Immediate or mid-term price correction is not expected in medium and higher tonnage of hydraulic crawler cranes. P.P.Basistha takes stock of the multiprogned strategy of the manufacturers to take on the pricing situation to retain their market shares in terms of volumes and value as competition picks up.

Indian construction sector is all set to witness an interesting saga of the pricing of medium and higher class hydraulic crawler cranes. Prices are well likely to remain at constant levels as was the case during the third quarter of 2009 (this is actually when prices firmed up followed by its southward movement in mid 2008). While this is likely to cheer the end users of multi-utility equipments, however, manufacturers are seriously weighing local demand situation and looking to deliver products through innovative pricing and better customer support to retain their market presence.

The demand for 250 tons and above class in crawler crane category and above 100 ton in tyre mounted category remains quite firm in India led by sound demand fundamentals. Consistency in prices is well expected to remain during 2011. However, variations, leading to northward movements are likely to happen during 2012. Nonetheless, manufacturers observe the predicted trend as 'unclear.'

Crawler Cranes The Pricing Fallout
"Pricing of mid size and heavy hydraulic crawler cranes in India is increasingly getting integrated to global price movements. There is an increased supply of crawler cranes in the Indian construction market from across Europe, Middle East, United States and other parts of the world which had earlier witnessed a surge in construction activities both in industrial, core and commercial sectors," says, Mr. A.K. Somani, Liebherr Cranes.

Crawler Cranes The Pricing Fallout
He adds, "to Take on the pricing pressure and retain market position, we are planning to offer better customer service support. Our team of qualified engineers is well- positioned to offer technical assistance to users of our high tech hydraulic cranes at any given point of time." He informs, "Liebherr has a total equipment population of over 60 hydraulic Crawler cranes starting from 350-1350 tons and over 200 Mobile Cranes starting from 30-800 tons working in India across different organizations. The presence of different capacities of cranes, with their proven technology backed by quality service support have given us a good market exposure from different quarters. We would continue to encash preference to Liebherr brand in India, which has earned a big name in quality, timely execution of order and strong after sales support."

Liebherr, which sells its medium and high capacity crawler and mobile cranes in India through the prevailing Euro exchange rates does not plan to cut down on prices as they maintain similar price globally and do not decided it country wise. The company has recently received orders to supply two units of 1350 t hydraulic crawler cranes from Nuclear Power Corporation of India Limited. It has also received order from BHEL to supply couple of units of 600 ton and a large quantity of 350 ton crawler cranes besides a good number of tyre mounted cranes from cement industry.

Crawler Cranes The Pricing Fallout
However, to retain market position in the mid segment, Kobelco has cut down prices of its crawler cranes by 10-15%. According to Mr. Anirrudh Moharir, Deputy General Manager Cranes-Voltas Limited, "Supply side constraints are no more an issue for hydraulic cranes in India. To maintain our market presence, we have resorted to price cuts going by the overall market sentiment where other manufacturers are cutting down prices by 10-15%."

Crawler Cranes The Pricing Fallout
The double whammy for Kobelco to promote its hydraulic crawler cranes in a much price sensitive market in India has also come in the wake of steep appreciation of the Japanese Yen recently at the rate of 25-30%. This has left it with little options but to cut down on pricing. As per Mr. Moharir, "To make good of the low prices and resultantly competition, we are strongly looking to make our services better by taking customers' regular feedback. Further, we are looking at options to provide better services to our customers." Voltas is the distributor of Kobelco hydraulic crawler cranes in India. The company is keen to set up its manufacturing facility in India to manufacture 90t-250t cranes.

Steep appreciation of Japanese yen has also compelled Telcon to cut down on prices of its Japanese Hitachi-Sumitomo hydraulic cranes in India. Telcon has resorted to a price cut at the rate of 30% to make the products attractive to Indian customers. However, to make the product price competitive, Telcon has begun indigenization of the Hitachi-Sumitomo crawler cranes in India.

According to a company spokesman, Telcon plans to launch 80ton hydraulic crawler cranes in India during 2011. The crane would be having 80% localized component while 30% would be imported. This would include electronics and sheet metals. As per the spokesman, post receiving due feedback from the Indian market, Telcon proposes to indigenize 250tons Hitachi-Sumitomo hydraulic crawler cranes. The company made extensive modifications in its best selling duty cycle TFC cranes.

Appreciation of Yen has made the hydraulic crawler cranes expensive putting breakers for their entry in India making manufacturers and distributors to cut prices. Equally high shipment costs from Far East to India have increased prices posing a dual challenge for manufacturers.
Crawler Cranes The Pricing Fallout
Major vessel lines transporting project cargo from Far East to India both through the transshipment and mainline route have increased their tariff levels recently.

Mr. Sheetal Malik, General Manager (Sales–Construction Cranes), Escorts Construction Equipment Limited (ECEL), says "High shipment costs have made the IHI products dearer in India. However, as a distributor we have a limited role to tackle the pricing issue, thus hurting the promotion of the products.

Crawler Cranes The Pricing Fallout
However, as a strategy to counter high pricing and retain our market presence, we are planning to provide better customer support. Besides these, we are also planning to provide long-term loans and extended guarantee to our customers." He further added that still there are few customers who value a quality product over an initial acquisition cost as the life cycle of a crawler crane is quite good. ECEL is the distributor of Japanese manufactured IHI hydraulic crawler cranes in India.

Though low prices are heating up competition impacting volumes, manufacturer like Terex is quite bullish on maintaining its presence amidst the pricing volatility in Indian hydraulic crawler cranes market. Mr. T.R. Badarinarayan, Executive Director, Terex Cranes India, "Terex has so far sold good numbers of 600t & above hydraulic crawler cranes in India.
Crawler Cranes The Pricing Fallout
The engineering that goes in Terex cranes, makes us competitive in providing value for money to our customers, through enhanced equipment uptime as compared to our competitors." He says, "Terex cranes are superior in their safety features coupled with reliable electronics and most importantly hydraulics system build into the product. The superior features of the cranes would allow us to retain our brand value in the long run despite competition hotting up through the entrance of competitors in India."

Crawler Cranes The Pricing Fallout

Increased supply of hydraulic crawler cranes in India leading to lowering of prices in the face of demand remaining firm is both a mix of global and local factors. While there has been diversion of cranes from earlier steep global demand markets importantly that of Middle East to India, which has increased their supply and brought down prices. Competition factor from European, Japanese and Chinese players have also brought down prices led by increased availability. But most importantly, there has been returning back of crawler cranes to the market post completion of big projects. The best case in this Delhi Metro Railway Corporation project, Reliance Jammnagar, IOC Panipat refinery or sugar plants in Uttar Pradesh. As per manufacturers' sources, there is a good deal of cranes availability with rental companies and also with project developers itself. Reliance is renting its cranes to the market.

Manufacturers observed that though the demand would remain firm from Greenfield projects happening. Besides these, there would be demand from project maintenance for refineries and power plants. Demand would also be driven from emerging markets like Korea, Vietnam, and Myanmar with China continuing to rule the roost. A good reason for manufacturers for not losing sleep altogether. Nonetheless, coupled with all the factors pricing buoyancy would be distant. However, for Indian contractors and project developers it is time to cheer.
Click Here
To Know More or to Contact the Manufacturer
Please let us know your name.
Invalid Input
Please let us know your Designation.
Please let us know your Contact Number.
Please let us know your email address.
Please brief your query.
Our other Value-Added Services:

To receive updates through e-mail on Products, New Technologies & Equipment, please select the Product Category(s) you are interested in and click 'Submit'. This will help you save time plus you will get the best price quotations from many manufacturers, which you can then evaluate and negotiate.

Invalid Input
Invalid Input
Invalid Input
Terex continues to strengthen its foothold in India’s Construction Equipment Market by bringing in new technologies, expanding its product portfolio, and entering new construction territories. Having marked its entry

Read more ...

Tower crane manufacturers are expanding their range with newer models and making them more cost-effective as cost of production rises and competition heats up. NBM&CW investigates.

Read more ...

A new digital platform has been launched to disrupt and simplify the process of crane rental procurement. MYCRANE – a global business-to-business (B2B) platform allows users to submit details of their lifting requirements

Read more ...

Demand for safe, versatile, and reliable material handling products like Telehandlers is growing across a wide spectrum of applications in India, says Deepak Shetty, CEO & Managing Director, JCB India.

Read more ...

The wolf is known for its adaptability and strength, which also distinguish the red WOLFFs on construction sites around the world. Latest proof is provided by two WOLFF 1250 B luffing jib cranes on the

Read more ...

Sinoboom Electric Articulating Boom Lifts Launched in Southeast Asia To mark the arrival of Sinoboom AB14EJ and AB16EJ articulating boom lifts into the Schmetterling rental fleet, a product launch event was held to showcase the series of Sinoboom machines at their

Read more ...

Enerpac has introduced new split-flow pump upgrade kits that provide the ability to network multiple pumps and coordinated lift points for higher accuracy synchronisation. The new split-flow kits allow

Read more ...

Alpha continues its leadership in mobile tower crane segment with its SG 24X30 self erecting mobile tower crane in technical collaboration with SOIMA of Portugal which delivers solutions for challenges on

Read more ...

With construction of major infra projects seeing a revival, expectations are rife that the market for mobile cranes will soon witness higher sales, including of the new, more advanced products

Read more ...

Liebherr Mining is gearing up to showcase its new mining solutions portfolio at the world’s largest mining trade show, MINExpo International 2021 in Las Vegas, USA, from September 13–15, 2021. Covering a total area

Read more ...

Tower crane anti-collision and zone protection systems are now an essential safety attachment to prevent collisions with other tower cranes and nearby structures. P.V. Ramdev, MD - Everest Engineering

Read more ...

Spartan has many awards and certifications to boast of; according to Vikram Mehta, MD, Spartan Engineering Industries, the reasons lie in the company’s focus on design and development of components

Read more ...

Top Material Handling Equipment suppliers, namely KION India, Jungheinrich India, Hyundai, Godrej, ACE, and ElectroMech-Yale are providing end-to-end Intra-Logistics Solutions and gearing up to meet the anticipated

Read more ...

We are very optimistic and bullish about the market in 2021 and expect the market volume for MHEs to have a very robust growth over that of 2020.

Read more ...

With modernisation of the logistic sector, expansion of warehousing and logistic hubs across the country, and growing e-commerce, we expect at least 20% growth y-o-y in this segment

Read more ...

We are expecting a double digit y-o-y growth of 18-20% this year, when the market is expected to cross 13000 units, led by demand from FMCG Warehousing, Rentals, and e-Commerce

Read more ...

There is a perceptible shift towards products with cleaner, greener and smarter technology in the warehouse equipment segment. Data for FY21 shows that electric powered equipment occupies 56% of the MH market

Read more ...

“With focus on environment and sustainability, electric material handling equipment is being more widely accepted. Battery-operated electric forklifts and pallet trucks will become part of ‘smart’ warehouses”

Read more ...

ElectroMech is getting involved with material handling equipment beyond industrial overhead cranes. We have added Yale forklifts from Hyster Yale Group (USA) to our portfolio, and are offering aerial work platforms

Read more ...

25 Liebherr tower cranes are involved in the construction of the Überseequartier, a new district in Hamburg. This is part of the well-known HafenCity urban development project and comprises 14 buildings of various

Read more ...

×
Sign-up for Free Subscription
'India Construction Week'
Weekly e-Newsletter on Construction Industry
Get the latest news, product launches, projects announced / awarded, government policies, investments, and expert views.