Construction Equipment Industry

There is no doubt that Indian economy is currently in a slow mode adversely impacting infrastructure sector across segments. But industry experts dubbed the prevailing scenario a short lived global cyclic phenomena and that the Indian economy will soon bounce back on its growth trajectory making the projections of rating agencies and economists beating the dust. Although, it is true that the investment sentiments are down but given the huge infra deficit and recent funding infusions in the road sector and various initiatives of the government to boost investment are set to spur growth thereby bringing the Indian infrastructure sector back to its pristine growth glory.

In this context, NBM&CW has initiated an interaction with road construction equipment makers on the following points to gauge the impact of slowdown on the equipment industry and their business. The initiative also provides an insight of the competitive landscape to understand the market scenario, industry's growth potentials and innovative steps taken by the equipment makers to outdo their nearest competitors especially at trying times when demand for construction equipment has dwindled down drastically.

JCB India

Amit Gossain
Amit Gossain, JCB India
Slowdown in infrastructure projects in the last few months have derailed the infrastructure growth story; what are the new initiatives at your end to sustain these development?
The sentiments are not very positive at present, however we can see a quick return of growth as our government is taking concrete measures to encourage growth. Any slowdown in the infra sector will have an unswerving impact on construction equipment manufac- turers.

JCB always ensures that all our efforts/initiatives are customers centric and aims at providing the best in class services to them in every possible way. To provide incomparable after sales support, we are strategically planning the expansion of our distribution network in the remote areas of the country. Currently, we have over 450 outlets with presence in the farthest regions of the country like Leh.

We will keep introducing India-centric fuel efficient products, the latest example of which is the “All New 3DX”. It is a revolutionary product which will provide unique benefits and immense cost savings to our customers.

We will further invest in our world class manufacturing plants at Ballabgarh and Pune and will also invest in up-skilling our people to ensure that we continue to maintain our leadership position in the market.

Due to ever increasing projects size and tight schedule contractors are demanding more productive and energy efficient equipment; what is the technological edge of your products and new launches on your agenda?
Since its inception 30 years back, JCB products are known to be the leaders when it comes to performance, technological advancement and reliability. As the project requirements vastly differ in India, JCB India has always manufactured products which are robust, custom built and highly fuel efficient plus provide the best return on investment to our customers. For example the JS120, the latest offering in JCB India’s range of tracked excavator and with the JCB ecoMAX engine, it is the most fuel efficient 12T excavator in India. The “All New 3DX” backhoe loader is over 20% more fuel-efficient and is equipped with the JCB Engine ecoMax.

Compactor
JCB offers the finest road compaction equipment through its Vibromax series. The VM115 caters to the soil compaction needs of the sector while the VMT 860 is a master at asphalt compaction. These machines are built specially for Indian roads and are the best at compaction. Excellent maneuverability and compact designs make these ideal for a wide range of areas.

Recent important initiatives at Government's end are expected to bring in some positive results this year; how do you see the demand trends in 2013-14 for road construction equipment?
As road construction (national highways, state highways, and rural roads) is a major growth driver for the Indian infrastructure industry, I feel approval on building 4,000 km of highway projects under EPC will go a long way in ensuring growth. The EPC model will help in minimizing the time and cost over-runs and will enable a faster roll-out of projects.

To accelerate the development process in the rural area, the government has already formulated various schemes. For example pradhan Mantri Gram Sadak Yojna - scheme that aims at providing connectivity to all the eligible unconnected habitations of more than 500 persons in the rural area.

With increasing investment in the infrastructure sector, we foresee huge demand for road construction equipment manufacturers in the coming years. Also, as our government plans to work on the faster execution of the top priority projects, it will act as an enabler in keeping the momentum rolling.

CASE Construction

V. Junnarkar
V. Junnarkar, Case India
Slowdown in infrastructure projects in the last few months have derailed the infrastructure growth story; what are the new initiatives at your end to sustain these development?
Since India is facing a huge infrastructure deficit, the slowdown is not going to last for long. Tackling the emerging situation in the given circumstances, we have made extra efforts to support machines already working with the customers at various job sites to maximize their utilisation. Apart from this, we are working on strategies to further strengthen our network by launching of New Products to make the most out of the upcoming boom in the sector.

Due to ever increasing projects size and tight schedule contractors are demanding more productive and energy efficient equipment; what is the technological edge of your products and new launches on your agenda?
Case Construction Equipment
Case Construction Equipment is a global full-line construction equipment manufacturer enjoying unmatched heritage of leadership, innovation and reliability built over past 170 years by attaining global expertise and excellence.In India, the company has consolidated top position in vibratory compactor and is also a market leader in loader backhoe segment. It is now poised to expand its product offering by introducing new products line to become a full liner in the construction equipment segment.

Recent important initiatives at Government's end are expected to bring in some positive results this year; how do you see the demand trends in 2013-14 for road construction equipment?
As the pace of projects delivery and their execution picks up, the demand for Road Construction equipment will also grow and we are fully geared up to cater to the emerging demand trend. In view of this, we have also launched Skid Steer Loaders recently and will announce the launches of other new products at the right time. The future of CASE – INDIA looks bright with a series of new models.

After market services, leasing, buyback, AMCs, equipment operational services are the emerging trends. How are you positioning yourself to meet these expectations?
Case India is committed to use the best technology and resources available in the global market in order to deliver product efficiency and reduce customer’s owningand operating costs. We already have a strong dealership network capable of offering value added services like, AMC, equipment operational services. In addition, we have a clear focus on providing efficient after sales services to prove our superior product value and win the satisfaction of our customers in the marketplace.

Wirtgen India

Ramesh Palagiri
Ramesh Palagiri, Wirtgen India
Slowdown in infrastructure projects in the last few months have derailed the infrastructure growth story; what are the new initiatives at your end to sustain these development?
The past few months have indeed been slow for the growth of infrastructure projects and industries. Nevertheless the strategy for Wirtgen India, has been to focus on strengthening our sales network and capacities to be prepared when the market revives. Training is also one area where we continuously work on; and also the focus is on Inventory and receivables control.

Asphalt Pavers
Due to ever increasing projects size and tight schedule contractors are demanding more productive and energy efficient equipment; what is the technological edge of your products and new launches on your agenda?
Wirtgen group offers the most innovative products in the field where we opearate. The average age of a major of our machines is less than 3 years and this is possible due to continuous innovation.

By next year, we are introducing the new generation of Asphalt pavers – Dash 3, the new Recylcer W 240 as also the 9 ton class - Tandem roller.

All these machines would be in Indian market by next year and are World class products for Road Construction and Rehabilitation.

Recent important initiatives at Government's end are expected to bring in some positive results this year; how do you see the demand trends in 2013-14 for road construction equipment?
In 2012–13, there is a 20–40% drop in business for our products. The government plans to award EPC contracts which are Cash contracts. If these are awarded next year, the sales would improve to attain the 2011 figures again.

After market services, leasing, buyback, AMCs, equipment operational services are the emerging trends. How are you positioning yourself to meet these expectations?
The Customers are now looking at the Total cost of Ownership rather than just the initial purchase cost of a machine. Hence the AMC’s, FMC’s with parts supply, as well as Renting machines would also be areas to look for in the coming years.

Apollo

Asit A. Patel
Asit A. Patel, Apollo
Slowdown in infrastructure projects in the last few months have derailed the infrastructure growth story; what are the new initiatives at your end to sustain these development?
We anticipated the market slow- down even in April/May 2012 and suitably modified our production plan. In any market slowdown situation, competition is inevitable. We follow a policy of retaining the market share, even if it means marginal reduction in contribution. All our products are fairly well positioned in the respective market segments as value for money products-hence there is no immediate need for repositioning.

Due to ever increasing projects size and tight schedule contractors are demanding more productive and energy efficient equipment; what is the technological edge of your products and new launches on your agenda?
Technological upgradation is a constant process at Apollo. Energy efficiency has been our USP across the products range. We have a couple of new launches under plan and one product is likely to be launched in October this year.

Batch Mix Plant

Recent important initiatives at Government's end are expected to bring in some positive results this year; how do you see the demand trends in 2013-14 for road construction equipment?
Yes - The EPC model is expected to bring in some positive results in the years to come. We estimate a growth of around 8–10% in the market segment of road construction equipment in which we are present.

After market services, leasing, buyback, AMCs, equipment operational services are the emerging trends. How are you positioning yourself to meet these expectations?
We offer comprehensive AMC as well as operation and maintenance contract for our asphalt batch plants. We also anticipate that the demand for such services shall go up in the future and are fully prepared to meet such demand.

Conmat

Nagesh Kudva
Nagesh Kudva, Conmat
Slowdown in infrastructure projects in the last few months have derailed the infrastructure growth story; what are the new initiatives at your end to sustain these development?
There is no denial to the fact that whenever there is a slowdown in infrastructure projects, OEMs have to revise their strategies. Further many might believe that in the last few months, we had a derailed infrastructure growth story but we at Conmat never felt anything like that was affecting us. We at Conmat have witnessed healthy and promi- sing numbers in the recent past and the entire credit goes to our technologically superior products, excellent service quality and the pricing policy. As far as initiatives are concerned Research & Develop- ment, Customization, Product upgra- dation etc are continual processes at Conmat and that is what always provide us a competitive edge in an era of fierce competition.

Due to ever increasing projects size and tight schedule contractors are demanding more productive and energy efficient equipment; what is the technological edge of your products and new launches on your agenda?
The latest technological advanc- ement in the concrete batching plant industry undoubtedly has to be the TWIN SHAFT MIXER technology. This technology ensures a three-dimensional mixing of concrete by its twin shafts undergoing a rotator motion in clockwise and anti-clockwise direction. This technology not only ensures better quality of slump with any specified recipe but also reduces the maintenance up to 30% in batching plants.

CONMAT is pioneering in introducing indigenous make TWIN SHAFT MIXER starting from 20 m Cu.M. onwards. TWIN SHAFT MIXER is the latest technology for quality concrete mix. Low maintenance and minimal wear and tear of components are some of the prominent features of a TWIN SHAFT MIXER. All their plants are inline bin system with latest inventory control software which on one hand enables end user to erect a plant in the minimum available space and at the other hand the automatic PLC enables more than 100 recipes of slump to be defined even when the plant is running in an auto mode.

Concrete Batching Plant

In order to meet emerging need of the customer, CONMAT has recently launched FULLY AUTOMATIC MOBILE CONCRETE BATCHING PLANT with TWIN SHAFT MIXER technology for the first time in India. This fully mobile concept has been well acknowledged and appreciated by the building contractors, real estate builders, small and big infra contractors as this mobile plant meets their requirement since this doesn’t call for any heavy foundation, big stock yard etc.

Similarly, our mechanized and electrically operated concrete pavers are far more energy efficient and productive to the hydraulic pavers. Qualities like no oil spillage or power losses, low maintenance due to high quality geared motors, very low power consumption with higher output and hence faster paybacks, advanced electric drive systems are some of the prominent features that make the Conmat Paver more desirable and preferable for various road projects.

Recent important initiatives at Government's end are expected to bring in some positive results this year; how do you see the demand trends in 2013-14 for road construction equipment?
We at Conmat are extremely confident that in the coming year with huge number of road projects lined up our technologically superior and excellent quality products like Fully Automatic Concrete Stationary and Mobile Batching Plants with TWIN SHAFT MIXER, Mechanized in-situ concrete paver finisher and Transit Mixer will deliver on the quality standards expected by contractors and committed by us.

After market services, leasing, buyback, AMCs, equipment operational services are the emerging trends. How are you positioning yourself to meet these expectations?
We believe that Leasing and Buyback are trends that are yet to gain popularity and acceptance in the Indian market. Though we at Conmat keeping up pace with the upcoming trends offer AMC / Extended warranty to our customers as and when required.
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