OJSC KAMAZ: Strategy for New Growth and Development
OREANDA-NEWS. December 14, 2010. OJSC KAMAZ’s Strategic Development Program for a period till 2020 approved by the company’s Board of Directors at its meeting on the 10th of December provides evidence of a strategic vision of KAMAZ’s future as the Russian leader in its industry and an important international player in partnership with the world’s largest producer – Daimler.
OJSC KAMAZ planned its strategic development taking into account the goals and interests of the state as well as the company’s strategic partner. The Russian Federation considers its largest truck producer as an industry-forming enterprise of the country’s economy and the largest exporter of domestic products. Daimler is also interested in the further development of KAMAZ as a strong regional player in the world market.
Strategic priorities of the Program stipulate that Russia’s market will stay the key one for KAMAZ, and the company will maintain its dominant role in the CIS markets. As before, KAMAZ will be in attractive markets of Eurasia, Africa and South America positioning itself in the average price segment and developing integration with Daimler. KAMAZ should become an adaptive, effective, global company.
Strategic development guidelines of OJSC KAMAZ are the following: vehicle sales volumes will grow to 67 thousand units in 2015 and to 100 thousand units by 2020. The plan takes into account prognoses concerning cyclic development of the world economy. The company should maintain its leadership in the Russian and CIS markets and push up sales in new markets to further strengthen its positions. The sales share of KAMAZ outside the RF in these periods will reach 20% and 30% of the total sales volume, respectively.
The consolidated proceeds of the company will be 198 billion roubles in 2015 and 350 billion roubles in 2020. Operational profit according to International Financial Reporting Standards (IFRS) will be 16.8 billion roubles and 31.4 billion roubles, respectively, which will form 8.5% and 9.0% of the proceeds. The share of investments to the company’s development will make 3.5-4% of the year’s proceeds. Thus, 8.7 billion roubles in 2015 and 12.6 billion roubles in 2020 will be spent to achieve these objects.
The main target of OJSC KAMAZ during the next 10 years is to maintain it dominant position in the Russian market in the segment of trucks of over 14 t GVW. It is planned to step-by-step introduce new model lines of single-drive vehicles, including vehicles of transport and linehaul families since 2014. Sales of trucks of the new generation will grow from 7 thousand units in 2014 to 66 thousand units in 2020, and realization of vehicles of the current model range will gradually fall: from 41 thousand units in 2013 to 7 thousand in 2019.
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