Kobelco Construction Equipment India

Vikram Sharma, Advisor (India & South Asia)
Vikram Sharma, Advisor (India & South Asia)

“We have started to focus on Coal Mining, Cement etc., with bigger machines of 50-ton Class, and will showcase our expanded capabilities at bauma CONEXPO INDIA.”

We entered the Mining segment a few years back and have a good position with our 38T SK 380 series.

Kobelco has grown very well in 2018, and like the previous years, our market share has gone up. Due to a constraint in production and logistics earlier, we lost a few orders, but we will now expand capacity at our factory, and the numbers will go up substantially from FY 2019.

Kobelco in India enjoys a very good reputation and brand image for its highly efficient products, backed by reliable aftersales service and support. In fact, we have created a strong position for ourselves in almost all the segments. We are now focusing on expanding and strengthening our market coverage with a stronger brand presence and widening the scope of our equipments’ applications.

SK520

Customer preference shifting to advanced technology was inevitable.

The environmental conditions will also accelerate technology advancement as the construction wheeled equipment is also subject to emission and noise controls. The Wheeled equipment are operating as per BS IV specifications already, and the industry is in talks with the government regarding Tracked equipment also. These are statutory requirements which are forcing advancements in technology for construction equipment.

The engine and supporting parts technology is becoming very advanced. Projects are seeing more stringent timelines and competitive rates, which is forcing equipment users to operate at lesser margins. In such a situation, a Kobelco Excavator can save a few million rupees for the user in terms of production and fuel.

Our dealers are within 100 kms from any location a Kobelco machine is operating in.

IND220XD 1703 fin
We have over 130 dealer outlets across India, who are now within 100 kms from the location of any Kobelco machine. We are constantly increasing our services and parts supply by bringing them closer to our customers’ locations. Our South Asia territories, which are now managed by India, are also being provided by more such support facilities.

We believe that the most important aspect of continuous growth is to retain existing customers, while adding newer ones. Kobelco is regularly upgrading customer contact and feedback programs. With our strong position in the mining segment, we are focused on keeping our machines running smoothly 22 hours every day.

With the US dollar and Japanese yen having appreciated, the CE players are doing a lot of cost cutting.

Most of the CE manufacturers still import a sizeable percentage of the machine parts. During the current calendar year, the US dollar and Japanese yen have appreciated by nearly 12-15%. As a result, we are struggling to keep our heads above water. The Indian customer is not agreeing to any significant price increase due to their own competitive pressures. In such a scenario, we have had to do a lot of cost cutting. Hedging of the currency is the other tool, but in the current, uncertain situation, both globally and in India, the cost has also gone up, hence, tightening the belt is the only solution, presently.

Growth of CE industry in the next 4-5 years is a foregone conclusion.

From what we read of the future plans of the Government, it is very encouraging. Coal production is planned to be doubled, road construction is aimed at 40 kms per day in the next couple of years, cement production is increasing, etc. We should see a double-digit growth in the next 4-5 years, as our infra development is now at a stage that it cannot be reversed from its growth path.

NBM&CW December 2018

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