Enabling the crane rental process to become several notches faster and simpler, is MYCRANE – a new digital rental concept in India which has the potential to disrupt crane rental procurement through digitalization.
The benefits of using technologically advanced and more fuel-efficient machines are driving demand for such machines. However, deterred by their higher price, many users are opting to rent them instead - a business proposition that has become very lucrative to the rental companies, so much so, that in a bid to remain competitive and capture a large chunk of the rental business, OEMs are incorporating more and more advanced features, including improved customer support, and offerings of easy finance. Little wonder then that the market for rentals is becoming more and more attractive by the day.
India is seeing a surge in infra construction and mining activities, which is raising demand for equipment for use in these sectors. There is also an increasing demand by developers and contractors for machines that have integrated new technologies, including digitalization for automated services, sensor-based controls, telematics for equipment tracking and mapping, and for predictive maintenance.
Equipment rental companies, keen to grasp every business opportunity that comes their way, are smartly adding the technological upgradations provided by the OEMs into their fleet and offering such advanced machines to customers looking for highly productive and technologically sound equipment.
In fact, OEMs are developing more and more technologically advanced features, which is making the market for rentals very attractive by the day. The OEMs are focusing on incorporating advanced safety features such as lift assist, 360-degree camera visual, work lights for night-time operations, and new systems that improve operational efficiency and require lesser maintenance. All these will help rental companies become more profitable in the long run.
However, the higher cost of such advanced machines makes them quite unaffordable, especially to the small builders and sub-contractors, they are opting for renting them. Besides the savings (due to not buying a machine), renting will also save them the cost of hiring an operator, cost of transporting the machines between jobsites, and of maintaining and repairing them – all of which tasks are performed by the rental companies as part of their customer service and after-sales offerings. Rental companies are also offering onsite support to the end-users of their machines at remote locations, with a quick on-time response to prevent machine downtime. What’s more, rental companies often upgrade their fleet with new, more advanced features, and provide the upgraded machines to their customers based on the projects’ requirements.
The highest demand for rental equipment is being seen in the earthmoving segment, followed by concrete and road construction machines. Earthmoving equipment such as excavators have wide applications in construction, mining, and agriculture sectors. Wheel loaders, backhoe loaders, skid-steer loaders, and mini excavators, are also in demand as they can work efficiently in harsh conditions. Crawler cranes, truck-mounted, rough, all-terrain, and pick-n-carry cranes are seeing increasing usage on the back of infrastructure development projects and capacity expansions across core sectors: cement, steel, petro-chemicals, energy & power, oil & gas, metro rails, bridges, and railways.
Renting has become a profitable option for construction companies as it provides them the ability to cut costs and run a more financially stable construction business.
Satin Sachdeva, Founder & Secretary General, CERA (Construction Equipment Rental Association)
The Indian market for equipment rental has grown from 10 percent to 25 percent in just four years. The Indian government’s increased focus on infrastructure will further boost the industry.
The rental market has grown considerably over the past few years. When CERA was formed four years ago in 2017, the rental market was less than 10 percent. Today, it has grown to over 25 percent. Currently, the rental industry is in a stage of consolidation and diversification. Various market research organizations have predicted the next five years as the growth period for India’s rental industry. According to Mordor Market Intelligence report, the construction equipment rental market was valued at USD 103 billion in 2020, and is expected to reach USD 137 billion by 2026, and register a CAGR of 4.78% during the forecast period (2021 - 2026).
An uncertain market, rising construction costs, rising cost of purchasing, maintaining and operating construction equipment, finding ways to save money, and concentrating on the core business of construction have offset the trend for renting equipment. Construction companies and contractors engaged in building roads, highways, bridges, metros, buildings, and specialized, high value and heavy machines have contributed to this growing trend.
Deliberations over renting versus buying equipment have been taking place for quite some time now. Many rental companies have started modernizing and diversifying into other equipment categories like AWPs and other unconventional equipment segments so that they can cater to a larger category of end-users.
The rising cost of equipment due to the hike in steel prices along with the BSIV norms have created a conducive environment for the rental industry which is a primary buyer of equipment.
The rise in prices of construction equipment will create new opportunities for the rental market as many contractors and construction companies will start considering renting as a financially viable option, plus, they will not have to bear the cost of maintenance, operations, and manpower.
The price rise will also result in forcing equipment rental companies not to buy unnecessarily as it has been noticed that this leads to oversupply of equipment in the market and impacts the rental tariffs and business.
Though the Equipment Rental Industry has been facing some issues for quite some time now, the Government is yet to address them and give solutions.
The Rental Industry is facing delayed payments for which there should be a mechanism and a firm law to secure timely payments.
Paying GST and other dues to the government are important, however, GST needs reforms as far as the rental industry is concerned. The Government should support the industry by levying GST on reverse charge basis, making the service receiver liable to pay GST, or it should make GST a liability on the service provider after the company has received payment. There should also be uniform RTO taxes in all the states of India.
The Rental industry is facing an acute shortage of skilled manpower and rising cost of labour and logistics.
Artificial intelligence, telematics, paperless pre -and post rental equipment inspections and other new technologies are set to change the rental industry. Telematics will play a major role while GPS technology will become mandatory on all equipment. All this will create the need for skilled and certified operators as the new technology machines will not be easy to operate by untrained and non-technical operators. Only skilled operators will keep machine and men safe.
The industry is also facing a rising cost in the manpower. The labour cost has gone up by around 25 percent. Even the cost of logistics has increased. All of this has significantly increased the overall operating cost of a rental company; hence, the rental tariffs need to be revised.
Coordination and cooperation between rental companies and the OEMs is needed for mutual business growth.
We believe that OEMs are the best when it comes to aftermarket service, maintenance, refurbishment, availability of spares, and for access to easy finance. However, more awareness is needed in the rental industry to use only genuine spare parts and avail the servicing and maintenance from the OEMs in order to keep equipment in the best working condition and for a longer duration.
In case of idle machines, OEMs can give business leads for renting. The OEMs should support the rental companies rather than selling their equipment directly to construction companies. A balanced and mutually beneficial approach is needed between the OEMs and the rental industry.
With a plethora of ongoing and upcoming infra projects, it seems that in the coming times, demand will exceed supply of equipment and that will be the phase when we will see a boom in rentals across the CE industry.
Premal Thaker, President, Crane Owners Association of India (COAOI)
There is a huge potential in the near future to dynamically expand the rental business.
India is a developing economy but when it comes to infrastructure developments per se, we could only visualize a gradual growth in the past few years. With the development of metro projects across India, expansion of oil refineries, road extension projects like MTHL and Coastal, the future seems to bring exponential returns on investments.
The high-speed rail project itself demands a plethora of equipment on rental. We are just looking at the Mumbai-Ahmedabad phase at this moment. Subsequent extension of the bullet train to other cities and states will itself be an added advantage.
Covid-19 had resulted in a trough of the economic cycle, now there is no going below this. Businesses globally have started experiencing an upper curve and therefore the organization that aims at exploring different avenues will swing with the market and enjoy maximum gain in the long term.
The hike in steel prices and mandating BSIV norms will lead to rental companies hiking up their rental rates.
One who adapts well with the changing times wins. BSIV engine norms were vital and it was high time the government mandated the same. On the other side, steel prices are quite volatile. Looking at the bigger picture, if the prices start increasing from the bottom of the chain, eventually, there will be a hike in each product and service.
As mentioned earlier, when there is an upward cycle, businesses will make the best of it and increase their revenue by all means. Rental players also understand the necessity to hike the rates and increase equipment price. Rental players will gain a huge momentum if their clients, specifically contractors, prioritize renting over purchasing.
KYC of each client should be done before giving any equipment on rent.
Rental companies should do a basic research at the website of the Ministry of Corporate Affairs (MCA) or the clients’ website, where information related to projects handled along with their ongoing projects are listed. Rental companies can also regularly check the list of defaulter clients which is circulated by various associations.
These small steps will help equipment owners in the long run and in having lesser incidents of their clients defaulting in payments.
Increase in competition amongst construction equipment rental companies results in low rental rates.
All rental companies should unite and fix standard hiring charges which will end the price war among them.
To stop the unethical lifetime tax demanded by a few states for the entry of any construction equipment or simply for their passing through, or even for a short stay, the solution lies in implementing a ‘One Nation One Road Tax’ by the Central Government. This should be done on a priority basis.
Rental players are looking for a huge support from OEMs in terms of after-sales service.
Manufacturers will have to be more supportive in terms of their after-sales service. Since the demand for equipment is increasing drastically, some of the manufacturers are currently focusing on quantity in order to be more competitive. Although, if they rightly focus more on quality, sky will be the limit for them and they will find success in their business rapidly.
Somehow, in the recent past, demand and supply have been at parity. Although in the coming times, it seems that demand will exceed supply of equipment and that will be the phase when we will see a boom in rentals across the CE industry.
The Rental market has grown exponentially given the easy availability of infrastructure equipment and its rental rates. CAPEX vs OPEX has played an important role in the growth from the users’ point of view.
Meghraj Singh, President, Aerial Platform Association of India (APAOI)
Exponential growth in the infrastructure segment and increase in demand for safe working practices is driving growth of the Rental AWP market in India.
Developed countries have modernized and organized the usage of aerial work platforms. This has facilitated optimum and convenient availability of the platforms in all the required industries. However, compared to the USA, Europe and other developed countries like Japan and Singapore, the Indian AWP market is still in the process of maturing in terms of knowledge and use of aerial work platforms and there is also a wide disparity in the man : machine ratio compared to the USA and Europe.
There is immense opportunity for rental companies in the coming years, be it rentals for AWPs, cranes, or any other construction equipment.
The market for access equipment needs a greater level of professionalism; it needs to come out from its traditional way of doing business with a larger number of specialised access equipment. A major development is the shift towards hybrid and electric equipment. The country’s powered access fleet is looking at a possible 10% rise this year from a total MEWP population of around 10,000 units.
An area of gradual change is in the age of used equipment. Companies must upgrade their fleets from 20-year-old machines to 10-year-old units.
Rental companies are relying on their existing fleet to yield relatively better rentals.
Equipment prices have shot up due to the steel price hike and the BSIV norms. No doubt, the situation is very tricky for the rental market where there was a V-shape recovery witnessed post the first wave of Covid-19.
However, the economy recovered very quickly, and business began to return to normal from November 2020. There was a sudden spurt in demand for rental equipment, especially AWPs as restrictions imposed on the movement of international cargo and in major ports curbed the supply of equipment. Many companies had placed orders for equipment which were stuck due to the non-availability of containers and shipments. The unprecedented situation boosted demand for rentals.
However, with new variants of the virus emerging time and again, the situation continues to be tricky and uncertainty looms over the Rental industry. Also, new investments, rising prices, lockdowns and restrictions that upset the supply chain, the demand supply gap due to a longer waiting period for new equipment manufacturing, have made the rental companies feel that in such a scenario, their existing fleet could yield relatively better rentals.
Major equipment rental associations are in discussions to form an Indian Rental Alliance (IRA) which would strengthen the equipment rental industry by making it an organized sector and bringing standardizatíon in the rental business.
The rental industry is facing various issues such as lower rates being offered by smaller and unorganized players, lack of skilled operators, lack of security for the outstanding dues from customers, lack of specific safety standards and compliances are also holding the industry back.
These issues confront all rental companies irrespective of their fleet or company size. It’s important, therefore, for all rental companies to support each other and find solutions. Major rental associations are also in line for the formation of an Indian Rental Alliance (IRA) to make the rental fraternity a formal, organised industry.
OEMs must approach Government bodies to put safety legislations in place; and implement operator training programs. They must stock consumables and spares to maintain rental fleets as per the OEM standards. Last but not the least, the OEMs must recognize the rental industry as a standard industry to the end-users.
The Rental industry has a direct co-relation with the country’s economic growth.
The Government is giving a thrust to the development of many public infrastructure and industrial projects towards which it plans to spend around Rs. 75,00,000 crores in the next 5 years. Many global companies are setting up manufacturing plants in India, including in sectors like automobiles, electronics, pharmaceuticals, and chemicals. The growing private sector participation in infrastructure and industrial projects will further boost demand for rental equipment.
We see mega infrastructure projects coming up in the Far East, the Middle East, and in the Indian Subcontinent, so demand for cranes in these regions will be high.
Rishi Sanghvi, MD, Sanghvi Movers
As capacity addition ramps up across core sectors, we are seeing robust demand for cranes with increasing utilization and yields.
With the pickup in the capex cycle, the thrust on infrastructure and core sectors, and the resilient Indian corporate houses, we see a strong demand for cranes over the next 2-3 years. In the thermal power sector, NTPC is executing several Ultra Mega Power Projects across the nation. These projects are in the 660 - 800 MW class with a total capacity addition of 9,840 MW.
The cement sector is witnessing aggressive capacity addition with greenfield and brownfield expansions of 18.15 MTPA. Similarly, the steel sector is expected to add 13.5 MTPA in Kalinganagar, Bellary and Angul.
Several expansions, upgradations and new refinery and petrochemical projects are coming up in Barmer, Paradip, Vizag, Baruni, Panipat, Vadodara and Mahul with a combined new capacity of 20.6 MTPA. The rapid urban infrastructure upgradation has led to the development of metros across various cities. Moreover, the High Speed Railway presents massive opportunities for the construction equipment rental industry. The wind sector was initially forecasted to add approximately more than 2.5 GW per year which will create a lot of demand for cranes.
Successful and timely completion of projects depends not only on high-tech equipment but also on providing value added services.
As a pioneer in the crane rental industry, we realized that one of the biggest challenges for the industry was completing projects on time with good vendors. Sanghvi Movers Limited is the fifth largest crane rental company globally, and we have started offering value added services such as engineering, lift planning and turnkey EPC solutions. Our customers are keen to work with a Company that has a reputation for delivery, a track record of safety, and the highest quality of manpower and equipment.
Massive industrialization across the country is increasing the need for smart, high capacity lifting equipment; this is opening new avenues of development for the crane rental market in India.
Rakesh Gandhi, Director, Express Equipment Rental & Logistics
In India, the demand of crane rental is growing owing to the increasing number of infrastructure projects, which require erection and lifting.
Cranes are widely used for major industrial applications such as power plants and turbine installation. This growth is evident in the industrial as well as the core infrastructure sectors, with the result that there is a surge in demand for rental cranes, especially the medium and high-capacity cranes.
Renting is more financially viable, and there is a huge scope for growth in this segment amidst the rising competition.The high maintenance cost of the cranes is diverting customers to rental service providers, who are on a massive revamp mode. They are adapting local regulations to penetrate deeper into the market. With many companies preferring renting a crane in lieu of owning one, rental companies are witnessing an upsurge in demand.
Key rental players will be expected to provide efficient services and offer advanced technology equipment.
Nowadays all businesses are becoming customer-centric. Having a close understanding of client activities and requirements is going to be critical in delivering top-notch customer experience in the rental space. In this competitive market of crane rentals, you need to ensure equipment availability along with competitive rates.
Rapid increase in construction and government funding for infrastructure development and the focus on smart city development will offer lucrative opportunities for the crane rental market. India is expected to witness high growth in coming years so key rental players have to provide efficient services and offer advanced technology equipment. Express is one of India’s foremost companies that provides an extensive range of heavy lifting equipment on a rental basis.
The age of equipment is another challenge as companies want younger equipment even if the older equipment is well maintained as per OEM standards. The major business challenge is to remain cost competitive, while at the same time offer improved technology solutions to the customers in a dynamic business environment.
One of the major challenges that the rental industry is facing is to get skilled crane operators on board. To meet demand for skilled crane operators, Express is providing extensive training programs, conducting workshops and seminars, which also aim at ensuring operational safety in order to reduce accidents and mishaps at jobsites.
In view of the increase in equipment price with the implementation of BS IV emission norms, hike in steel price, and other inflationary factors, rental companies can take this as an opportunity to impress upon project owners/contractors the benefits of renting such as higher profitability.
To procure a new crane/equipment, one needs an upfront capital. As a vendor/service provider, it is always a tough decision when it comes to investing in an equipment. On the other hand, customers will always consider renting a crane/equipment versus investing in one. The major reason is the after-sales maintenance of a heavy machinery. Express with its 50+ years of experience still faces new challenges in equipment maintenance, then how can a raw project owner/contractor handle breakdowns and the need for frequent servicing.
The other advantage of renting over buying is that the customer need not worry about operator training and securing licenses with regular addition to their payroll. A service provider supplies the equipment along with a highly skilled operator to manage the project as well as the machinery.
Another advantage is the inventory expenses. The project owner/contractor need not worry about securing spares and tools for the equipment as this falls within the rental provider’s scope of work. Lastly, the client can focus completely on the project operations without having to worry about the movement of materials, which is the responsibility of the service provider.
As a large number of infrastructure projects get announced - both in urban and rural India - we will see strong growth in the rental segment in the coming years.
Deepak Shetty, CEO & MD, JCB India
The rental market drives business and significant market growth.
The rental market for construction equipment has been very strong in India for the past many years; it constitutes close to 60% of the equipment sold in India, though it is still fragmented and unorganised. While different product categories have different trends with regard to rentals, two important categories in this space are Backhoe Loaders and Excavators. The rental market drives significant market growth and sentiment, which is critical for equipment manufacturers. In fact, the segment has developed because the larger contractors prefer to buy only specialised machines and take the other easily available machines on rent.
Infrastructure development makes a critical contribution towards rentals, especially in semi-urban and rural India.
In semi-urban and rural India, plant hirers buy machines and give them on rent to bigger contractors or large construction companies. This has created a very healthy ecosystem where larger companies can pick up equipment in the rural areas on rent, thereby contributing significantly towards the local economy and also in the creation of jobs. This is leading to prosperity in the deep interiors of the country and thereby contributing to the vision of an Atmanirbhar Bharat.
JCB machines offer rental customers reduced fuel consumption and lower maintenance.
At JCB we fully realise the importance of the rental market for timely development of projects, so much so that our machines are designed keeping the requirements of our rental customers in mind. We have worked on reducing the fuel consumption in our Backhoe Loaders by almost 30 to 40% over the last 10 years. For instance, our new 3DX has been made 7% more fuel-efficient. This has up to 8% higher digging force for better performance, and, with its 15% lower maintenance cost, the machine provides an excellent return on investment. Since the contribution of equipment maintenance to operating costs is also significant, we have worked heavily in reducing the maintenance intervals required for the servicing of our machines, thereby leading to considerable savings for our customers.
The residual value of a machine is an important consideration for buyers.
By virtue of high-technology, quality, and reliability of the equipment, JCB machines are able to fetch a high residual value in the market – an important factor for all customers, including the rental market – when considering a JCB machine. We have tied up with all leading banks and NBFCs for easy funding of our machines. There are a number of financing schemes and options that our customers can choose from.
JCB is offering advanced Telematics technology along with world-class product support for its machines.
Since machines work on an hourly rate, product support is another strong factor to be considered while purchasing any construction equipment. JCB with its widest product support network ensures that our customers are never far away from professional product support. Today, we have over 700 outlets and 60 dealers across India to ensure that customers get world-class product support.
JCB machines come with a lot of technology for the overall improvement of productivity and efficiency of the machines. It is also essential that the skilling of operators takes place regularly to get the best of the equipment. The advanced Telematics technology ‘Livelink’ fitted on our machines helps rental customers to track and monitor their machines, and get real-time updates on their service, operations, and security. This is very beneficial to large fleet owners in equipment management. Our customers can also order parts online with our parts App and get them door delivered.
Currently, almost 50% sales of standard construction equipment like excavators, backhoe loaders, vibratory compactors are to equipment hirers.
Vivek Hajela, Vice-President & Head-CEB, L&T
There is a proliferation of small hirers and rental companies who have entered the business and are expanding their fleet.
The growth of infrastructure construction in India has provided ample opportunities to many entrepreneurs, one among them being equipment hirers. This has led to a proliferation of small hirers and rental companies who have entered the business and expanded their fleet to include various equipment for jobs such as earthmoving, compaction, piling, concreting etc.
Many large construction companies and contractors have moved away from owning the standard equipment to either hiring or sub-contracting to remain relatively asset light. This has opened new avenues for smaller hirers to enter this business. Hence, at present, almost 50% sales of standard construction equipment like excavators, backhoe loaders, vibratory compactors are to hirers. However, unlike the developed world where equipment rental business is more organised, hiring in India continues to be highly fragmented and unorganised.
L&T has an extensive network of sales and after-sales support which serves the needs of small, medium, and large customers spanning the entire spectrum of application segments in Construction & Mining.
We cater to large corporate customers engaged in infrastructure construction and also large mining customers in cement, steel, alumina, zinc etc. Every customer has his own specific requirements for after-sales support covering application engineering, repair, maintenance, and skill development. Our dedicated application engineering team interacts with the users to provide optimum equipment solutions and works closely with them to improve performance parameters so that the customers get best value from their equipment.
Our training teams are doing exemplary work of not only providing skills to freshers but undertake specialised training programmes for customers.
We have 6 world-class service and training centres, which undertake full maintenance contracts in which we deploy a dedicated team of service engineers with special tools and stocked parts at site for 24/7 support. This ensures high uptime of more than 90% year after year.
We have several Komatsu equipment under FMCs for more than 10 years. This is the testimony of the value which our customers derive from specialised support. Similarly, we offer AMCs, site support, etc, and can tailor-make the support package to suit specific needs of the customers.
Skill development has been a hallmark of our long innings in the industry. All our service centres are accredited by NSDC as Training Partners. We have portable simulators for construction contractors and have installed large-size simulators for mining customers. Every year, we train more than 4500 operators and mechanics under PMKVY.
Customers are demanding rental machines for short-term projects of six months to two years, without having to invest heavily in a new machine.
Rajeshwar Singh, MD, GHH Group
Rental customers have the advantage of using their rented machines for short-term projects.
The overall market for rental business in India is around 7 to 8% of new equipment market, and over the last few years it is growing at a much faster rate. With the boom in the tunnelling and construction segments, there is potential for the rental business to grow, especially rentals of shotcrete and drilling machines required in tunnelling jobs.
We are seeing customers demanding rental machines so that they can enjoy the advantage of using them for short-term projects of 6 months to two years, without having to invest heavily in a new machine.
One of the biggest challenges is providing old machines with the reliability of ‘good as new’.
Once our new GHH workshop is ready, we will be able to offer machine rebuilds to rental customers, whereby they can be assured that the machine will run trouble-free for the duration of the contract.
We can even offer our rental customer a full or a partial rebuild of used or old equipment with reliability, so that they can further promise their clients a reliable performance of as good as new machines.
GHH India is providing on-site support through its technical personnel who also conduct training and carry out maintenance under cost-per-hour contracts. In most sites, GHH India has a dedicated warehouse/stock on-site to support customers with fast turning maintenance and spare parts. The company is also working towards a better financial tie-up with banks so that with the availability of finance, it will be in a stronger position to provide a complete solution.
Demand for rented machines is increasing due to the soaring government expenditure on infrastructure projects which require technologically advanced construction equipment.
Sandeep Mathur, Brand Leader, CASE New Holland Construction Equipment
The ongoing volatility and challenges in the market could see a surge for rental equipment.
The construction equipment rental market has witnessed a steady growth in recent years. The demand for rentals has been driven by the need for cost-efficient equipment, rising fuel prices, and the upcoming, new construction projects.
However, managing finances is necessary as consumers are always looking for the most cost-efficient solutions. So, there could be an increase in demand and usage of rented equipment, primarily because the cost of purchasing a new machine will be comparatively on the higher side.
According to industry reports, the Indian construction equipment rental market is anticipated to register a CAGR of about 5.1% during the forecast period (2020 – 2025). Rentals are preferred by new owners of equipment as a rented machine will reduce the cost of maintenance and a technologically advanced rented machine will bring fuel efficiency and cost savings with higher productivity.
Our retail finance arm CNHi Capital ensures a host of convenient finance options for our customers.
A purchase decision is often driven by availability of finance. At CASE, we are fortunate enough to have an in-house retail finance company (CNHi Capital) to ensure a host of convenient finance options for our customers.
We offer a wide range of services to customers in the industry, including wholesale and retail equipment financing. This enables us to provide an extra line of credit to current customers who would like to expand their product line as well.
Frequently, CASE introduces attractive schemes to ease the initial acquisition cost for some of our price-sensitive customers. We have seasonal promotions as well as product-specific promotions for example, a 90% LTA, relaxation of EMIs for the first few months, lower EMI options, etc. These schemes are tailor-made depending on the demand, market dynamics, and geographical requirements. And they are all designed to benefit our customers and grow the CE industry.
Many businesses, on evaluating their financials, have realized that it is often better to rent or lease an equipment than buy it.
E. Moses, Vice President – Division & National Head, Kobelco Construction Equipment India
The increasing inclination towards renting equipment bodes well for the segment.
The rental market in India has been in existence for many years but has been mostly unorganized. However, the recent past has seen certain changes which could augur well for the growth of this segment of equipment users. Firstly, many entities have come to the realization that it is not always the best option to ‘buy’ an equipment with the intent of availing depreciation, which used to be the approach for many years. In fact, it was this line of thinking which limited the growth of equipment leasing, under which depreciation was availed by the leasing company.
Now, many businesses, on evaluating their financials have realized that, under certain situations, it is better to rent or lease an equipment rather than buy it. This realization has increased the demand for rental equipment.
The rental market continues to be fragmented.
The rental market is fragmented in terms of the contractual terms, standard of service, applicable rates, etc, which are usually a matter of bilateral negotiations. For example, in most contracts, the hirer provides the fuel, based on actual consumption, while the hourly rates are the same, irrespective of the make of the equipment. This negatively impacts the choice of equipment based on new technologies with better features, especially fuel efficiency. The hirer unwittingly takes the ‘hit’.
Also, due to uncertain market conditions, there are many idle machines, which are offered for rental deployment. This dilutes the overall demand for machines on rent.
At Kobelco, the entire customer support system is focused on maximizing their machine utilization.
For Kobelco, all customers are important. We extend our industry-leading field support as and when required to enable the owners to operate their machines with maximum uptime. Our network of authorized dealers covers the entire country through more than 140 touchpoints. Customers, at even remote locations, are well served. As regards major repairs and overhauls, the company has workshops in Noida and near Chennai. Also, most dealers have repair facilities at their premises as well.
The MYCRANE digital crane rental live platform creates a very transparent situation for the crane company as well as the customers as it enables them to know the credibility of each other via its rating system of each and every party based on their past performance.
Suhail Shaikh, Chairman & MD, Sahil Freight Express & service provider of MYCRANE in India
Using MYCRANE app software and smartphones, crane users can reach a range of registered crane rental suppliers.
At present, the crane rental segment in India is a manual, old-fashioned process that takes too much time. It remains stagnant and continues to operate on outdated and inconvenient methods of procuring crane services.
MYCRANE, a global B2B platform headquartered in Dubai, and now also operational in India, employs professionals with knowledge of the latest technology and a long industry experience. With MYCRANE app software, crane users can submit details of their lifting requirements, following which, they receive personalized quotes from a range of registered suppliers. Thus, MYCRANE, which took over two years to develop, removes the need for users to contact multiple equipment providers.
With a single post, a customer can easily, quickly, and directly receive numerous comparable quotations from various crane companies.
Put simply, crane companies register themselves on www.in.my-crane.com and sign an agreement to become a contractor; while similarly, customers register themselves to place enquiries for their lifting requirement by filling a simple online request form that has been designed to ensure that they receive comparable quotations. The request is immediately forwarded to the registered crane companies, who will respond with a quote for the proposed crane they would use for the required lifting job.
Once the customer decides to place the order with the crane company, a tri-party agreement is signed between the customer, crane company, and MYCRANE. It is as simple as that: there are no more phone calls or unclear quotations to decipher, just easy-to-understand quotes delivered directly to the customer’s inbox. And when the customer needs to change the quote, he simply needs to amend the online request on the website and our equipment providers will be back in touch.
Registration for crane companies and customers is free.
The commercial model of MYCRANE is that once the order is received by a crane company through the platform, a fixed commission is received by MYCRANE from the crane company. This is an absolutely free service to the customer.
The platform is suitable for cranes between 6-ton and 750-ton capacities. Crawler, mobile and tower cranes can all be requested on the site. In addition, MYCRANE team is working on adding new crane types, such as fast assemble tower cranes, gantry cranes, mini cranes, and others.
There are plans to introduce an Online Marketplace to advertise used equipment, rigging equipment, spare parts and auxiliaries and industry vacancies. A news portal allows users to stay up-to-date with the latest industry developments, while, in-house support services, such as engineering and legal consultancy, are also available.
MYCRANE is currently testing a new crane selection tool for the users.
MYCRANE has commenced the testing of a new, universally accessible crane selection tool, which will be offered to the lifting industry at no cost. The selector tool will simplify the life of all those involved in the lifting industry. Each crane has a manufacturer’s crane chart, which indicates the capacity of the crane in certain configurations, allowing the user to determine the length of the main boom, the length of the jib, the weight of the ballast, and super-lift.
Users simply need to insert the radius, the height of the lift, the dimension and weight of the cargo, and they will get the right crane for their lift.
Demonstrating the strength of the new service, MYCRANE recently signed a MoU to cooperate with PESCO Switzerland AG, an EPCM company.
Dorus Everwijn, Managing Director of PESCO SWITZERLAND AG, an engineering, procurement and construction management company headquartered in Zug, Switzerland, commented: “The MYCRANE service is long-overdue. As a leading project management and EPCM services provider active in the oil and gas downstream industry, we welcome the efficiency offered by MYCRANE and appreciate the innovative approach to what was previously a very time-consuming process for all parties. The most valuable commodity we have is time – MYCRANE allows us to save time, while simultaneously accessing a multitude of vendors”.