ASSET and fleet management company VB Holdings Ltd has been awarded a contract to supply about 80 trucks under a fully maintained operating lease program to the Whole of Government (WoG).
This agreement represents a critical milestone for the company, highlighting its ability to deliver comprehensive, cost-effective, and reliable fleet management solutions to large fleet clients. To response to what it describes as a landmark achievement, the SPX public listed company has announced a strategic investment of $10million in fleet assets to support its growing portfolio of contracts.
According to the company, this investment marks a significant step forward in its commitment to expanding its fleet capacity and enhancing service delivery to government and commercial clients. Its leasing division operating as Pacific Fleet Management will significantly improve its operational capabilities, strengthen its position as a premier provider of fleet management solutions and drive future growth. VB Holdings Ltd CEO Nitish Niranjan said the investment in fleet assets aligned with the company’s broader growth strategy, which focused on providing cutting-edge, tailored solutions to both public sector entities and commercial organisations.
And beyond the WoG contract, he said the Pacific Fleet Management division would also enhance the company’s capacity to deliver auto leasing services to other commercial clients, diversifying its revenue streams and reinforcing its commitment to serving a wide range of industries.
Strengthening operational capacity
and sustainable growth
Mr Niranjan said the $10m capital allocation would fund the acquisition of state-of-the-art Hino trucks and related fleet equipment to meet the requirements of the WoG contract.
The Hino trucks will be Euro 4 and 5 regulations, featuring the latest advancements in safety, efficiency and sustainability, ensuring compliance with rigorous standards while minimising environmental impact.
Euro 4 and Euro 5 are European emission standards for vehicles that focus on reducing emissions and pollutants from road transport into the atmosphere. It states the Hino Series Wide Cab is a game-changer and boasts the most comprehensive active safety package of any Japanese truck in the medium-duty truck segment. The New Hino FC Series Wide Cab’s safety package also includes ABS, Anti Slip Regulator (ASR), ECE R29-rated cab strength, driver SRS airbag, ADR84/00 Front Underrun Protection (FUP), Easy Start, Cruise Control and Fog Lamps.
“The expansion is also designed to support our growing commercial leasing operations. By increasing the scale and versatility of our fleet, Pacific Fleet Management will be well-positioned to meet rising demand from businesses seeking flexible, fully maintained leasing solutions,” Mr Niranjan said in its announcement to the South Pacific Stock Exchange (SPX).
“This investment represents a pivotal step forward for our Pacific Fleet Management division as we scale our operations to meet the demands of new and existing clients.
“The WoG contract underscores our reputation as a trusted partner in fleet management, and we are excited to extend our services to other commercial organisations. By bolstering our fleet capabilities, we aim to enhance our value proposition and deliver exceptional service across all sectors.”
The company expects to generate long-term value for shareholders from the investment.
It anticipates significant revenue growth over the coming years by fulfilling the terms of the WoG contract and expanding its commercial client base. The strategic move aligns with its commitment to sustainability.
Mr Niranjan said the new fleet would prioritise fuel-efficient and low-emission vehicles, reflecting its dedication to reduce the carbon footprint of its operations.
Value to stakeholders
He said since listing on the SPX in 2001, the company had consistently demonstrated a commitment to creating value for stakeholders through prudent investments, operational excellence, and a customer-centric approach. “This latest initiative underscores our proactive response to market opportunities and positions us for continued success in an increasingly competitive industry. Our leadership team is confident this investment will enhance our ability to deliver reliable and cost-effective fleet management solutions while achieving meaningful returns for our investors.”
Company director Jinita Prasad said the board was fully supportive of this investment that aligned with their vision of sustainable growth and operational excellence.
“Our expansion reflects the confidence we have in our team’s ability to execute large-scale contracts and seize opportunities in the evolving fleet management landscape,” Ms Prasad said.
The future
As it embarks on this phase of growth, the company has indicated its continued dedication to foster innovation, build strong client relationships, and uphold the highest standards of service delivery.
He said with a robust strategy and a commitment to operational excellence, the company was poised to capitalise on emerging opportunities and drive sustainable growth for years to come.
“VB Holdings remains dedicated to driving growth, creating value for shareholders, and maintaining its reputation as an industry leader in fleet management and leasing services.”
