Nawa Looking for Export Opportunities

Nawa Looking for Export Opportunities
"After commanding a good domestic market, NAWA Engineers & Consultants are looking for export opportunities. Our future plans are to expand our products applications to metallic and non-metallic minerals," says, G. N. Raju in an interview with SKK.

NAWA Engineers, a relatively young company, has established its credentials well in crushing, screening, material handling, and aggregate plant segment. What are the latest technological developments worldwide in this segment and how these are being incorporated in Nawa product range to deliver technological superior and cost effective construction/ aggregate equipment product range?

Rocks remained as rocks since civilizations. They are the oldest and durable building materials in various forms – natural or mended. They have not changed. What has changed is demand for sizes and gradations of crushed rock to meet modern construction specifications. These pose challenge to the crusher equipment manufacturers all over the world to produce them all in one go. Though it is not going to happen ever, aggregate crushers have come a long way to go nearer and nearer to the aggregate specifications.

NAWA keeps abreast with the latest developments and innovations in the crushing and screening equipment. The Nawa jaw crushers, who are primary crushing machines, are world class with latest developments. They incorporate quick–setting adjustment to maximize productivity. The innovations and accuracies in crushing geometry make Nawa jaws more productive – higher crushing ratio, increased output and less wear.

Many developments have taken place in cone crushers, which are secondary/tertiary crushing machines. They changed from mechanical to hydraulic operation. The long and steep crushing

chambers have been dwarfed to make them short head and compact, and to give material more attrition time in the crushing chamber. The result is a better shape and well dispersed gradation to the crushed aggregates. Frictionless roller bearings have replaced bush bearings to save on energy per ton of crushing. Nawa hydraulic cone crushers are built with all these innovations. They are energy efficient, deliver high output and meant to convert hard and abrasive Indian rocks to well-graded cubical products.

For meeting the stringent quality and gradation profile of aggregates for highway construction, as crushed sand usage and for pumped concrete requirements, one needs to pass the material through a third stage crushing and shaping machine. The contractors and quarry owners over the World found that the Vertical Shaft Impact (VSI) crusher is the only machine, which would remove all their owes in delivering high standard aggregates. The Nawapactor VSI, which works on free-impact rockon- rock principle, incorporates the world-class features is best indigenous solution – frictionless bearings, low energy costs, low running costs, high productivity – to all our customers.

Where are Nawa Engineers factories manufacturing these equipment are located and what is Nawa's complete product range?

Nawa Looking for Export Opportunities
Our factories are located in Hyderabad, A.P. It is the most happening city, not only as an IT hub for many multinational software giants, but also as center of growth for pharma, chemical and heavy engineering sectors.

Technocrat driven medium and small engineering enterprises do exist with adequate skills and machining facilities in Hyderabad, which provide necessary ancillary support for heavy machine building activity like ours. This is an advantage one gets when located in a big city where industrial infrastructure has already been in position.

Our product range covers – Primary single toggle jaw crushers from 60- 600 tph; Hydraulic cone crushers for secondary and tertiary application from 60-200 tph; Secondary gyratorycone crushers from 150-300 tph; Vertical shaft impact (VSI) crushers from 25-350 tph; Vibrating equipment – grizzlies and screens of varied sizes and capacities; Spiral classifiers from 300 mm to 2400 mm diameter to wash and classify 15- 350 tph; Fixed plants from 50-350 tph; Mobile tyre mounted primary jaw, secondary cone and tertiary VSI stations from 90-250 tph; Belt conveyors of all sizes and capacities for bulk handling; Concrete delivery and placement conveyor systems for dam construction- capacity 1000 tph and above.

Recently, Nawa has launched Nawa mobile stations—tell us something about the plant and what has been the market response?

We have added crusher mobile stations to our product portfolio. These were displayed in Excon— 2005 exhibition held in December 2005, at Bangalore. The response from users was very encouraging. Our quality and configurations have received wide appreciation from the users as well as multinational suppliers. We are fortunate to convert quite a few of enquiries into orders. The customers have reposed lot of trust in our abilities and skills.

Nawa mobiles are multi-axle chassis mounted on pneumatic tyres. They are designed to provide maximum mobility and optimum flexibility to the quarry, highways and contracting companies for processing large volumes of road base materials, river gravel or mineral ores. They are road going in fully assembled state, both on paved roads as well as mining tracks, true to our slogan “Nawa Mobiles – Truly Mobile,” driven by standard trailer prime-over vehicles.

Our mobile range includes: a) Jaw stations for 125-300 TPH b) Cone stations for 70-250 TPH and c) VSI stations for 100-250 TPH. All of the mare equipped with Nawa’s proven equipment – grizzly feeder, jawcrusher, cone crusher, VSI crusher and vibrating screens.

Nawa Looking for Export Opportunities

What are Nawa's pre- and postsales technical services, including spare part supply services to sustain customer reliance in Nawa?

We find both pre- and post-sales technical support and service to the customer as the most important things, more so to the aggregate producers. Most of them need a thorough analysis of their quarry logistics and aggregate requirements, and look for assistance in zeroing on to a technically the best flow design and selection of right equipment, and cost wise the most economical. We give utmost importance to this presales assistance, and our marketing and application engineers do thorough study and provide the user with selection of right system and equipment solutions.

We experience most complex and difficult pre-sales tasks in upgradation and modernization schemes of existing aggregate crushing plants. The tasks are most challenging and we take them up with a pride. This is a win over act of our marketing and sales team, who puts in an honest and sincere effort in guiding the customer.

We have a full-fledged service and parts department. Our after-salesengineers are constantly in touch with the users giving guidance and advice on proper operation and maintenance of our equipment. That goes with good business for spare parts. The aggregate business is parts-intensive, more so when your machines are located in abrasive rock zones. Besides periodic change of parts, emergencies occur resulting stoppage of production. We maintain adequate inventories and supply the parts on quick-delivery basis. We continually advice the user what insurance spares he should keep to cater to the emergencies so as to prevent downtime and reduce production loss.

Regular visits are planned by our service engineers to the users’ installations to keep abreast with he health of our equipment, and to keep a track of its deliverance. It helps us to continually improve our machine design for better performance.

Nawa offers complete plants and upgradations on turnkey or semiturnkey basis. So far how many plants have been set up in different parts of the country?

In our existence of five years of operations in the field of crushing, screening, material handling, and aggregate plants, Nawa has designed and installed more than 60 installations. They include complete 3-stage and 2-stage crushing plants, both fixed and mobile, washing and manufactured sand plants for national highway projects, state road projects, dam projects, commercial aggregate production and mineral re crushing. Our installations are spread all over India, and are in operation and being serviced by us in the harshest tracts of Mizoram, Arunachal Pradesh, Bhutan, Jammu & Kashmir, and almost all other states in the North, South, West and East. For our erection crews and service teams, there are no geographical restrictions, and we love to set up our plants wherever they are required and whatever the terrain is.

Nawa Looking for Export Opportunities

Besides aggregate crusher plants, we have successfully undertaken from concept to commissioning of concrete delivery and placement systems for the first time in thecountry. We designed, installed, and are presently operating 1000 tons per hour RCC delivery system for Patel Engineering at Ghatghar HEP, Maharashtra. The system was designed to place roller compacted concrete from zero to 80 m level of the dam, and delivered 4.5 lakh cubic meters of concrete in just two dry seasons between December–May. The concrete delivery touched 70,000 cu.m per month during the peak season.

What are your views on the budget as related to construction equipment sector and your wish list for the benefit of industry?

Our budgets in post-liberalization era were never pro-indigenous machine developers or heavy engineering industry. Our tax regulators’ priorities have been on import duty concessions, and meet the deficit revenue by higher taxation on domestic production. Now a construction company, when he buys equipment from a domestic supplier, should pay VAT at 12.5%. If he imports the same equipment, he need not to pay any sales tax or VAT. The sales tax being a state subject, there was never a thought given in the central budget to safe guard the interests of indigenous manufacturers the price disadvantage he faces against overseas supplier on this count. It is not fair that lawmakers should introduce a levy on imports, similar to countervailing duty in lieu of xcise duty, to equalize effect of VAT leading to a level of field of competition. There is no scope for construction companies to take value addition set off in their production activities. Hence 12.5% is a huge cost that the user incurs when he buys indigenous equipment compared to imported equipment, putting indigenous manufacturer at great disadvantage.

There are duty-free concessions given to construction companies when they import certain types of equipment for notified infrastructure projects like highway construction. For example, cone crushers for aggregate crushing can be imported duty free irrespective of source of funding, either funded by World Bank/ADB or internal resources, for the highway projects. Should not GOI levy countervailing duty in lieu of excise duty on such equipment as a fair deal to the domestic manufacturers? An indigenous manufacturer when he sells a cone crusher to same highway project, he would pay the exchequer 16% as excise duty and 2% as educational cess. I wish, and it is only fair that the Finance Ministry would consider waiving the excise duty on such indigenous equipment supplied to notified projects for which they have granted exemption of hundred percent of import levies. Or FM should consider a levy of countervailing duty in lieu of excise duty on duty-free import list and only allow exemption on basic duty.

What is Nawa’s future plans?

We are very quality conscious, and are thriving to achieve quality standards followed by advanced countries. We have achieved a great deal on this count. There is still much to improve on quality. Our immediate future plan is to achieve this quality goal.

In the nearest future the plans are to expand our product applications to metallic and non-metallic minerals, beyond the hard rock crushing wherein, we are presently serving construction and quarry sectors.

We are looking for some export opportunities. There is good market response from the Asian neighboring countries and the African nations, and our exploration is on.

NBMCW May 2006

Service Driven Engineering

Service Driven Engineering
Mr. Sumit Mazumder, Vice Chairman & Managing Director, Tractors India Limited, describes his concern as a service driven engineering company. In an interview to P.P Basistha he highlights the competitive positioning of TIL as an equipment manufacturer and distributor and on the present growth trend of the construction sector.

How do you view the present growth trend of the Indian construction sector. Do you expect present the slowdown to pass through necessary corrections to gain its earlier momentum?

The present slow down has been led primarily by the cost escalations of raw materials, notably steel and cement, which constitutes the vital input for construction both in real estate and core construction. However, I well understand that the slowdownphase would be very much temporary as the government remains committed to achieve the 9% GDP growth target. It is very heartening to see that to achieve the growth target the government has been taking full scale measures to reign in inflation in terms of duty adjustments and combating upward price movement in cement and steel. But however, I would like to point out that, till the situation gets corrected led by slew of measures from the government, ongoing projects face a slow down in project executions, as funding interest rates continue to rise. Moreover, led by inflation there is skepticism in certain funding quarters on the commercialviability of the project. This in turn is leading to slow release of funds by banks and financial institutions to the contractors. The issue should be addressed at the earliest by the government as it is a matter of concern.

Concurrently, led by wholesome fine tuning of measures to curb inflation, initiative has to be undertaken by the government to further integrate the rural and urban infrastructure growth. This would make the growth of the construction sector total and in turn drive the whole some demand of construction equipment. I understand the initiative is well underway by governments’ initiative to develop the rural roads through initiatives like “Pradhan Mantri Gram Sadak Yojana and for urban infrastructure through Jawaharlal Nehru Urban Renewal Mission etc. But being a member of the construction equipment manufacturer and distributor fraternity, I would like to highlight that to execute greater number of projects, the contractors have to continuously bring in newer technologies for project execution. This will lead to development of more projects, which in turn would drive the demand of equipment in a bigger way.

Do you find that there is further scope in making policy adjustments in sector specific to facilitate further private sector participation for infrastructure development.

I would say that whatever policy adjustments are being made has to be wholesome by taking into considerations all the stake holders interest in development and operation of the project specific across the sectors (as the government has been laying emphasis on PPP and BOT projects). Overall, I would say that the policy adjustments have to be market driven rather than politically driven.

As you mention that contractors have to bring in newer technologies for faster project execution, which will make the project turn round faster resultantly, enabling the contractors to focus on newer projects. How do you propose to develop the market on the same through offering technologically advanced products?

Ever since its existence since 1944, the endeavour of TIL has been made technologically advanced products for the market based on product offerings through technological and distribution tie-ups with world leaders in material handling, construction and mining equipment and power solutions. Taking the practice further, the tie-ups would allow us to place cutting edge technology products.

Our material handling division enjoys wide range of collaboration with global leaders such as Grove World Wide, USA (part of Manitowoc Crane Group USA) to provide manufacture, Paceco Corp, USA (part of Mitsui Engineering and Shipbuilding co Japan, and Famak (Poland) and the much recently entered Hyster USA, making composite technology and sourcing point for customized material handling solutions. Through the tie-ups TIL leverages the industry standing of its international technology associates to provide a wide product range across 20 models in mobile cranes, lorry loaders, reach stackers, electrical luffing cranes and rubber tyred gantry cranes.

On the other hand our construction and mining equipment division and power solutions division acts as a dealer for Caterpillar products across the geographic locations of North and East India, Bhutan as well as Nepal. Through the distribution tie-up, TIL leverages the industry standing of its principal Caterpillar and provides the widest range of products (estimated at 40 models) across the down stream segments in construction through: excavators, motor graders, wheel loaders, dozers, tandem rollers, paver and backhoe loaders and in mining through: dumpers, dozers, wheel dozers and graders. A select number of products from this division enjoy the largest market shares in their respective product niche. The motor graders enjoy a market share of over 87 percent while the wheel loaders enjoy a market share in excess of 51 percent to mention a few. The competitive strength of the division lays in its advanced technology product offering having less equipment downtime, enabling the customer reap maximum benefit on his return on investment.

This is coupled with wide range of responsibility covering the entire client engagement lifecycle ranging from procurement, marketing logistics, commissioning and after sales service.

While the power systems solutions division distributes diesel and natural gas gensets. The superior and world class brand image of Caterpillar and the vast product portfolio represent reliability, durability flexibility with the product range from 12kW to 10,475 kW in diesel an 11kW to 6,500 kW rating in natural gas gensets. I would reassert the tie-tieups would allow us to offer technologically advanced products. On sustained offering of technology advanced products, I would like to inform that Caterpillar, our principal, has announced a 2020 vision for its increased presence in India, which will translate into a wider portfolio of products that will be marketed through us in addition to extensive business support.

How would you balance offering of advanced technology products dovetailed by competitive pricing?

For our own products, that is the material handling equipment, we have laid emphasis in incorporating advanced manufacturing techniques. This has to a great extent allowed us to pass the cost benefit to customers apart from increasing our production capacity. In addition to bringing in new manufacturing process, we have continuously brought in new state- of-the-art technologies like plasma cutting machines balancing machines, this has improved the product quality and its pricing. Additionally, we have laid emphasis on product indigenisation through product reengineering. Indigenization has been done in hydraulics, motors, pumps, apart from modifications in design etc allowing us to pass cost benefit to the customers.

However, our distributed Caterpillar product comes with a global brand equity, making them expensive but superior in quality. We lay emphasis in informing and educating the customers on the initial high cost of the machines checked by its low operating costs owing to its advanced technological features. I believe the customer gets convinced on the same and opts to go for a quality product.

On business expansion. what are future plans in the direction?

We have well laid business expansion plans. We are setting up a new material handling equipment plant near Kolkata on an area of 200-250 acres. Land acquisition process for the plant is underway. The plant will produce port handling equipment, rubber tyred gantry cranes etc. The new plant has become a dire necessity for us to capitalize the burgeoning demand requirement of cranes from the market, as capacities in the existing plant has almost reached a saturation point.

Next, I would like to highlight that we are bullish on the equipment rental market. The construction equipment rental market in the country is presently largely unorganised, this presents ample scope to provide qualitative services in terms of quality maintenance offering for the equipment, in which TIL has a strong edge over others apart from diverse nature of equipment offerings. Through our rental stores, we would retrofit and rent out Caterpillar equipment across the value chain.

Presently, we have seven rental stores across the country , in places consisting Delhi, Udaipur, Chandigarh, Lucknow, Bhuwan– eshwar, Kolkata, and Assam. Besides, we are in the process of coming up with two more outlets at Barbil and Ranchi. Across our rental stores, we have a total fleet of 130 equipment. We intend to enrich the fleet size by bring in range of other equipment for a wider customer base, apart from our present Cat distributed products. This would consist, Caterpillar compaction equipment, concrete equipment, power trowel, walk behind rollers, pressure washers etc.

Service backup placement?

With being synonymous of being a core engineering company, we are much service driven company led by well placed service networking skills. This is imperative to service global as well our own equipment brands across the value chain. Our four regional offices in Kolkata, Delhi, Mumbai and Chennai and 45 sales and support locations offer us a strong standing from the sales and service point networked by Oracle ERP software solution. The service network is backed by 400 strong engineers.

Our service component involves, pre-purchase consultancy, equipment investment analysis, engineers on call for site visits, component repair, complete machines rebuild, ready parts availability and capability development. Out service component also includes, maintenance and repair contract to provide guranteed equipment availability at a fixed cost with the objective to deliver the highest asset utilization over the product lifecycle.

NBMCW October 2008

SANY Growing on Customer's Patronage and Innovation

Sen He
SANY Group has always viewed Indian market as one of the most important and emerging one. Sany being a 2 billion dollar company and a leading manufacturer of construction, earthmoving and material handling machines has set up its Indian subsidiary SANY Heavy Industry India Pvt. Ltd. In 2003. Since then the aim of the management is to bring about a responsive, responsible, service oriented organization meeting local needs and conditions. Right from inception SANY has been growing at very fast rate due to customer's patronage, satisfaction and innovation. Today, we have multiple product range and have satisfied reference customers having big fleet and repeat purchase, said SANY India 's Managing Director and CEO Mr. Sen He and Chief Marketing Officer Mr. Brahmanand Pandey, in their free wheeling interaction with NBM&CW.

SANY has a wide range of products to offer such as concrete pump, truck mounted concrete boom pump, boom placer, concrete transit mixer, concrete batching plant, asphalt batching plant, roller, asphalt paver, motor grader, tyre mounted crane, crawler crane, and stackers which are being used on all the prestigious and big sites in the country.

Brahmanand Pandey
Mr. Sen He opines that SANY brand has become popular in Indian Construction Industry. SANY concrete pumps have been deployed on the work site of the tallest buildings in Mumbai. Every year the organization is growing at a rate of 100% and looking forward to expand and participate on the growth opportunities in Construction and Infrastructure segment. Sany's plant in India is being built in Chakan near Pune with an investments of US$60 million to roll out concrete pumps, boom pumps, transit mixers, motor graders, and crawler cranes.

To position SANY India and to capitalize on the growth opportunities in Infrastructure segment and to have more emphasis on the emerging market, company has already set up Research and Development (R&D) for planning manufacturing India specific products as per Indian markets needs and freezing customer–friendly specifications. As construction industry professionals are well aware of the importance of quality of product & services quality at all levels SANY takes care of this aspect.

SANY is today a No.1 manufacturer rolling out the Concrete Pumps with latest "S" Valve technology giving productivity, reliability, and lower maintenance cost. Sany people have worked very hard in bringing respect to the "Chinese Sourced" equipment. Today, customer treats "Chinese sourced machines at par with rest others. Sany's order books are full with orders for crawler cranes, boom pumps, pilling rigs in addition to regular product rangelike concrete pumps and motor graders.

Explaining SANY's marketing strategy and its supporting sales network, Mr. Pandey said SANY has its strong sales network all over India . Currently, company operates from 10 locations with sales, service and parts support. At project sites dedicated Engineers are posted. Shortly at other strategic locations outlets are being opened. The dealer network also is being set up to add coverage and also reduce the response time. Genuine parts are kept in major locations close working with OE suppliers also taking place to give combined support.

SANY has set up a highly dynamic HR system, making career plan for employees, providing training and attracting talents pool. The blend of Indians and Chinese experts are delivering a dynamic organization which vibrates with energy, he added.

Talking about company's focus on India Mr. Sen He said that his company has an objective to give India Best of the Products. In the last few years, SANY India has made its significance presence in the Indian market with its products and services.

The company is well poised for growth trend and to realize the growth momentum of the country.

SANY India has started tapping the vast opportunity that Indian economy is offering and now they are geared up and building more customer focused service so as to emerge as the Industry leader in its range of products. The prime goal of the SANY India is attaining the level of customer satisfaction which examines performance of their people.

SANY's motto "All for customers and all from Innovation" is the driving force stresses Sen He. Speaking about SANY brand, Mr. Pandey said, SANY brand is known for the highest quality level maintained on their equipment. The reputation of SANY lies in its high reliability. SANY has established a strong research and development centre and in SANY, it is an ongoing process of continous innovation and improvement in quality. Sany is accredited with ISO 9001, ISO 14001 and OHSAS 18001. Sany equipment are fitted with the latest safety gadgets available in the International market. The safety gadgets fitted on SANY equipment ensures the highest safety levels to the persons working on sites where SANY machines are operated.

SANY has established regional offices along with the area offices to maintain the machines operating in the particular Area/Region. Sany is Equipped with a strong service teams operating at Area/Regional levels and SANY service personnel are available at call on All India basis within a very short notice. SANY India has also setup Warehouses in the Regional/Area locations all over India.

SANY Construction Equipment are environment–friendly and the components/assemblies used in Sany confirm to the most stringent Norms like Euro II/Euro III. Sany equipment also confirms to the CE Norms. SANY equipment are accepted worldwide especially the most advance/ developed countries in the world.

The most important projects where SANY has been involved worldwide including India are: World Finance Centre–Shanghai, China (one of the tallest buildings in the world), Hong kong Finance Centre–Hongkong (one of the tallest building in the world), Beijing Olympic 2008 Village–Beijing, China, Three Gorges Project– China (the largest dam in the world), High Speed Maglev Train–Shanghai, China, Hangzhou Bay Bridge–Near Shanghai, China (the longest Bridge in the world), Tibet Qinghai Railway Project, China (highest altitude railway), The Tallest and the most prestigious residential building in India.

NBMCW May 2008

Need for a Single Window Clearance for Road Projects and Simplification of Import Regime

"There is a need for a single window clearance to enable NHAI secure various facilities. Procedure for duty free import equipment related to road sector be further simplified and made available to contractors at a short notice. Construction equipment and machinery from China is proving their utility in the road sector in India," says Mr Rakesh Raina of PVS Impex in an interview with S. A. Faridi of NBM&CW.

How do you look at the present market scenario of Indian Construction Equipment Industry and its future growth in view of current focus on Infrastructure Development?

Government is upbeat about development of roads in India and has been taking various initiatives for speeding up the work. The volume of work is so huge that it will throw lot of demand for road construction machinery in India. The indigenous manufacturing industry needs to gear up for offering latest state-of-the-art technology machines to meet up with this demand in coming times. This will also create enough demand for imported machinery. The contractors now need to have more choice for selection of the equipment meeting their requirements. The work required is huge and the Indian road Industry will grow at 15–20% per annum for at least next 10 years.

Are government policies conducive for implementing the road construction projects and also import of Construction Equipment in India, What enabling provisions are needed?

Well, Government certainly is trying to give it a push, knowing fully well the quantum of work involved. The road packages being offered are becoming bigger; Government is also laying special emphasis on development of roads through private sector participation. Having said that I feel Government still needs to create a single window clearance to enable NHAI secure land, arrange for utility removal and forest clearance in a time bound schedule and before awarding contract to bidders. We still find various projects get delayed on account of these issues causing time and cost over runs. The NHAI should be authorized to settle with respective state governments in a time bound schedule and without any political and bureaucratic interference.

We appreciate the Government initiative in allowing contractors duty free import of some specialized road construction equipment. The procedure for duty free import of equipment related to road construction should be further simplified and made available to contractors at a short notice. This will allow contractors to have wider choice in mobilizing their equipment requirement well in time. Government should also continue to extend its duty exemption to enable contractors/sub-contractors to have wider and better choice for executing the road projects without time and cost over runs.

Tell us about your Company and the product range of the Huatong-China offering to Indian Market?

Well, PVS is involved in infrastructure related projects and we represent top international companies in Power, Steel and Road infrastructure sectors. In road sector we represent Huatong, which is one of the biggest exporters of Road Construction equipment in China. Our principles have now exported their products to more than 25 countries including India. Our principals are also excited at the potential being offered by Indian market though would like to see fast decision-making. We are presently focusing on Asphalt pavers, Batch type hot mix plants, concrete batch plants and Milling machines for Indian market.

How do you see the potential of the Indian market in context of your business?

Well, we have been representing Huatong for the last two years in India and have our own success story. The myth about Chinese technology being not at par with European manufacturers is getting rectified with many Chinese companies now focusing on Indian market and proving the products and services. The contractors who have used these equipment can see the value for money proposition. There are so many manufacturers of construction equipment in China and yet, we need to select the right ones which are capable of providing reasonably reliable equipment and services. We surely feel Huatong Brand will go a long way in providing this Value For Money proposition to Indian contractors community.

What is the most important technical USP of your product range?

The equipment which we are offering are based on technology transfer from reputed international brands like Niigata, ARAN and further incorporating the in-house technology upgradation over a period of time. The equipment which we are offering in India are equipped with most of the critical components like engine, hydraulics, sensors, mixers, burners etc. sourced from renowned international manufacturers and already being used in India. Besides the reasonably good quality, our equipment are price competitive.

How would PVS Impex go about tackling a fiercely competitive construction equipment market?

PVS role in marketing Huatong range in India starts with selection of equipment models that are compatible with NHAI/ MOST specifications and meet the contractors’ requirement. We are also guiding our principals about the aftersales requirements in Indian perspective. Chinese are fast learners and let there be no mistake about their capability. Since the infrastructure development in China started a decade before than us, their industry got an opportunity to adapt to new technology and develop their machines accordingly. Huatong surely can make a value proposition in this endeavor by supplying its well-proven technology equipment to its Indian customers.

What after sales service system are placed in your company to ensure prompt deliveries and efficient services to your clients?

PVS has its service engg based in India. PVS has plans to augment the service set up with more and more number of machines coming in. Our Principals keep on deputing their service specialists to India on regular basis and so far none of our customers have any complaints.

I will also like to mention that there is complacency in Indian contracting community in regard to operation and maintenance of the specialized equipment. It is high time that contractors must develop their own infrastructure to run these equipment efficiently rather then totally relying on manufactures. The growing demand of equipment will result in manufacturers focusing more on their manufacturing efficiency and developing marketing channels for their products. The aftersales service will be outsourced with time and may become uneconomical for contractors.

NBMCW March 2006

India Is A Huge Market for Rebar Processing

India Is A Huge Market for Rebar Processing
"We are number one in the world and have 50% market share in India, whereas 25% globally. In India, there is a huge potential, all areas of rebar processing have a great demand. The trend of processed steel will be changed, from job site to service centers, in the years to come. Indians are more open to Innovation and technology," says Mr. Massimiliano Corinaldesi, Deputy Sales Manager, and Schnell Italy in an interview with Rajini Shankar.

Tell us the brief history of Schnell as a group, and the journey of the thirty people’s dream to turn a dirty, hard and difficult job of rebar processing, into a modern, organized and technology-driven activity.

Schnell was founded in 1962, as an engineering company. Main activities at that time involved designing and manufacturing of machines suitable for rebar cutting and bending on the job sites (that was prevalent in that period). From 80's to 90’s Schnell has been involved in solving the problem concerning cage–assembling, creating the first machine suitable for the automatic assembling of stirrups, and using this method, achieved 60% of cost reduction in assembling.

2002 decreed Schnell’s technology leadership, due to the conception of solutions absolutely new and patented, far more innovative than anyone’s expectations.

Tell us about your products in brief and their applications.

Concerning our role, first of all we prefer to speak about solutions rather than products. Actually our definition is Consultants rather than Sellers: The customer shows us his needs, we analyse them, value and speak with the customer and once we get all the information, we provide the proposal, as we are the customer.

Are you into any other by-product of steel besides rebar processing?

We are a group of 14 companies, 7 in production, 1 in software development, and 6 are service providers all over the world.

Our dream is to have a fully automated factory to reduce manpower, and increase production with the same heads.

Tell us the advantages and disadvantages in manual cutting and bending of bars vs. automated cutting and bending.

There are clear advantages in the automated system of cutting and bending. It ensures high volume of production in minimum time. Since the machinery is fully automated and fast, execution time can be saved, and the Inventory holding time, can be reduced considerably. Wastage of steel is minimum, as steel in coils are used for Stirrups and for Cutting and bending rods below 12mm, an optimizing software is used to reduce the wastage in straight bars. With space constraints everywhere, the process will help execution of steel work in minimum time and Bar bending labor at site, would be required, only for tying. There is no necessity to provide large working and storing area, labor camp and security for materials. Expenditure on all these areas is eliminated. Creates centralized activity for multiple locations. This can improve costing and productivity.

Give us an account of your software areas, brief highlights of each module, and its application.

With reference to the raw material worked by our customers, according to its structure, it has two problems: scraps and certification. Several years ago, in order to help our customers solve this problem, Schnell Software had been set up, and its main product was a managing software to be used by companies which belong to the reinforced concrete steel sector. The base modules, called Graphico and Optimo, allow the managing of the equipment directly from offices. In real time, this system controls everything that is connected with the rebar processing activity.

Furthermore, there are modules which can interface with the company–managing software, structural–calculation software, and a third module, which allows the Technical Production Manager/owner to control the situation from his computer, enabling him to monitor the processing of the orders, according to the machine or the operator.

Give us a peek into Schnell’s R & D division, quality norms and training, what is its current emphasis on?

Schnell’s current thrust is in process coiling and assembly processing. Schnell is a UNI ISO 9001:2000 certified company, besides that there are a lot of certified procedures pertaining to each department in the company, which are continually updated with its development.

We impart training to our workmen on a regular basis, twice or thrice a year.

Who are your prestigious customers globally, and in India?

The list regarding our important customers, on a worldwide scale, is too long to be provided, we’ll risk to forget some important customers, however to list a few, the following are our prestigious customers worldwide, but we are the global leaders in this sector. Gerdau Group (Latin America, USA) Miniera Group (Latin America, USA) Murray & Roberts (South Africa), Al Faisal (Saudi Arabia), G2 International (UAE), Toami (Japan), Onesteel (Australia), Smorgon (Australia), NatSteel (Singapore), Armacentro (Spagna), Snaam (France), G&J Ferreterias (Colombia), Gruppo Improm (Russian federation), to name a few In India, we have served Larsen & Toubro (3 plants), GKS, Indu Project, Krushi Rebars, and so on.

What is the Indian position and the global position of Schnell on the map of rebar processing. What's Schnell’s Corporate ‘Vision’?

Our dream is to turn rebar processing–a dirty, hard and difficult job–into a modern, organized, clean and technological industrial activity, something for the businessmen and workers of our times.

We are Number one in the world. We have 50% market share in India, and 25% globally.

Future plans for Schnell global, and the India office.

Global plans for Schnell, is to set up an office at Teijin near Beijing, China. A production unit to be set up in India, most likely in Hyderabad or Mumbai, to produce ten machines per month.

Any other comments you wish to share with us?

In India, there is a huge potential, all areas of rebar processing have a great demand. The trend of processed steel will be changed, from Job site to Service centers, in the years to come. Indians are more open to Innovation and technology.

NBMCW October 2008

Metso Minerals’ Vision

"Metso Vision is to become the industry benchmark, and goal is continuous improvement of our customers’ satisfaction. We are in the process of bringing best products and processes for Indian customers," says Vishnu Kadekodi in his interview with S. A. Faridi.

Under its proposed expansion plans, Metso Minerals proposes to increase the production of its mobile crushing units. Kindly furnish us more details about your expansion plans.

Metso Minerals announced its expansion plans last year at Excon— 2006. Under the expansion mode, our factory in Haryana and foundry in Gujarat have proposed to increase capacities to meet the demand of the industry. The Company expects to grow at around 20 percent CAGR basis. The capacities in foundry have already grown to 2000mt from 1200mt last year. The manufacturing unit in Bawal, Haryana, has also increased its production to 60 mobile crushing plants per annum from 20 units. We are also in the process of optimising our resources to enhance capacities and deliver faster to our customers. The operations have been strengthened with manpower to meet the growing boom in the sector.

Please let us know the details of your new service contract plan for your customers. What are the aims and objectives of the contract services and the need for introducing this service?

It is based on lifecycle relationship concept. The basic premise of the concept is that our customers know their job best and we know our machines best. This knowledge should translate in overall benefit for the customers. The knowledge base in the country is still in its infancy, and it calls for lot of support from the product and service supplier to the customer at every stage. A service contract from Metso Minerals enables customers to eliminate the concerns of availability and they can focus on the operations.

The contract also enables them to get online attention, spare and wear parts stocking at site, process knowledge and a greater availability of the plant with lower O&M cost.

Your Company is one of the leading players in mobile crushing and screening systems. What are the latest developments world-wide and how these are being incorporated in Metso Mineral product range?

With the shift in technology and shorter timelines for project execution, customer is demanding bigger mobile plants with the features of fixed plant. Customer is demanding the best of mobile and fixed plant coupled together in the new category. Worldwide, we are building bigger capacity mobile plants and the same is happening gradually in India. We recently launched 300TPH primary mobile plant and are building the secondary and tertiary plant on wheel to match the primary section capacity. We have also launched new conveyor designs which are proven, cost effective, and modular.

Tell us something about Metso Minerals, its manufacturing facilities, their locations and product range?

Our manufacturing unit in Bawal, HSIDC in Rewari District, Haryana, is spread across 32,000 sqm. The unit is a 100% owned manufacturing facility of Metso Minerals and was set up in 1998 to cater the needs of aggregate and mineral processing requirements of the Indian market. Our operations in the factory are ISO 9001:2000 certified. With a highly skilled manpower for various applications our factory manufactures a vast range of our products from mobile crushing plants, mineral processing equipment to slurry pumps manufacturing.

Our foundry in Ahmedabad was set up in June 2001 and it caters to chrome castings for new equipment manufactured at the factory, manganese wear parts for Jaw crushers (both fixed and movable) and cast steel/ low alloy steel for crushers, ripple flow screens and classifiers among various other applications.

Some of our manufacturing units globally are located in Macon (France), Tampere (Finland), Waukesha (USA), Sorocaba (Brazil), Matamata (New Zealand), New Castle (Australia) and Sala (Sweden).

Inspite of the fact that Metso equipment are costlier than the alternatives, being very sound technically, they are preferred. How does the Company maintain such a level of innovation on products and services to offset price difference?

We can state that one should evaluate any equipment based on its life time O&M cost. Metso invests heavily in R&D and keeps upgrading the machines and process. We take customer feed back seriously and incorporate the same. As our country has skipped many steps in technology, it is important to give world class service support to world class product.

Your Company is one of the front-leaders in providing mineral process systems spearheading many technological developments. Can you list out some of landmark developments initiated by your Company which have been pacesetters for the industry?

Metso Minerals is the worlds and India’s leading supplier of services and equipment for the mining and minerals processing industries. Our product range covers grinding, classifying, enrichment, materials handling, slurry handling, thermal drying, and wear protection. Metso Minerals in India has been:

First to deliver the largest Lamella thickener in the world to National Mineral Development Corporation (NMDC).
  • First to deliver the largest benefitiation plant for iron ore processing
  • First to deliver a coal washery plant for private sector in India
  • First to supply High Gradient Magnetic Separator (HGMS) for iron ore processing
  • Largest installation of pressure filters for dewatering from iron ore
  • Single largest order for slurry pumps in the world for an Alumina project
  • Largest installation of pumps in the Alumina industry in India
  • Pioneered the concept of slag granulation pump in steel industry.
Besides that Metso’s technology to upgrade the low grade iron ore fines and slimes is unique proposition for our customers. Low grade iron ore fines and slimes has been a problem as there were very few customers. These have been piled up as mountains or slime ponds over the years creating environment problems in addition to revenue losses. Metso is now providing technology by which these fines and slimes can be processed and upgraded to a BF/DR Grade concentrate suitable for pelletisation. More than 75% of the material, which was sitting as waste, can now be used as a product. The technology being adopted by Metso Minerals is beneficiation through a combination of gravity and/or magnetic and/or flotation circuits.

It means a lot to our customers and the environment in terms of:
  1. Less mining as recover increases
  2. Conservation of iron ore
  3. Less disposal
  4. Smaller tailing ponds
  5. Less water demand
  6. More money for our customers
What is Metso Minerals vision to romp up its sales turnover in the next two-three years encashing on the emerging opportunities in the construction and mining sector?

Metso’s vision is to become the industry benchmark and our goal is continous improvement of our customers satisfaction. Our solutions best meet the customers’ needs throughout the life cycle of their processes and production equipment. In the coming years, we will aim to give most optimised cost effective solution to our customers, bench mark on existing installations, pass on the worldwide knowledge to the customer and bring new technology and automate the plant and the process. As mentioned earlier we are expecting to grow at 20% on an annual basis. We are in the process of bringing in not only the best products but also best processes for the Indian customers. By being our business partners, customers not only get best products but also get Metso’s global knowledge in the process.

NBMCW May 2006

Metso Bullish on Investment in India

Metso Bullish on Investment in India
Please tell us something about Metso Corporation’s global operations, location of its manufacturing facilities worldwide, business operations across the globe, net sales achieved during this year, and market share it commands today.

Metso is an international technology corporation that serves customers in the pulp and paper industry, rock and minerals processing, power generation and other selected industrial sectors. Metso Corporation comprises three business areas: Metso Paper, Metso Minerals, and Metso Automation.

In 2007, Metso Corporation’s net sales totaled over EUR 6 billion. It has business operations in approximately 50 countries, and has almost 27,000 employees. Its biggest production facilities are located in Finland, Sweden, the United States, Brazil, China, France, Germany, South Africa, Italy, and India.

Metso has been in the news regularly for the last six months or so with ongoing developments like setting up of an R&D centre in Tampere, Finland, big orders obtained from companies in South Africa, Brazil, and Canada. What is more brewing at Metso’s end which can be shared with us.

Metso has witnessed continuous solid growth in emerging markets, which last year accounted for 43 percent of all orders received. All in all, Metso’s business volumes in these markets have more than doubled since 2004. We believe, it is only a matter of time until these areas account for the majority of our business. We expand our operations in areas like China, India and South America where our customers are experiencing strong growth. India is a high priority market for Metso and our business has grown rapidly in the past five years.

What are Metso’s growth plans for Indian market?

India is one of Metso’s fastest growing markets. The country ranks very high in our strategy which emphasizes the increase of our global presence. Apart from catering to the domestic customers, we are considering steps to establish India as a sourcing base for its operations in Asia.

We expect orders from India to grow significantly in the next three years. So far, a large part of our business in India comes from the road development sector. In the near future, we expect a new wave of business to come from emerging areas such as development of Special Economic Zones and other real estate projects, airports, and commercial aggregate segments. Most recently, our growth has been rapid in India.

Metso’s Growth Strategy in India has been largely successful due to factors such as local management, continuity of investments, flow of technology and focus of service here.

What are the kind of investments have you made in India till date?

We have invested close to 41.7 m Euro in the last one year alone. Our recent investment in India is towards expanding our manufacturing base. This also includes investment of Euro 30 million by setting up Metso Park. After further study of the growth trends in India, Metso will make more investments. Apart from catering to the domestic customers, Metso looks at India as a sourcing base for its operations in Asia.

What is Metso Park and what is the progress on the same?

Metso is setting up a new 49-acre multi-functional industrial facility called Metso Park, involving an investment of close to EUR 30 million. This will be set up in Alwar, Rajasthan, and is one of the biggest organic growth investments by Metso Corporation.

A first of its kind for Metso, this industrial park will not only cater to the demand of the Indian customers but could also help meet sourcing demands of Metso companies in other countries. The Metso Park facility will be fully operational by the year 2010 and we plan to eventually employ close to 700 people. The new facility will host both Metso’s own operations and those of a few select partners. Metso will have partners of both Indian and European origin operating out of Metso Park. The Metso suppliers and partners will make additional investments into the Park which will be over and above the investment by Metso.

How important is Indian market in your Asia growth strategy?

India is a large market with high economies of scale with local market characteristics. Metso’s strategy is to establish a substantial local presence in all the main markets to continuously enhance our service to our customers.

We believe, India will play a vital role in the development of Metso’s global business. We are considering steps to establish India as a sourcing base for our operations in Asia and are strengthening our manufacturing and operations base by setting up ‘Metso Park’ in Alwar. This industrial park will not only cater to the demand of the Indian customers but will also help meet the demands of Metso companies in other countries. India today is ahead in Knowledge Process Outsourcing and it will become a strong basis for our expansion here, so whether manufacturing is increased or not India would stay ahead in global engineering and research outsourcing.

How much do the services business contribute to your overall revenue?

When we enter into a relationship with customers, it’s a partnership. After joining hands with our customers, our relationship is built on extensive know-how and longterm commitment where Metso’s service capability plays a big role. Metso’s goal is to provide solutions and services that improve the productivity, usability, and quality of their customers’ production processes. Our pursuit of improving the productivity and competitiveness of our customers’ industrial processes through their entire life cycle is built on three corner stones: in-depth knowledge of our customers’ core processes, automation expertise and large base of installed machinery and equipment.

In an emerging market like India, the service becomes even more imperative. One of our key goals in 2008, is to enhance our services business in all customer segments and geographical areas. Our services business in Metso Minerals, our largest business area in India, has grown around 50% in 2007 over the previous year. Metso’s total share of services business in 2007 was around 33% of the net sales and our goal is to grow the business over 10% annually.

As an infrastructure company— what initiatives are you taking to provide environment-friendly solutions?

Today’s key global sustainability challenges are directly linked with the everyday work of Metso and our customers. We are using our talent and expertise to advance industrial sustainability development all around the world. A significant portion of our business already involves environmental technology and our intention is to focus our R&D efforts on this front. To reduce the environmental load of our customers, we are focusing on clean-tech innovations, energy efficiency and optimal raw material utilisation and on actively promoting environment-friendly solutions. This comes from a culture of ecoinnovation within Metso. In 2007, over 60 percent of net sales came from our environmental solutions.

Can you share some details in terms of your individual business areas and how your customers in India and across world can benefit from it?

Since Metso set up its own operations in India in 1993, it has served the Indian pulp and paper, power, mining, construction and civil engineering industries through its three business units Metso Minerals, Metso Paper, and Metso Automation.

Metso Minerals’s key customer areas in India are quarries, aggregates production, mining industry, steel mills, construction, recycling and waste management. With nearly 500 customers, Metso Minerals has over 350 crushing plants installed in India in the past decade, including the country’s biggest crushing plant and iron ore enrichment plant. The number of employees of the company increased from 213 in 2002 to more than 600 in 2008. We have recently bagged some big orders and are involved in some key infrastructure projects.

Metso Paper is the leading fullscope supplier of pulping, papermaking and power generation technologies for the pulp and paper industry. Since the mid-1980s, Metso Paper has been supplying fiber systems, paper machine rebuilds and components to the Indian market. The Company’s biggest customer sector in India is the pulp industry, which is actively investing in new fiber lines. Also our power generation solutions are gaining ground and we are planning to establish ourselves with the recent JV with EPT Engineering Services in Chennai.

Metso Automation is the world’s third largest supplier of automation solutions for the pulp and paper industry. Metso Automation, in technical association with BHEL, serves big Indian customers in the energy sector. With more than 150 customers in India, Metso Automation has delivered the max- DNA © Distribution Control Systems (DCS) worth over 12.7 mn euros in India.

Our Minerals business however is the strongest so far in the country due to high demand but in future, we expect our other businesses also to do well.

Please tell us something about your new R&D Centre set up in Finland and its mandate to strengthen the knowledge base in crushing and screening technology and testing services at the corporate and regional level, where its facilities operate.

Metso Minerals’s Research Center in Tampere represents an investment totaling some EUR 3 million and is the largest single investment that Metso Minerals has made in research and development to date. The Center aims to strengthen Metso’s global knowledge base in crushing and screening technology, and research and testing services which benefit global construction and mining markets. The Center includes a state-of-the-art test facility with a fully-equipped rock laboratory for analyzing rock samples. Testing routines will enable Metso Minerals to design crushing and screening processes that are a precise match for customer needs in terms of process capacity, energy efficiency, end-product characteristics and yield. The new center will also shorten new-product development lead-times. It will eventually employ 20 people. The driver behind these investments is strong global demand for efficient and environmentally sound crushing and screening solutions and the overall level of activity in the construction and mining markets.

With construction and mining market becoming increasingly global and India being a major market for Metso, how does Metso blend its global manufacturing policies into Indian market to serve here in terms of energy conservation, environmental safety, ease of operation and other parameters beneficial in Indian conditions?

Some 60 percent of our business can be considered environmental business as defined by the OECD. Our environmental technology comprises products, solutions and services that improve the environmental performance of our customers’ production processes. In environmental technology, the R&D focus is on renewable energy and bioenergy, energy efficiency, water management, recycling and process optimization, emission management and life cycle services. In the services business, we are using advanced materials technology in our new spare and wear parts products. We are seeing great long-term growth potential in environmental technology. In 2007, about one-third of our R&D efforts were directed to this area. In the years to come, the share of environmental R&D will definitely increase and we must also more actively promote our solutions and services on this front. At the same time, we are seeking new ways to cooperate with external research institutes and other technology forerunners.

As world’s leading company in our field we understand that the coming years will require higher performance from equipment and operators, but also greater sensitivity to environment constraints. Exploring for minerals and extracting and processing them have an inevitable impact on our environment. We see a proactive approach to these challenges as central to our own and our customers’ long-term competitiveness.

What are Metso Minerals’ future plans for India? With already three state-of-the-art facilities operating in the country, are there plans to add more or plans to make Indian manufacturing facilities as an export hub for the parent Company?

India is a priority market for Metso and our business here has grown rapidly in the past five years. We aim to efficiently cater to the needs of domestic customers here and simultaneously we are considering steps to establish India as a sourcing base for its operations in Asia.

Our investments in factory and foundry in India will increase the annual production capacity to 500 crushing plants, 1000 vibrating equipment, 1000 slurry pumps and foundry capacity to 7000 tons. We expect orders from India to grow significantly in the next three years. We are expecting a new wave of business to come from emerging areas such as development of Special Economic Zones and other real estate projects, airports, and commercial aggregate segments.

What are the current growth drivers for Metso Minerals in terms of crushing and screening plants sold so far and how do you see the evolution of Indian market in its favor vis-à-vis competition in current product range?

India is the fastest growing market for Metso Minerals. We have grown over 300% in the country over the past four years. In the last five years, we have grown from 237 employees to 700 employees.

With nearly 500 customers, Metso Minerals has over 350 crushing plants installed in India in the past decade, including the country’s biggest crushing plant and iron ore enrichment plant at (location). The Company’s number of employees increased from 213 in 2002 to more than 600 in 2008. We have recently bagged some big orders and are involved in some key infrastructure projects here. We expect to grow rapidly in the Indian market contributing to the success of our customers.

How does Metso Minerals help its customers in India to select right type of equipment to suit their varied and specific requirements?

Our purpose statement– Engineering Customer Success– reflects the direct correlation between our own talent and expertise and our customers’ success. We enhance the competitiveness of our customers and advance sustainable industrial development. We aim to deliver efficient, high-quality and environmentally-sound solutions that meet our customers’ needs. Our efforts are supported by our global network of experts, close and long-term collaboration with customers, and our solid technology and process know-how. We deliver our purpose through our values: customer success, profitable innovation, professional development and personal commitment. Our success is based on customer satisfaction, continuous improvement of our own operational excellence, a global presence and technology leadership. We aim to strengthen our presence near our customers, expand our services business and better utilize our extensive environmental technology expertise.

Are Government’s business and economic policies conducive to the global business operations benchmark of Metso Corporation?

India is already leading to show the way by becoming world’s leading service provider. The increase of service share in GDP has been most impressive. I believe this is the right way to balance service and manufacturing sector in a large population country like India.

Investing in a country’s physical infrastructure can contribute to economic growth, improve human welfare and has considerable potential for directly increasing standard of living. The development of infrastructure requires large investments that cannot be undertaken through public financing alone. Public-Private Partnership can do better in the development of infrastructure, not only because of the size of investments required but because each brings valuable and necessary interests to the project as a consequence. I believe several initiatives have been undertaken during the last 3-4 years to promote PPPs in infrastructure sectors like power, ports, highways, airports, tourism, and urban infrastructure. These initiatives are in the right direction and offer opportunities for us to participate in India’s infrastructure and industrial development.

NBMCW September 2008

Metso’s Up-front Commitment to Technology, Quality and Service

Buying an equipment is not related to its price alone. It must demonstrate best in terms of competitiveness, end product quality, throughput, availability, operating cost, lifecycle cost and stand to the test of emerging environmental conditions, energy, and safety parameters. Metso Minerals in its product range focuses on such parameters, not only in terms of pre-sales but also in post-sales care, including pre-guiding the prospective clients on all aspects from selection, operation, maintenance and training, understanding customers requirements and sharing technical experience with them for a long term relationship. This has been Metso up-front commitment all along. That’s the way the market is headed and we are heading it in all segments of our product range in general and in new series Crushing Plants, the flagship of Metso in particular, which has captured a niche place in the market since its introduction in the country, says Mr. Sudhir Srivastava, in an exclusive interview with SKK of NBM&CW, on the sidelines of celebrations of rolling of 100th Portable Crushing Plant the most comprehensive machine for efficient mobile crushing and screening application.

With the 100th unit rolled out especially for NHAI, while Metso celebrates this milestone event, it also celebrates its vision–upgrading the technological status of the country.

Rolling of the 100th Portable Crushing plant has been indeed a milestone event for Metso. What are further plans to strengthen Bawal facilities to meet the growing demand?

Metso Minerals India factory in Bawal, Haryana, expanded its production unit in April this year for exclusive assembly of NW Series portable crushing plants. Our target this year is to manufacture more than 100 portable Units. The existing bay has been reoriented for other product lines and repair facilities. The new production line is spread over an area of 1080 sq.m. The existing bay with an area of 1800 sq.m will focus on the vibrating equipment, assembly of mineral processing equipment and slurry pumps. The expansion will also cater to our growing business in Authorised Repairs. The overall aim of above exercise is to deliver the equipment in fast and efficient manner. The layout incorporates speed line concept which will help us to build different models with minimum effort. The factory is also being upgraded with latest software to control and monitor the various manufacturing process and to have better interaction with group factories located worldwide. We are adopting the latest and best global practices.

What is Metso overview of the technological developments Worldwide in the area of Crushing Plants and how these are being incorporated in domestic product range with focus on energy conservation, environment, safety, easy of operation, and maintenance parameters?

Like anywhere else in the globe, infrastructure projects in India – whether tunnels, dams, bridges or roads – will be built to ever tougher deadlines and specifications, putting tougher demands on machines. Each machine is today required to deliver more, be more maintenance friendly and should have high uptime. The equipment, systems, and wear materials used to produce the materials for building them must be the best. Metso is building machines with better automation which will help maximise the productivity and minimise the unwanted products. Metso Crushers are built on a platform to maximize performance and minimize maintenance needs. Metso Minerals are focusing on improving productivity, assist operation by higher degree of automation, use energy efficient motors and transmission systems to conserve energy, changes in design and components are aimed at reducing noise levels, safety is a paramount consideration and several measures like dust encapsulation are taken to allow our customers meet the statutory environmental requirements.

How does Metso help its clients to select right type of machines to suit customer’s requirement?

Our understanding of customers operations enables us to offer the best equipment for a particular job. Over the years, globally as well as in India, we have worked hard to increase competitiveness in terms of end product quality, throughput, machine availability and operating costs.

Metso Minerals engineers help customers to balance the raw material characteristics on site with the production rate and the size and shape of the end product they are looking for. Our Bruno process calculation system for example, has become the international benchmark standard in the crushing industry. Our research and test centers provide comprehensive test data on parameters such as capacity, product distribution, and the amount of power required to crush specific materials. Metso India has mapped different rocks available in various parts of the country and shares data with customers so as to design each plant in terms of productivity and low wear cost for a particular rock. We have in built flexibility with the machines and the process to get the best from each plant.

How does Metso maintain a level of innovation on products and services to offset price difference of its product range? What is Metso’s entire product range?

Our solutions cover the entire aggregate production process, including crushing and screening, conveying, classifying, washing and pre-treatment, automation and environmental protection for both stationary and mobile facilities.

Levels of innovation are not only through industry-leading equipment and processes, but also through the best in inspections, wear part replacement, maintenance and repair and training. We deliver the best in terms of long term performance to offset price differentiation, because we believe fewer failures and less downtime mean better life cycle productivity and more profitable business for our customers. Being industry leader, Metso by far have the largest varities of plant in the field and also the knowledge base which is hard to match. All this knowledge translates into customers benefit and lowest life cycle cost for the customer. Metso mainly operates in size reduction machines, dry and wet classification machines, vibrating equipment, fixed, portable and mobile crushing and screening plants and in customer services both in hardware and software.

Demolition and recycling is an emerging new area of application for Mobile Crushers. What are business prospects in this area and how Metso is promoting application of Mobile Crushers in this area?

Factors such as global infrastructure development and high metal prices have increased mining and aggregates production, as well as the recycling of metals. This means, there will be greater demand for Metso Minerals equipment and services, and higher expectations on the part of our customers.

Recycling though is at a nascent stage in the country at this point in time is set to grow as we see more regulations and the fact that ageing of vehicles and such factors are still not at a point where Recycling starts converting into a high volume business segment. We are though confident that this would be a new segment for us in a few years from now.

NBMCW July 2006

Madhucon Projects Making Its Mark in Infrastructure Sector

"Madhucon Projects has made its mark in highway sector, completing 360 km of highway with 330 km in hand. In laying two lane rigid concrete road over a stretch of 1470 mtrs in 24 hours, it has created a record.... The Company has plans to enter into the Real Estate sector... and premium flat construction," says Nama Nageswar Rao in an interview with SKK of NBM&CW.

How do you look at the current development in the highway sector and how the highway sector can be put on fast track?

The current development in the highway sector is quite encouraging as out of the Government plan investment of over Rs.13 Trillian infrastructure in the next 5 years covering National Highways, Urban Highways, Ports, Railways, Irrigation etc. Highway sector alone accounts for nearly 12% i.e. Rs.1.5 Trillion. National Highway Authority of India has speeded up North – South – East – West corridor under NHDP Programme under BoT / PPP scheme. This would result in the Highway sector growing on fast track.

PPP route for development in roads and highway sector has gone well as development model. What further enabling provisions are needed to make it attractive to the investors?

Under PPP route number of developers have entered the highway sector. Government has to consider once again to introduce 10 (23G) section of Income Tax Act which has been taken away in the recent budget. This will go a long way for the developers to have source of getting cheaper funds in developing infrastructure projects. However, the benefit under 801A has to be extended for a further period of 5 years.

Land acquisition, law and order and performance of some of the companies executing the projects are some of the problems holding back the progress of projects. In what best way, these problems can be resolved as per Madhucon Projects experience?

There need to be a close co-ordination between NHAI and State Government for tackling the issues relating to land acquisition, law and order problems.

Please tell us something about Madhucon Projects Ltd., how it had evolved itself to the position it enjoys today; the projects in hand; various systems placed at its end to ensure that projects are completed in time and without cost overrun and also state some of your project success story.

Madhucon Projects Limited has made its mark in the highway sector by completing 360 km of highways. At present the company is executing the BoT projects of 330 km in addition to the cash contracts from NHAI and State governments.

Madhucon Projects Limited has completed the highways ahead of the time schedule in the case of direct cash contracts or back-to-back EPC.
  • Madhucon Projects Limited has completed Chittorgarh-Mangalwar Road of 48 kms length 4/ 6 divided carriageway one year ahead of schedule and earned bonus.
  • Laid 2 lane rigid concrete road over a stretch of 1470 mtrs just in 24 hrs and created a record in the Indian construction industry.
  • 360 km of 4/6 laning on National Highway in the last 5 years and 100 km rigid (concrete) pavement within last 3 years.
  • The Company is at present having Rs.4950 crores orders in hand which consists of highways including BoT toll roads and Irrigation projects. All these projects have to be completed within the period of 48 months.
What are various equipment facilities at Madhucon Projects to execute projects?

Madhucon is at present possessing capital equipment, value more than Rs. 210 crores, which consists of one 410 TPM Metso Mineral’s Crusher, one 200 TPM Metso Mineral’s Mobile Crushers from Finland, Six 160 TPH Hot Mix plants from Lintec, Germany, two 9 M concrete pavers from USA, 12 ABG Bitumen pavers in addition to the Madhucon owns number of more than 400 Taurus tippers, soil compactors, excavators, power curber etc.

What are company future plans, particularly its plan to enter new infrastructure development areas?

The Company is constantly participating in number of BoT/Annuity projects being floated by NHAI and is also entering into the Real Estate sector. The Company has acquired 2 pieces of land in Hyderabad and plans are under way to enter into premium flat construction, 3/4 star hotel and shopping mall.

NBMCW September 2006

An Interview with Kauko Juuri

An Interview with Kauko Juuri
“Together–We have been very actively associated with the Indian Mining and Construction Industry over long years and have gained enormous experience on the specific market demands and local conditions. . . we have already planned a new set of equipment customized to suit this very market,” says Mr. Kauko Juuri, in an interview with S A Faridi.

What economic and marketing fundamental considerations drove these two important entities to become one?

The high demand for mineral and material resources, coupled with a growing environmental awareness and a sharp upturn in the use of recycled and reclaimed materials has made the mobile crushing and screening sector one of the fastest-growing and developing markets in the capital equipment arena. Sandvik recognised the potential of this burgeoning marketplace initially through sales of its own equipment, through feedback from customers using its Tamrock drill rigs and Rammer range of hydraulic hammers, attachments and booms and more recently, through the acquisition of Fintec. Furthermore, Sandvik is a recognised technology leader in the crushing and screening arena and is well- placed to deliver value and innovation to customers. Having recognised the potential of this market sector and the opportunities for horizontal and vertical market integration, Sandvik realised that it needs an even greater presence, one that was attained with the subsequent acquisition of Extec. Together, these combined brands represent the world’s largest and most comprehensive range of mobile crushing and screening equipment.

How the new dispensation as one entity would provide customers a single, wider source of high quality crushing and screening options as efficiently as before?

As a company, Sandvik firmly believes in the strength of its global brand whilst utilising the experience, expertise, and knowledge of the companies it has acquired. As it has proved with its acquisition of the Rammer hydraulic breaker brand, which has just been rebranded as Sandvik, the company is well-versed in utilising this acquired experience and expertise whilst integrating the acquired company into its corporate structure. In Sandvik’s experience, customers appreciate the combination of highly experienced and highly focused brands backed and supported by a globally recognised entity. In addition, the Sandvik mobile crushing and screening equipment line provides excellent synergy with other products in the Sandvik stable including its drilling, loading, and haulage solutions.

What would be the impact of this unique combination on global construction & mining equipment market and resultant marketing gains for the new entity?

The combination and rationalisation of the Sandvik, Extec and Fintec product portfolios has created the world’s largest and most comprehensive line-up of mobile crushing and screening solutions. This provides our customers with a one-stop-shop solution for all their mobile crushing and screening needs, regardless of market sector, application or geographic location.

Of the wide products range of the two companies, what segment of products and services are expected to grow in the present infrastructure boom being witnessed in Asian market and how important is Indian market in your Asia growth strategy?

Worldwide, Sandvik has secured a leading position in the key fields of quarrying, construction, demolition and Recycling by the acquisition of the Extec and Fintec Brands. The last decade has seen a strong growth in India in quarrying and construction industry. The future sees a continued fast spaced growth in these sectors as well as building up the demolition and Recycling business. Indian subcontinent has a traditional strong market in the Mining Sector where the Extec equipment has already established itself as the market leader.

Obviously, as market enjoying massive expansion, India represents a major opportunity for Sandvik mobile equipment, that is why we have invested heavily in providing the local sales, service, parts and logistics support, the market requires.

Your future plans to introduce new products and services catering to India’s specific construction and mining industry requirements.

Both Extec and Fintec have a proud history of innovation driven by the specific needs of their customers. By harnessing Sandvik’s renowned technological expertise, that is something we would expect to continue under the Sandvik name. We rely upon the feedback from our customers, our dealers and our distributors to drive design changes and modifications to suit specific markets, applications and geographies, and we are always striving to find faster, more productive and more profitable solutions for our customers.

Together–We have been very actively associated with the Indian Mining and Construction Industry over long years and have gained enormous experience on the specific market demands and local conditions. Accordingly, with the huge infrastructure and resources now available, we have already planned a new set of equipment customised to suit this very market in terms of streamlining the applications to commensurate with the local conditions, the key being to generate a higher return on the investments. This includes both consolidating the present crushing and screening business with new machine configuration as well as developing newer technologies to combat the new upcoming challenges that are coming to this huge market.

NBMCW October 2008

Quality to Drive Sales at Kawasaki

Kawasaki would be looking at the technically competitive features of its wheel loaders for positioning sales in India. The features make the machines 10 to 15 percent costlier by their price value as compared to other competing products. However, the market would soon appreciate the productivity of the machines linked to its higher price value, said Mr. Masahori Mikami, Senior Manager Sales Department, Construction Machinery Division of Kawasaki Heavy Industries Division during an informal chat with P. P Basistha at Vizag on the eve of company’s launch of its wheel loaders. The company delivered its first batch of 21 tonnes, 90ZIV-2 six wheel loaders to Vizag based Bothra Shipping as a complete built unit (CBU) from Kawasaki’s Banshu factory in Japan.

What are your expectations from the Indian construction and mining market?

I am extremely bullish on the buoyant growth trend of the Indian construction and mining industry. The firm growth rate would place a demand for wheel loaders, due to the fact that the construction and mining industry is becoming much more mechanized. With our competitive wheel loaders, we would all look to cash in the demand.

I am also bullish on the demand of the equipment from the country’s port and shipping industry for handling the bulkey cargo of coal, iron ore at the berths, perceived by the fact that the country’s ports are on a major expansion mode. Coincidentally, our first customer is Bothra Shipping who have brought the equipment for dry cargo handling Applications at Vizag Port from DOZCO (INDIA) PVT LTD, our Indian distributor.

Do you think the sales would be comfortable with higher price tag?

The machines excel on their fuel efficiency, durability and have less downtime among other features. All these make the working performance of our wheel loader competitively superior. These qualities would be well appreciated by the Indian customers who would not mind to pay higher price for a qualitative products. As I understand, in recent years, Indian customers have preferred quality products with work schedules getting tighter.

On sales, promotion and delivery schedules

Sales and servicing of the machines in India would be exclusively through DOZCO (INDIA) PVT LTD. We are satisfied with the DOZCO’s market network access across the country supported by its networking capabilities based on its services and spares back up support systems. We would train DOZCO’s engineers to ensure complete service satisfaction.

On part of promotion of the machines, we are looking at the prospective events across the country to showcase our wheel loaders. Accordingly, we would display our Large Size Wheel Loaders to target Mining industry during IMME at Kolkata. Further, we would introduce Block handlers to target Marbel and Granite customers.

As a part of its business promotion, Kawasaki looks forward to bring in mid–size and large–size wheel loaders into the country.

Kawasaki’s other range of construction equipment.

We manufacture wide range of wheel loaders, load haul dumpers, compaction machineries, concrete paving machines etc.

NBMCW August 2008

WIRTGEN Main Focus on India with More Products Lines

WIRTGEN Main Focus on India with More Products Lines
"India is going to be the main focus in Asia for the Wirtgen Group and we offer a complete range of equipment for road building and road rehabilitation. We are expanding our sales and service network and we would be introducing more product lines in the Indian market–like Wirtgen Hot and Cold Recycling, Crushing plants from Kleemann. Over the next five years, we are expecting our business to grow at over 30–40% annually," says Mr. P. Ramesh, CEO and Managing Director, Wirtgen India Private Limited, in an exclusive Interview with S.A.Faridi.

Please share with us information about Wirtgen GmbH’s worldwide operations. How over the years the company has transformed itself to its present stature starting from a traditional road contractor?

Wirtgen Group is headquartered in Germany with revenues of Euro 1040 million in 2006 and consists of two divisions, Road technologies & Mineral technologies with four companies, Wirtgen, Joseph Vogele, HAMM, and Kleemann.

Wirtgen Group has more than 55 own Sales & Service companies and 4,000 employees worldwide. Wirtgen started as a traditional road contractor and then got into manufacturing of machines in 1981. Today, the operations are steered by Mr. Jurgen Wirtgen and Mr. Stefan Wirtgen.

Wirtgen Group is basically into road construction equipment, road rehabilitation equipment, surface miners and crushing plants. Wirtgen manufactures Cold Milling Machines, Hot & Cold Recycling equipment for roads, Soil stabilizers, Concrete slipform pavers and Surface Miners.

Vogele produces asphalt pavers ranging from 1.1 m to 16 m paving widths, Hamm produces complete range of vibratory compactors; and Kleemann –the latest acquisition of the Wirtgen Group is into the manufacture of crushing plants.

Over the years, the Wirtgen Group has grown and expanded and is today the market leader both in terms of technology and market share for most of the product range in which we operate.

What are the products Wirtgen India is presently offering to the Indian construction sector? What are the technological advancements made over the years in the products line?

Wirtgen India Pvt. Ltd. – a 100% Subsidiary of Wirtgen Group currently offers the complete range of Wirtgen Group products – viz. Wirtgen Slipform Pavers, Wirtgen Cold Milling Machines, Wirtgen Hot Recyclers, Wirtgen Soil Stabilizers, Wirtgen Surface Miners, Vogele Asphalt Pavers; and, Hamm Vibratory Rollers.

There are several technical advancements which have been incorporated in the various products manufactured by Wirtgen Group – a few of which are mentioned here:

Flexible cutter system in the cold milling machines where we are clear world market leaders with the widest range of equipment; the use of electric vibrators and the New Dowel Bar Inserter system in the concrete slipform paving. Infra red heating system, Heating of the road surface, Scarifying, Remixing, Repaving, Paving with high compaction screed is done in one single operation in the hot recycling train, High Power Compaction using pressure bars in the Vogele asphalt pavers which also features the ergo plus, and Oscillation technology in the HAMM rollers, etc.

Please share with us a few technical features of Wirtgen Slipform Paver and the projects where the pavers are deployed.

Wirtgen Slipform Pavers are being extensively used in various NHAI and state roads and airport projects across the country. As of now, we have over 50 Wirtgen paving trains in operation in India. Seven out of eight Slipform Pavers used on the prestigious Mumbai – Pune Expressway are from Wirtgen. Almost 80% of the concreting in the Golden Quadrilateral project (which has been completed) and at the East-West Corridor are with Wirtgen Slipform Pavers. We also have our machines working in the Mumbai city projects like Jogeshwari-Vikroli link road, Bandra–Kurla complex, Bangalore and Hyderabad Airports, etc.

How is Company focusing on after-sales and supply of spare parts and strengthen the same in view of good response to company’s products and services and growing demand.

Wirtgen India is headquartered in Bangalore where we have a full–fledged spare parts depot, service center and training school. This year, we are decentralizing our operations and have opened branches at New Delhi, Mumbai, Hyderabad, and Kolkata. With these branches, we are in a position to offer service and spare parts support very close to the project sites. Wirtgen’s strength over the period has been its products which offers latest in terms of technology and excellent support after the product is delivered.

Wirtgen places great store by training and development. What are the current initiatives of company’s Training Centre in Bangalore and at job sites for maintenance of equipment?

Yes, Training has been the main focus area of Wirtgen India and our Operator Training School would begin very shortly in Bangalore. We have a full year training calendar which offers various types and levels of training for Operators, Technicians, etc. We also conduct training at job sites where a sizeable fleet of our machines are in operation.

What vision the Company has set forth for itself for the next five–six years to develop its business operations in India? What business areas are set to grow faster for it and plan to gear up Indian operations?

India is going to be the main focus in Asia for the Wirtgen Group and we offer a complete range of equipment for road building and road rehabilitation. We are expanding our sales and service network and we would be introducing more product lines in the Indian market - like Wirtgen Hot and Cold Recycling, Crushing plants from Kleemann. Over the next five years, we are expecting our business to grow at over 30 – 40% annually.

What support your Company looks to Government in reforming tax, import regime to put construction equipment sector on fast track?

From the Wirtgen’s point of view, we would like to have the road rehabilitation equipment like Cold Milling Machine, Hot Recyclers, Soil Stabilizers and Cold Recyclers to be exempted from Customs Duty. These machines save precious natural resources like aggregates, bitumen, etc. and we would like to have these machines in the Duty exempted list as they are not manufactured in the country.

What are the issues Construction Equipment Industry needs to address today foreseeing booming infrastructure development.

I feel, the biggest problem facing the industry is availability of trained operators and we at Wirtgen India are focusing on this aspect.

What are the Wirtgen plans to participate in the forthcoming Excon 2007, its focus of presentation and new launches–in view?

At Excon 2007, we would be displaying a very small portion of our product range due to small space made available to us. However, we would be exhibiting our latest range of Wirtgen Milling Machine, Vogele Asphalt pavers and HAMM Vibratory Rollers.

NBMCW November 2007

Volvo CE to Launch New Road Machinery at Excon 2007

Volvo CE to Launch New Road Machinery at Excon 2007
"Excon 2007 would be the first major event in India after the acquisition of Ingersoll Rand and would demonstrate the capability of Volvo CE as a solution provider and not as an equipment manufacturer alone. Excon will see the launch of a few road machinery and construction equipment which reinforces our commitment to our customers that we would bring the latest technology to the country which ensures the lowest cost per ton," says Mr. Mritunjaya Singh, Vice President, Volvo in an interview with S.A.Faridi.

Indian construction equipment industry is undergoing a rapid transformation— moving from a low volume, intensive use of equipment structure to high volume, and specific use one. How Volvo CE is positioning itself in this mode to turn out improved versions benchmarked to energy efficient, ecofriendly equipment as per emerging national and international standards?

Volvo CE will continue to bring products in the country that would ensure the lowest cost per ton and ones that would meet the environmental concerns challenging the manufacturers globally. India is among the fastest growing construction equipment market and Volvo is very well positioned to meet the requirement of the Indian market and customers — both in terms of equipment supply and after market support.

What major segments of construction equipment are set to grow in the wake of current infrastructure boom?

The economy boom will have to be necessarily supported by the availability of Roads, Power generation (Thermal and Hydel) and Urban Infrastructure to facilitate the quicker movement of goods, migrating population from the towns to the cities. These three segments will see a major growth. Consequently, we will see a fillip in mining (coal and lignite, limestone, iron ore).

In view of the strong growth in the Indian construction market, Volvo has planned to set up a production unit in India. When this unit will start production and what products you will manufacture here?

Volvo CE will be a major player in the construction equipment industry and would work towards being a solution provider instead of just being an equipment manufacturer. We plan a major investment here and this would see a global manufacturing facility in India. We plan to roll out the units by 2010.

Indian construction equipment industry has reached a stage where all options lead towards its fast track development. What policy provisions are needed at the Government’s end in terms of rationalizing the current tax and import regime along with much needed measures to restrict the entry of outdated machinery import in the country so as to put the industry on faster track?

Volvo CE has been a front runner globally in manufacturing products that meets its social commitment driven by safety and care for environment and also customer profitability driven by lowest cost per ton and quality. India would need to quickly get in norms to ensure latest technology comes in to the country which would help to do the job quicker with a better quality and needless to mention meets the environmental concerns. In a country which has norms for Tractors when it comes to emissions, we do not have one for the construction equipment both the tyres and crawler versions. The introduction of these norms will definitely restrict the outdated machinery import. The used machinery import as long as it meets the norms should not be restricted.

After acquiring Ingersoll Rand’s road development equipment division, Volvo CE has set its eyes on Shandong Lingong Construction Machinery Co of China. What does it mean in terms of enlarging the business platform and product portfolio of Volvo and its total product range?

As a solution provider, it would mean that a manufacturer meets the job requirement and the customer requirement better. The acquisition of Ingersoll Rand is a first big step to being a One Stop Shop for the customer – meaning all his requirements of equipment and after market support is met and that he would be able to focus on his core business while equipment manufacturer will focus on theirs. Shandong Lingong Loaders will help expanding range of Volvo and help meet the requirement of cross section of customers who are both price sensitive and quality conscious.

Volvo has in place a sound network of countrywide dealership, after sales and customer support system. How is it being strengthened further in country’s vast market? What are Volvo’s financing facilities for equipment acquisition?

Volvo places great importance on the after market support and since the time we entered the Indian market, we have been constantly expanding and upgrading our network of dealerships. Apart from continuing to expand and upgrade the infrastructure, Human Resource would be the focus area for Volvo CE and this would call for extensive training of Volvo CE and Dealership personnel. Investments on the demo center would also help train the customer personnel which would improve the product performance out in the market place. India has a robust banking and credit appraisal of the customers being done by the lending institutions and therefore the need for Volvo financial services is not felt in India and at the moment there would be no value addition. However, Volvo does tie up with leading financial institutions that would help provide lower cost of funds to the customer.

Volvo CE has been very effectively utilizing forum like Bauma and Excon to demonstrate its technical prowess. What are plans for participation in the forthcoming Excon-2007 exhibition at Bangalore, its focus of participation and new launches— in view?

Excon 2007 would be the first major event in India after the acquisition of Ingersoll Rand and would demonstrate the capability of Volvo CE as a solution provider and not as an equipment manufacturer alone. Excon will see the launch of a few road machinery and construction equipment which reinforces our commitment to our customers that we would bring the latest technology to the country which ensures the lowest cost per ton.

NBMCW November 2007

Terex Finlay: Bullish on India

Mr. Jaideep Shekhar, Terex Finlay
It has been three years since UK based Mobile Crushing, Screening and Washing Plant manufacturer, Terex Finlay—a fully owned subsidiary of the $9.1 Billion Terex Corporation of US, entered India. Buoyed by the growing demand from the Aggregate & Mining Industry, Terex Finlay has been able to make good headway in sales. In an interview with P.P.Basistha, Mr. Jaideep Shekhar - Country Manager, India and South West Asia, Terex Finlay, talks about company’s strategy, New Product launches, Training & Promotional plans to support the offerings and on emerging market trends in the crushing equipment sector in India.

Mention about Terex Finlay and its operational set up in India.

Terex Finlay is a market leader in Mobile Crushing, Screening, Washing and Recycling equipment. Our products are used in industries such as construction, quarrying, mining, landfill, aggregates, iron ore, Asphalt, Rock crushing, demolition, and recycling and has a centralized manufacturing facility measuring approx. 400,000 sq. ft in Omagh, Northern Ireland, UK.

The Company is widely known for its innovative and leading designs, quality products, and extensive dealer network and after sales support. We have invested heavily in our people and equip our staff with state-of-the-art technology. Exporting for nearly 50 years to 80+ countries throughout the world, we at Terex Finlay are committed to continual improvement in accordance with our customer’s requirements.

Though, Terex Finlay has local representation in India, it relies on its dealer network for sales and service support as per Terex Finlay’s global marketing model. Our dealer in India is W.B. Engineers International Pvt. Ltd. and is responsible for the Sales and After Market requirements of the equipment.

Through our India Office, we liaison between the factory at Omagh and the dealers in India and countries of South West Asia. We monitor the performance of the dealers pertaining to sales and service support to the end customers and also take care of the training needs of the dealers enabling them to render efficient service support to the customers.

Is your dealership arrangement with W.B Engineers exclusive in India? How is W.B Engineers positioned in terms of its network access locations to carry out effective marketing of your products? What is the networking capability of the company in providing back up service support?

Presently, W.B Engineers is looking after the Sales in India. Headquartered in Pune, it has its regional offices at Kolkata, Mumbai, and Bangalore which houses the Sales and Service Staff. Their main warehouse is located at Pune. WB Engineers also has local offices at Hospet in Karnataka and Joda in Orissa to cater to the Mining Areas. These local offices have a complete sales and service team and also store spare parts for requisite equipment service support. With the help of these local offices, WB Engineers is in a position to provide quick Sales and Service Support to all our customers in these mining areas. These areas also have high concentration of Terex Finlay’s equipment.

Mobile Crushing, Screening, Washing and Recycling equipment
Our dealer also offers flexible tailor-made solutions for Rental/ Contract Crushing options. Under this arrangement, the dealer mobilizes the site with the machine and manpower and also takes care of the operation and maintenance of the Crushing and Screening Plant. The customer gets the benefit of hassle free supply of Crushed Aggregates/Iron Ore and has to pay on a per ton basis.

To run the contract crushing services, WB has trained operational manpower and service engineers in place. The techno manpower resource also in turn serves the service and maintenance requirement of Terex Finlay machines.

What are your future plans to make the distribution tie-up well forged?

To ensure optimal customer support, we would be laying further emphasis on technical training to WB’s Service Engineers for both existing products and for new products which we will be introducing in the Indian market. At present, Service Engineers from UK have been conducting Technical Training Sessions for our Dealer’s Sales & Service team through various online and classroom coaching session both onsite and in UK. Depending on the customer’s requirement we also include them in these knowledge sharing sessions.

Besides organizing more seminars, we would now be increasing the frequency of these training programs as the demand of equipment grows. We believe that Dealer development and training is a continuous process and Terex Finlay gives due importance to this fact.

With your promotional model to sell products through distribution tie-up, how are you addressing the issue of physical availability, knowledge availability, and performance availability of the equipment. Which are the areas you perceive that fine tuning is required on mutual front?

We have developed a model which studies the market demand and supply situation on a continuous basis. Based on our knowledge about the expected demand, the dealer places the demand to the factory well in advance to ensure our committed delivery timelines are met.

As I mentioned earlier, WB Engineers has adequate skilled resources to meet our customer’s requirement with respect to setting up the plants and ensuring smooth operations. WB’s engineers are technically highly skilled and experienced and have been successful in this.

Like most of the companies in this Industry, high level of attrition has been a challenge for us as well. However, we are continuously trying to keep the sales force motivated and ensure better Dealer and Principal partnership so that we all feel part of one family.

Number of units sold till now and future sales target.

We now have approximately 120 equipment in India. Our target is to reach the figure of 200 equipment in India by year end.

Based on your perception, what are the emerging trends in India’s crushing equipment industry. How are you getting attuned to the emerging trends in terms of competitive product positioning?

Indian Crushing industry is multifaceted. As the project size has increased over the years so has the demand for higher capacity machines in the range of 200 TPH-300 TPH. Demand has also grown for Mobile Machines both Wheeled and Tracked. Machines are now becoming much automated and have programmed logic controls, making them less labor intensive to operate. Another important development trend to note is that the Track Mounted Screens are now becoming a commodity product.

Mobile Crushing, Screening, Washing and Recycling equipment
At Terex Finlay, we have high capacity crushers, manufactured on cutting edge technology. We are the market leaders in manufacture of Track Mounted Mobile Equipment and our products are competitive as they are run by their own power units mounted on the mobile chassis, thereby removing the requirement of external power source. These machines can also be moved easily at the site and there is no requirement of any civil foundations.

A little more on competitive product positioning and advanced technical features of the equipment.

At Terex Finlay, we offer a complete solution comprising crushing, screening, washing and recycling solutions making the offering much more competitive to the end–users. On technical features among few, the Terex Finlay C-1540 cone crusher features a number of major benefits including hydrostatic drive, rapid set up time, high reduction ratio, high output capacity and advanced electronic control system.

The unique feature of the C-1540 is the optional integrated pre-screen. By only crushing the products that needs to be crushed, the capacity of the machine is increased and wears costs reduced. This unique feature is very useful in iron ore applications where lesser fines production is required. The metal detector on the hopper with self clearing facility is also another notable feature.

While the Terex Finlay J-1175 Jaw Crusher comes with a unique feature of reversible operation for cleaning blockages. Terex also offers fully hydraulic adjustable closed side option in addition to hydrostatic drive and advanced electronic control system.

What are your future product introduction plans? With rising raw materials costs, how would you be ensuring to keep equipment cost competitive?

We would be shortly launching our J–1160 Jaw crusher in India. It would have a capacity in the range of 150–200 TPH. Some of the prominent features of this crusher are: high output and reduction ratio, rapid set up time, grizzly feeder with integrated prescreen, fully hydraulically adjustable closed side setting, and Pullrod tension ram. Notably, the J-1160 is compact and easily transportable.

Terex Finlay’s Production is centralized at our Factory in Omagh, this huge scale of operation gives us a better bargaining position with all our supplier, coupled with our very long relationship with most of our supplier, we are in a position to keep our cost lower and offer a competitive prices to our customers.

NBMCW May 2008

Cutting Edge Technology Products & Services from Telcon

Cutting Edge Technology Products & Services from Telcon
"Telcon's constant endeavor has been to provide construction solution to the customers. The company has always been at the cutting edge of technology and provides discerning Indian customer the latest and most effective solutions. At Excon 2007, the company intends to display the E-age excavators and launch a series of new products" says Mr. V.R. Raje, Vice President, Sales & Marketing Telcon, in his interview with SKK.

Telcon has important tie-up arrangement with leading overseas manufacturers. How do these tie-ups help Telcon in serving domestic market better?

Telcon is a joint venture between two global giants, Tata Motors, India’s largest Commercial Vehicle manufacturer and Hitachi Construction Machinery Company Ltd., Japan, the world leader in Hydraulic Excavator technology.

Our association with Hitachi goes back to 1984, which is the oldest relationship that exists in the industry. Hitachi, being the world leader in hydraulic technology, has always ensured that they gave the latest technology. So we are on a continuous technology up gradation programme.

We are also in the process of including the Hitachi team into our manufacturing initiatives. In terms of manufacturing, support, design, and quality, they have ensured their presence with us all the time.

The other aspect of course is that Hitachi has global affiliates and partners through which we can access technologies. For instance, there is Hitachi Sumitomo Heavy Industries Construction Crane Co. Ltd, which is a joint venture between Hitachi Constructions and Sumitomo Heavy Industries - So products such as heavy cranes that are widely used in infrastructure building activities such as ports and refineries are sourced through them and supported by the extensive Telcon network.

What segments of construction equipment are set to grow in the wake of current boom in infrastructure?

With the growth outlook in the Indian Economy pegged at a robust 9% as well as the increased investments by the government for better roads, modern ports, airports, railways, the construction equipment industry as a whole is set to grow at a rate of 35-40%. This would include a variety of equipment such as Backhoe Loaders, Excavators, Wheel Loaders and so on.

What is the market share enjoyed by Telcon at present and what are the plans to ramp up the market share in the next 3-4 years?

Telcon is the market leader in Excavators with a share of 53%. In the Cranes market also, we have a dominant share. Telcon has a significant presence in the Wheel Loader and Backhoe Loader markets.

Telcon has been expanding its dealer network to widen reach and serve customers better. Adding new outlets will further reinforce this network.

We have identified new segments and applications where we can use our products and have launched various products to cater to the diverse needs of the customers. Our access to Hitachi’s technology and our strong manufacturing base enables us to quickly respond to the evolving market.

What are the value added services that Telcon offers its Customers?

Telcon’s constant endeavor has been to provide Constructive solutions to the customers, be it the right kind of equipment for their applications, the new age technology or the after sales support. Our focus is also on value added service offerings such as Full Maintenance Contracts, which complete our package to our customers and enable them free up precious resources for their core activities. Specialized reconditioning and refurbishing services are offered to ensure that the utility of the equipment is extended and life cycle costs brought down.

Telcon has been an important participant in the national and international exhibitions showcasing its technical capabilities in the manufacture of stateof- the-art equipment and machines at these events. What are Telcon’s plans to participate in the forthcoming mega event Excon—2007 to be held in Bangalore. What will be the focus of its participation and plans to launch new versions of equipment?

Cutting Edge Technology Products & Services from Telcon
The company has always been at the cutting edge of technology and provides the discerning Indian customers the latest and most cost effective solutions. At Excon, the company intends to display the E-age excavators, of which ZAXIS series is one of the offerings. Telcon is the first company in India to have launched the Hydraulic Excavators and holds over 53 percent market share.

The company has recently launched ZAXIS 50U, India’s first zero tail swing Excavator that will redefine construction work in urban areas and open up endless possibilities for the construction contractor.

Also on the display would be the World-class Hydraulic and Truck Mounted Cranes from Hitachi Sumitomo Heavy Industries Construction Crane Co. Ltd and Tadano Ltd, Japan. The company would also be launching a series of new products during the event, which have been carefully designed keeping the requirements of the Indian customers in mind.

NBMCW November 2007

Versatility is our strength

"Telcon commands a sizeable market share of 55% in the Indian excavator market with a wide range of excavators being manufactured by the company, beginning with a capacity of 2 tonnes and going on to 120 tonnes, to suit the requirements of a wide spectrum of applications." In a recent interview to Partha Pratim Basistha and Mr. Vikram Raje, Vice President and General Manager, Sales & Marketing, Telcon, shared his observations on the country’s construction sector growth, development happenings in construction equipment and altogether in the excavator market and how his company is positioned to take on the development.

What are your observations on the growth of the country’s construction sector? Do you find the buoyancy to pass through certain corrections in due course?

The growth story of India’s construction industry would continue to happen. Large-scale infrastructure deficit in the country, in terms of requirements of airports, ports, roads, power as well as residential and commercial space would make the growth continue exponentially. With the government’s renewed focus on infrastructure creation, to meet the 9 percent GDP growth during the 11th five-year plan period, there is not much room for correction in the growth story happening. Government’s initiative to undertake core construction projects through the Public Private Partnership (PPP) route would provide a necessary shot in the arm to the ongoing positive growth trend for the construction industry. However, the challenge for the government would be to identify a large number of bankable projects. This would enable the PPP initiative gain further ground and have direction.

Led by the growth of the construction sector—do you also find the construction equipment industry getting commensurately matured? Kindly highlight, what are the factors behind the development process?

There is a definite maturation process happening in the Indian construction equipment industry. On a macro level, the overall growth of the construction industry is making equipment manufacturers put in business process models to meet the burgeoning demand of the construction industry. This is one part of the maturity being exhibited on the part of the equipment manufacturers. But in an even more significant way, there is an increasing trend to mechanise, shift from usage of smaller capacity equipment to bigger capacities in order to gain efficiency of scale as also a shift to equipment having more technologically advanced features. This has brought in wider product ranges as well as more advanced equipment.

The change in demand is being driven by the large size projects and rigid project completion schedules. Large size equipment with advanced features are enabling construction companies to have proportionate quality output and also to complete the projects within the scheduled time frame. But I would like to say that today customers are more aware and exacting as compared to five or seven years ago and are keen on getting maximum utilization of the equipment. This, as a consequence is making the equipment industry manufacture advanced products.

Do you find similar level changes happening in the excavators market as well?

Very much so. The excavator market is equally getting developed with demand for equipment in every category. To meet the demand, equipment companies are manufacturing and positioning their products in these segments. There exists a huge market catering to the demand for low and medium range excavators possessing a capacity of 10-40 tonnes.

The assorted market demand is being led by the construction of infrastructure requiring higher capacity equipment as well as from urban infrastructure which have a different set of equipment capacity needs. Excavators being an integral part of any construction activity are required in ever increasing numbers. Today, the demand is shifting in every segment to the next higher model category for better outputs to accelerate work and meet tighter deadlines.

How is Telcon positioned to meet this assorted demand with its product line. Besides, how are the excavators manufactured by Telcon placed in terms of its capacity and features?

Telcon has been serving the demands of the Indian construction industry for over four decades now with a wide and versatile range of excavators. Our range consists of capacities from 2 tonnes to 120 tonnes of capacity and even beyond through direct imports from our Principals.The wide range of excavators manufactured by us caters to the different segments of the market. This ability to address every diverse application through customized solutions with an eye on operating costs of the customer is the strength of the Telcon brand, which is unique. With the range of excavators on offer, Telcon enjoys a market share of 55% in the Indian excavator market. The machines have technologically advanced features. Rugged under carriage design and heavy-duty structures make for robustness of performance. Telcon excavators also offer electronic diagnostic and data logging systems for tracking equipment usage and performance. Besides, the machines are fuel-efficient and can also be offered with compliance to Euro-3 pollution norms. This in turn makes the machines environment friendly.

With burgeoning ongoing demand in place and keeping the high forecast future demand, what are your initiatives to ramp up your production facilities—in view?

We are undertaking a systematic initiative in expanding our production operations. Telcon would be coming up with its third plant at Kharagpur, near Kolkata in West Bengal during the year 2008. Telcon has presently one plant each at Jamshedpur and Dharwad, which are utilizing 60- 70 percent of their production capacity. With the green field plant coming up, Telcon would have a comfortable production capacity both to meet the ongoing demand effectively and the large scale demand as projected.

With cost of production going up, what have been your initiatives to make the products price competitive?

To make our products price competitive, Telcon on a sustainable basis is rationalizing its production and operational costs within the organization. This apart, the company is laying emphasis in cutting down its raw material and component procurement costs. The two initiatives have significantly enabled the company to check its production costs from escalating.

What about Telcon’s after–sales support system?

Telcon’s after–sales support system has a wider connotation. It is not merely restricted in providing spares and components to the machines, post sales, in the event of any break down, but lay emphasis in showing the customers how to extract the full benefits of all the features built in. It is a critical paradox that in India, excavators whether in mining or construction are not utilized to their full capacity as compared to markets in Australia, U.S or even Indonesia. Many of the Indian customers take pride in deploying a number of machines at the site rather than undertaking the work through an optimized fleet. This escalates the cost of the project at times.

To correct the tendency, we lay great emphasis on training and making the customer well acquainted with the operational features of the machines so as to enable him to utilize the machines fully. In addition to this, we offer customized support solutions and maintenance packages where at a mutually agreed cost, we maintain the equipment for the customer over its lifetime. We have entered into such agreements with a number of corporates and contractors.

To make our after sales support system run smoothly through ensuring component support, we have one mother warehouse at Nagpur and four feeder warehouses. Besides, we have 35 dealers operating throughout the country and 70 outlets for providing after–sales service support. All this infrastructure is supported strongly through sound and reliable delivery systems and processes.

NBMCW May 2007

"Working Against Delivery Factor"

Mr. S.Anantharaman, Sennebogen
German crane major Sennebogen, has been facing good lot of serious trade enquiries for its cranes from the Indian construction market. However, with its order book full till the period of 2009 the company has fallen short to make the queries materialized. In an interview to P.P Basistha, Mr. S.Anantharaman, Business-coordinator India for Sennebogen spelt out the strategy taken to counter the delivery factor working against the company for the Indian market.

With order books full, how is the company looking to meet the demand requirement of the Indian market?

To counter the demand factor working against us we are laying total emphasis on the dissemination of knowledge on the refined technical features of our cranes, for use in construction application. Although, Sennebogen brand and the features of its cranes is well acclaimed in the Indian construction market, increased knowledge spread would strengthen the brand image of the company and its products.

But critically, how are you trying to address the supply side constraints?

We are coming up with a new plant in Germany at Straubing, close to Sennebogen's crane line division. The new plant in the long run would go on to check the supply side constraints.

Sennebogen's crane line division
We are looking for selling the knowledge concept of crawler telescopic cranes in India. Sennebogen is globally acclaimed as a manufacturer of crawler telescopic cranes. The company has its name in crawler telescopic cranes much owing to the refined features as compared to other manufacturers.

Crawler telescopic cranes are much competitive in their application as compare to crawler lattice boom cranes or rough terrain cranes. The crane even scores over all terrain cranes owing to its pricing component.

Our crawler telescopic cranes have better grip. This enables the cranes to provide the operational advantage of a rough terrain crane. The unique feature of the crane is its low cycle time. The crane has pick-n-carry advantages. It can locate and place the load at a quicker time. Overall, to run the cranes additional stabilizers are not required. And given the features the cranes can be used for all kind of construction lifting applications.

More on technical features, what makes Sennebogen products competitive?

In tune with German technology, Sennebogen’s cranes have better operating features. The in–built features of the machines ensures its longevity, consistent performance and reliability. To provide longevity and consistent output, the machines are manufactured with special grade materials to provide ruggedness.

Every component used in the machine is sized to provide higher output then the desired levels. This goes on to make the machines much ideal for Indian construction applications. The machines are equipped with added safety features and have minimum electronic, yet refined control systems for easy operation.

Being equipped with rugged features along with superior technical features to ensure consistent performance, provides the ideal resell value for the products making them competitive and reliable in their entirety.

Role of Ve Spec Consultants and business coordinator?

Our role is to act as a coordinating agent in between the dealers and principals. We provide necessary information on the company’s products to the dealers. This is so as to enable them to provide appropriate briefing to the customers about the products. On the other hand, our role is also to provide market information to the parents on its requirements etc.

Overall, we also take care of identifying at the right platforms for spreading information on Sennebogen's products and its applications.

Number of dealers engaged by Sennebogen in the country?

Presently, we have two dealers, one in Delhi, Alpha Technical Services and other is Maco Corporation in Kolkata.

We are providing extensive training to the dealer on the machine, so as to enable him to provide complete training to the end users operator. Moreover, a continuous service training is provided by us to the dealers to the operator of the machine during its course of operation at the site project.

To make dealers better equipped for providing efficient training to the customers, we engage dealers having experience in selling and providing service support to mobile hydraulic construction equipment as a prerequisite.

NBMCW April 2008

Quippo Energizing Energy Rental Business in India

Mr. Hemant Pincha, CEO, Quippo Energy
After scripting a success story in construction equipment rental business, Quippo now offers unique business proposition in Indian energy rental market, offering solution in excess of 70% thermal efficiencies vis-a-vis conventional solutions. With success at hand in the new venture, Quippo Energy Rental plans to take business from 20 MWe–500 MWe in next 2-3 years over a rental platform, says Mr. Hemant Pincha, CEO, Quippo Energy & Equipment Rental, in his interview with SKK.

Congratulations on the success of newly constituted business unit, Energy Rental, under your stewardship, achieving an asset base for 22 MWe of power generation in a short span. What have been the important initiatives?

Quippo offers unique business proposition in Indian energy market comprising gas based complete Power, Heating and Cooling (CHPC) solutions over a rental platform. We are offering this in order to capture part of growing power demand while offering customers with a unique service–an alternative to “buy.”

We derive competitive advantage from this fact that Quippo plant works in excess of 70% thermal efficiencies when compared with traditional coal based plant levels of 40-48%. On account of being localized captive units, there is minor T & D loses again when compared with grid T & D loses of 15–25%. This at the back of reliable services of plant uptime of 98%, we are operating like a reliable grid with consistent quality of power and added advantage of flexible contract terms. Our solution has been designed to provide quick fix solutions which are containerized for easy mobility and fast operations. These Power Packs are padlocked containers with the complete control in our hands. We give the client the scope of expanding. While customer concentrates on his core competencies, we take all his risks of CAPEX, technology, O&M and complete project management.

The motive behind such solutions is the benefit of masses as our solutions are quicker and easier on expenditure along with providing lot of scope for energy conservation and clean energy. The only limitation of our solution is that it is based on natural gas which is not available everywhere. We are at the moment catering power needs from 500kWe to 20MWe of power.

What prompted Quippo to constitute this new business area, what is the market like for this segment, and your plans to garner a greater share in this new business area?

India will have stable natural gas market on a long term. In developed economies like the USA, UK and Japan, the rental penetration is as high as 60-80%. I had happened to attend a conference in Las Vegas where rental revenues were stated to be in excess of $ 37b in 2007. India offers a trend in reverse with penetration of lower than 5% and hence offers an opportunity in this space.

We are now approaching the medium scale industries with revenues upto Rs.150 crores in areas like paper, engineering, chemical, pharmaceuticals, and textiles. We have been successful in convincing corporate like Raymond and Philips for their new expansion plans to go in for a concept of power rental.

The focus will remain in Gujarat for this year as the gas availability is the highest here. For next couple of years, we plan to explore:
  • Delhi and NCR Region
  • Andhra Pradesh & Tamilnadu
  • Area covered by Reliance Pipeline which will be ready by then and will pass through states like Andhra Pradesh, Madhya Pradesh, and Maharashtra.
We as a company have plans to take our business from 20MWe to 500 MWe in next 2-3 years by entering foreign markets as well. India itself can generate around 400 MWe in 4 years time so a CAPEX of 1000 crores will be required.

Tell us something about your existing installations in Energy Rental sector.

Quippo Energy Rental Solutions are offered throughout India with efficient products and ever growing team of skilled technicians, highly knowlegable energy experts exclusively committed to deliver the right solution to the client. Quippo Power Packs are remotely monitored around the clock via web-base connectivity from its fulfledged Ahmedabad based Centre of Excellence.

High-value continuous manufacturing processes depend on reliable electricity to maintain throughput and protect product integrity. On-site electric power systems help manufacturers maintain production efficiency, meet competitive challenges by driving down energy costs by co-generation to achieve financial objectives. Quippo Power Packs are at work in manufacturing-related applications such as:

Industries powered up by Quippo Energy Rental include, Paper, Chemicals, Textile, Electronics, Steel, and Packaging etc.

Quippo construction equipment rental model has been a success story serving the needs of construction sector. What further fine-tuning is at hand in view of chronic shortage of new generation equipment of higher tonnage at one hand and heterogeneous nature of construction equipment required for complex on going and new infrastructure projects at the other hand, requiring long term financing and technical services?

Equipment rental business has been a relatively new area in the Indian scenario. Quippo has indeed woven a success story. Although market is completely fragmented, we believe that market needs professional and national level renting company which has right infrastructure to support this massive construction work. Thrust is changing to higher productivity, mechanization, safe working practices and quality of work.

This business is asset centric and hence financial and technical asset competencies are important elements to be successful. Quippo offers a wholesome product range to offer one stop solution to customers while focusing on big ticket, high productivity and state of- art-machines.

There are internal challenges that Quippo has identified and working head on in order to improve service delivery and customer satisfaction. We are working on following initiatives.
  • Create spokes and hubs across India in a meaningful manner so that they work as easy access centres for our customers while making available spare parts, workshop facilities, washing and other support to our assets on rent. Spokes will be empowered.
  • To bring operators on our payrolls as key Quippo resource with clear focus on asset management with constant training and orientation. Crew base is going to swell to in excess of 4000 in next 3 years.
  • We will be strategic buyers of machines with clear eye over its deployment at other overseas market as we move on. We will develop an internal cell which will identify and study applications to benefit our customers towards more of a solution driven approach.
  • Processes are being revisited to be able to manage business effectively. ISO 9000 is next thing. We are also going to take a view over software, tracking system and IT back bone to be able to integrate our business keeping men and machine in optimum usage.
Despite pioneering efforts by Srei and Quipo, construction equipment rental business is at very infant stage and it should set to grow commensurate with total equipment market in the country. What policy provisions are needed to give it a boost? Also, your suggestions for hassle free inter-state movement of equipment, rationalization of import and tax regime, enabling measures for infrastructure financing and related aspects?

With the booming Indian Infrastructure sector, the infrastructure equipment market is expected to reach US$ 7–7.5 billion by 2009–10. This is a very good indication for the successful growth of companies like Quippo as this boom will definitely lead to a growth of the demand of rental equipment. However, there are certain regulatory issues for the equipment rental companies which need to be addressed.
  • Logistics: There is no uniformity in the RTO, Octroi and entry tax regulations in various states of India. There are different interpretations with respect to classification of vehicles. Some of the rules are almost ancient. Smooth operation of pan-Indian equipment rental is possible only when the rules are uniform, clear and there is no roadblock for inter state movement of equipment.
  • Custom Duty: As part of equipment rental industry, we do not get any custom duty benefits while importing equipment although we play an important role in development of infrastructure of the nation. Some of these exemptions are available to other categories of business for similar applications.
We are working with many state governments over development of “Equipment Banks” to push especially rural road works. Quippo on its part is working hard to fill up the much needed void by making state-of-art equipment available with operators. Financing will be a challenge especially in a growth led asset build up mode where your revenues do not catch up with assets. It must be kept in mind that this is relatively a new area of business and will take some years before it matures up.

What is your assessment on the growth of rental equipment business in the next 4-5 years and Quippo’s projected share?

Infrastructure is the buzzword in India these days. The major focus is on construction of roads, highways, bridges, airports, power plants and mining along with commercial and residential establishments.

Over the next five years, investment in the infrastructure sector is likely to touch US $ 350 billion. This will open floodgates. Equipment rental market is small, a mere 7 per cent or just US $ 250 million. This is at the bottom of product life cycle.

As we globalize and pressure of quality work, safety and deadlines increases, concept of Rental Equipment will begin to show its benefits. Companies will move from the Owning mindset to Rental Mindset.

In next five years, a market penetration of 15%–18% is expected in India. Internally, we are also preparing ourselves to match Global Service Standards in the coming years. We have earmarked closer to Rs 1500 crores Capex in next 3 years in this business.

NBMCW March 2008

Quipo: Providing Impetus to Construction Rental Equipment Business

Mr. Sunil Kanoria, Quipo Infrastructure Equipment Limited
"Construction equipment rental business is presently at very nascent stage and is set to grow faster. Quipo, the leader in the business is providing it the desired impetus," says Mr. Sunil Kanoria, Vice Chairman and Managing Director, Quipo Infrastructure Equipment Limited, in an Interview with P.P.Basistha.

What is the total renting construction equipment market in India and percentage of market share Quipo commands? Do you have plans to enter into equipment auction business, if so, what are the plans?

As of now, however, the equipment rental market size is small, a mere 7% of total equipment market or just $245 million. But with the increasing pressure to meet deadlines of project completion, this market is expected to increase faster. By 2009-10 the equipment rental market should triple to 21 percent of the total equipment market.

The growth prospect is more significant because the rental market in India is still at a very nascent stage. The rental market in USA is 65 percent and in Japan 80 percent of the total equipment market.

Quipo is already in the used equipment auction business. Infact, this is the first Indian company to enter into this field. Henry Butcher International Valuers and Auctioneers Pvt. Limited (HBIVAPL) was incorporated in 2005 as a 50:50 Joint Venture between QIEL and Henry Butcher International Ltd., UK which is one of the largest specialist plants and machinery valuation and disposal companies in the world.

This JV offers 3 main services viz. Auctions of Commercial Equipment, Commercial Vehicles, & Cars, Auctions of Industrial equipment and Valuation of Assets.

The company’s unique format of asset disposal in India is very attractive for financial institutions, government bodies and companies in the private and public sectors whose primary objective is to obtain the highest net possible return for their assets, to turn their surplus assets into cash in the quickest and most cost effective manner.

How is renting or hiring of construction equipment a more viable option than owning it by construction companies, precisely in the present scenario when order book of construction companies are laden with large volume of projects?

The rental option has filled the much needed vacuum in the construction business. Globally, the organized equipment rental business has played a substantive role in the growth of the construction industry.

The advantages of equipment rental are many. In many cases the builder does not require all the specialized and costly equipment for long. It is therefore cost effective. If they are able to hire these on a short notice for the duration of the work. Their capital investment reduces considerably and the cost benefit can thus be shared with their customers making the service offering financially more attractive.

Even for large construction companies who normally procure such equipment, additional work pressure necessitates use of additional equipment.

They prefer rented equipment especially if they come along with trained manpower to manage that equipment. It also helps them concentrate on their service offering rather than maintaining inventory.

Also, renting the equipment gives the construction companies an opportunity to use newer equipment. This way these companies need not bother about upgrading their own equipment base from time to time to suit the dynamic needs of construction industry.

How far are Quipo’s service price competitive? How does this eventually help construction companies in hiring the equipment rather than owing it in the long run?

Our pricing is competitive and it’s really helpful for the construction companies that need equipment for a short period of time.

Services positioned by Quipo seems to be much similar as compared to the services provided by the construction equipment companies to its customers.

We intend to improvise on our quality of service to our customers. Hence, we are expanding to more locations to be at the doorstep of the customers. This would enhance efficiency and our quality of service to our esteemed customers.

How far is Quipo’s equipment bank positioned, so as to meet the heterogeneous and high capacity equipment demand requirement of the Indian construction market?

In the absence of an organized market for used infrastructure equipment and the industry organization being weak, the sector faces challenges to its growth. However, Quipo being the first equipment rental company in India offers customized solutions that cater to specific needs of customers. By expanding and strengthening its operations in the construction equipment rental business, Quipo on its part provides greater value addition to its customers.

Quipo is servicing the high growth verticals of construction, mining, oil & gas, telecom and Energy. In addition of having a state-of-the-art equipment/asset bank for construction and other infrastructure sectors, Quipo has a large pool of fully trained operations and maintenance personnel spread across various sites in India.

The joint ventures with some significant partners, global and local, as well as strategic investments act as propellants to our growth and also underline Quipo’s understanding of the infrastructure equipment rental industry.

How are Quipo’s stock yard and service network positioned? What are the plans to expand the same?

In terms of geographical presence, Quipo has state-of-the-art yards at Ahmedabad, Neemrana, Hyderabad, Mumbai, Kolkata, Bangalore, Chennai, Guwahati, and Gurgaon. These yards provide wide range of latest technology and equipment to other companies. Being strategically located across the length and breadth of the country makes equipment easily accessible to the companies and can be transported to sites at much lesser time. This leads to considerable saving for its customers.

To meet the growing demand, Quipo plans to set up 9 more yards across the country. These yards will be strategically positioned to provide equipment at locations which are witnessing high infrastructure growth and would include cities like Cochin, Nagpur, Bhopal, Bhubhaneswar, Raipur, Jhansi, Lucknow, Patna, and Chandigarh.

This is a continuous process of building the service network and various operational and logistic challenges would emerge and would have to be dealt with. It is a learning exercise for Quipo and there is continuous scope of improvement. With this metamorphosis, we would be able to deliver better and world-class services to the customers.

NBMCW November 2007

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