Excon 2017, South Asia’s largest construction equipment exhibition, ended on a successful note, having attracted 925 exhibitors (including 275 from abroad) and 40,000 business visitors from across the globe. Dignitaries at the event included Mr. Anant G. Geete, Hon’ble Union Minister for Heavy Industries and Public Sector Enterprises as chief guest; Mr. R V Deshpande, Hon’ble Minister for Large & Medium Industries & Infrastructure Development, Government of Karnataka; and Mr. Amitabh Kant, CEO, Niti Aayog, Government of India, amongst others.
Speaking at the inaugural session, Mr. Anant G. Geete said, “Under Prime Minister’s leadership, the NDA government is trying to pave the way to lead India as a developed nation. The ‘Make in India’ is a pivotal initiative, especially in the heavy industry sector, wherein we want foreign players to invest in India, and encourage Indian companies to invest and grow in India as well. Equipment makers have good opportunities as there is phenomenal investments being made in the Infrastructure sector. We have also launched a slew of schemes to promote the capital goods industry. In the coming years, around `7-8 lakh crore is expected to be spent.”
Adding to this, Mr. Amitabh Kant, said, “I envisage the construction sector as one of the biggest growth drivers of the Indian economy in the coming years. Especially with the growing urbanization in our country, there is a need to accelerate growth rate by 9-10% year-after-year for three decades or more to be able to move above the poverty line. The government has not only provided impetus to 100 smart cities, 50 metros etc. but we also see a significant impetus to the railway and irrigation sectors. If India’s ambition is to grow 9-10%, the construction sector must grow at nearly 50% every year. Our objective is to provide the right ecosystem to the CE sector, and have taken a number of measures for providing ease of doing business to the companies.”
Ms. Shobana Kamineni, President, CII, said, “The construction industry remains the fundamental strength of the economy with important multiplier impact. Under the Make in India matrix, construction machinery, as a key component of the capital goods sector, contributes to India’s manufacturing prowess, and is set to witness strong expansion.”
Chairman Excon 2017 Mr. Vipin Sondhi in his address, said, “The Indian CE Industry, which peaked in 2011, went through a downcycle for four straight years from 2012 until 2015. In 2018, the industry will surpass our best year of 2011 with a growth of 14%. The industry is headed for better days with a projected stable growth of 10% CAGR over the next 5 years, compared to 7% in the previous decade. The government has made infrastructure creation a major pillar for sustained growth, and has announced a number of projects in roads, railways, metro rail, mining, irrigation, power and urban development, which are the growth drivers for our industry.”
He added, “We are entering the 9th edition of Excon, which has a 17-year long legacy, having started in 2000. With each passing edition, the trade event has witnessed immense growth both in quality and participation. Excon 2017 saw a 16% growth in the number of exhibitors compared with the 2015 edition, with the participation of companies from over 20 countries, and country pavilions of leading economies like Germany, Italy, China, South Korea and the UK.”
The Infrastructure Summit organised by CII during Excon deliberated on the opportunities in infrastructure development through Public Private Partnership. A CEOs Round Table Session saw participation of leading global and Indian CEOs in the infrastructure and construction sectors.
According to the CII-iCEMA report on Indian Construction Equipment Industry, released during the event, the combined Indian Construction Equipment (ICE) market, including construction equipment, spares, service and exports, which stood at USD 5.8 bn in 2016-17, is likely to touch USD 10.5 bn by 2021-22. The overall market for spares for earthmoving equipment in FY 2016-17, which was in the range of `4,000 - 4,300 crore, is expected to go up to `5,800 crore by FY 2022, with the allied services business being pegged at `800-850 crore, giving a huge opportunity for growth of the components industry.
CII EXCON 2017 provided an international platform for local component manufacturers to showcase their offerings to a global audience. The south and west India are hubs for component manufacturing with a good mix of domestic and MNC players. Tamil Nadu, a leading hub for automotive manufacturing and spares, is also becoming the preferred destination for CE component manufacturing. The road ahead for component manufacturers is to work more closely with OEMs, and initiatives like ‘Make in India’ and GST would provide them the required fillip for a robust growth.
Mr. Pratik Kumar, CEO & ED, Wipro Infrastructure Engineering, said, “The growth of Indian CE industry has a positive impact on the component industry since it is interconnected and interdependent with OEMs. The component industry is expected a have a CAGR of about 12% as compared to last year’s 5-8%. Over the next few years, we will see a lot of component companies bringing in new technologies, new processes, building capacity, and benchmarking with global best practices. This will not only position the Indian market more strongly, but also contribute to the export market.”
Mr. M. Seethapathy Rao, CMD, Hycom Engineering India, said, “I have been associated with Excon since its first edition, and this year has turned out to be the best edition ever. The premise is that the component is where technology is built for the equipment. The CE industry is likely to grow by 15-20%, so the components industry will grow accordingly.”
Excon has emerged as an important platform for leading global and domestic construction equipment players to demonstrate their world-class technological prowess and capabilities, and to discuss and debate on the opportunities and challenges in creating world-class infrastructure. With the participation of almost all leading players in the 2017 edition, the CE Industry is geared up for facilitating faster and sustainable development of infrastructure and related sectors in India. The Government of Karnataka was the Host State and the Indian Construction Equipment Manufacturers Association (iCEMA) was the Sector Partner, supported by the Builders Association of India (BAI).