
• Commitment at the global level into a “hub and spoke” model.Whilst multiple axle,
• Empowered local level management tractor-trailer large size vehicles are today
• Localised product / market mix dominating inter city transportation system, smaller
three-wheeler and light commercial vehicles are
Driven mainly by the local management, today the catering to the movement of goods within a city.
company is seeing its vision unfold into a reality. This shift in focus is expected to generate a large
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entail a large outlay spread over the next two-

three years.

According to the company's Chairman, Roberto

Colaninno, “Piaggio is getting ready to increase
its presence in India's booming automotive sphere.
India is too large a country for us to ignore.
Therefore Piaggio will examine all the opportunities
that may come its way. Although no formal
commitments have yet been made - you never
know Piaggio may spring a surprise with the
'original' Vesta.”

requirement for the smaller commercial vehicles,

including three-wheeler.

Future plans

Piaggio's interest in Asia and more particularly in

India is well known. For Piaggio, India is a significant
destination because of its large population needing
inexpensive and basic transportation facilities. Piaggio's India operations
Going forward the company plans to enhance the • Entered India in 1998 as a joint venture with
production capacity at Baramati to cater for the Greaves Limited, later acquiring Greaves' stake
increasing demand of three-wheeler. It is also to become a 100 per cent subsidiary
contemplating the launch of its sub one tonne • Manufacturing facility in Baramati produces
four-wheeled vehicle to facilitate the “last mile 500 vehicles per day
distribution” which is growing in India. It is • Has a marketing and sales network of 240 dealer
expected that the vehicle will be on the Indian locations and 420 outlets for sale
roads in the first quarter of 2007. • Today it is the second largest three-wheeler
manufacturer in India with an overall market share
Furthermore, Piaggio is also considering the of 33 per cent
possibility of setting up an “Engine Manufacturing” • India is also a hub for exports of Ape' vehicles
hub near Pune to support not only the existing and to countries like Argentina, Peru, Sudan, Sri Lanka,
future requirements of its operations in India but Mexico, South Africa, Cuba and Bangladesh
also its global requirements.This investment will
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