A well-developed infrastructure is the foundation for growth in any country, as it paves the way for a better quality of life and rise in GDP, especially for developing countries like India. Due to ongoing modifications in the infrastructure, construction and mining sectors, construction equipment has become one of the fastest growing segments. In fact, the Indian construction equipment market is slated to grow more due to the increasing number of upcoming public infrastructure projects across the country.
Shriram Automall India Limited (SAMIL) is ranked amongst the top solution providers for both public and private enterprises. The company has successfully bridged the gap between the buyer and the seller through its innovative platforms, huge inventory of pre-owned vehicles and good quality equipment, available at reasonable rates. Introduced in 2011, the platforms enable a transparent and efficient transaction between buyers & sellers for buying and selling a large variety of construction equipment.
Successful construction depends on the quality and reliable performance of the tools and equipment. But it is not always possible to buy new equipment. SAMIL fills this need by providing pre-owned construction equipment to the end-users that include equipment owners, dealers, individuals and corporates. It has 68 well-established Automalls and over 150 bidding locations in rural and urban areas for providing pre-owned construction equipment of every type and model, at the best prices.
India’s infrastructure sector is currently the focus of the government’s development plans and policies for ensuring timely creation of world-class infrastructure. Initiatives by the government to develop 100 new smart cities and set up industrial hubs through its Make in India campaign, will further boost the CE market. As outlined in the next Five-Year Plan (FYP), about Rs.31 trillion ($454.83 billion) has been earmarked for investment in the infrastructure sector, with 70% of funds needed for power, roads and urban development.
India’s CE sector is made up of five main segments: earthmoving equipment, road construction equipment, concrete equipment, material handling equipment, and material processing equipment. Earthmoving equipment and road construction equipment account for close to 70% of the CE market. Backhoe loaders account for 65% of the earthmoving equipment and road construction segment. The CE segment has witnessed a robust growth in the first half of this year, having clocked a growth rate of over 40% in the last six months.
SAMIL’s inventory of pre-owned equipment include Excavators, Dumpers, Trucks, Forklifts, Cranes, Backhoes, Loaders, etc, besides which, it offers a host of services to the customers. Sameer Malhotra, CEO, SAMIL, says, “We want to make the construction business easy for the owners not only by providing them pre-owned construction equipment and vehicles through our online and physical bidding platforms, but also by providing them easy finance for heavy machinery and services like one-stop solutions, private treaty, valuation, documentation, refurbishment etc. SAMIL is also the preferred company for people who want to dispose off their equipment as they get quick and expert deals, a huge customer data base, and value for money at SAMIL.”
Demand for construction equipment is around 50k machines per year and is growing by 5 to 7 percent. The pre-owned construction equipment market in India was not developed, as earlier, people used to acquire and dispose off their equipment through local dealers and brokers or other personal sources. But over the time, the market has become more structured as many organized players have come into the business, given the financial viability to the buyers. There are 5 big advantages of buying pre-owned equipment:
- Lower Cost: Buying pre-owned equipment is a significant investment as it helps save buyers their own money.
- Finance: Shriram Auto-mall in association with its parent company, Shriram Transport Finance, provides finance to its customers for single or bulk purchases.
- More Choice: SAMIL, through its extensive inventory, provides a wide variety of pre-owned construction equipment.
- Parking Facility: SAMIL offers parking facility across the country at over 70 locations of 1 to 30 acres on a daily, weekly, and monthly basis.
- Availability: Buying pre-owned equipment offers a high degree of flexibility for the buyer’s business, whereas, buying new equipment often entails a long wait for the order to come through, which means a significant loss in value from the time you buy to the time you sell.