Ajay Mandhr & Rajinder Raina, ECE
Forward Looking
From starting mechanized handling of material in India with its (now generic) Pick-n-Carry crane Hydra, to the launch of its K10 series of 'Safe' cranes, and then its TRX series, which transformed crane technology, Escorts believes that every manufacturer shall have to align its equipment to contemporary technology and statutory compliances through value engineering, to stay relevant in the highly competitive marketplace.
In international markets, the company's intent is to set a new benchmark by delivering more value at optimum cost with product development based on frugal innovation.
Mr. Ajay Mandhr, CEO, and Mr. Rajinder Raina, GM-Marketing, ECE, discuss the company’s technical strengths in product development and their ambitious export plans.
Our industry is dependent primarily on infrastructure expenditure, and thanks to the focus of the current dispensation, that the intent and the will is visible. Clearly, demarcated budgetary allocation of funds is helping ministries like road transport, to perform at their best.
For Escorts, all the three served domains viz. material handling, earthmoving, and road construction have been witnessing growth. Backhoe loaders are fast hitting their best ever volumes, and excavators are growing at a phenomenal pace. Compactors are growing double digit as well. PnC as well as truck cranes are growing at a re-assuring pace.
Escorts did well in all the three segments by either keeping pace with the industry or growing faster than the industry. This was despite demonetization, which did have its impact. Year 2017 started with the hangover of demonetization, but, the dogged efforts of the government helped the industry surmount the slowdown.
The Budget and the pronouncements of the Prime Minister made it clear that infrastructure development is here to stay. The first half of the current fiscal went off well despite implementation of GST, which disturbed the pace for about three months, but October saw growth back on track.
November 2017 promises to be a big month for sales across all domains of our industry. The served markets for Escorts are growing well and the recent reduction of GST from 28% to 18% will act as a booster dose. I am hugely optimistic about 2018 as well as '19, because we would have left demonetization far behind and put in place the GST systems to see the industry sail past the 2011 volumes.
At no point of time, did EPC contractors face non-availability of any equipment
The Indian industry adapts technology in an appropriate manner as defined by needs, applications, and norms. It keeps evolving as per demand at the ground level. As construction moved from in-situ to precast, equipment was made available to ensure a smooth shift. Ditto for road construction with compactors moving beyond 10 t, plus the demand for mini compacters.
As concrete roads took off, a formidable proportion of roads and concreting equipment was made available to meet demand. At no point of time, did the EPC contractors have to make a compromise or cut corners due to non-availability of the equipment they wanted to deploy. Escorts came up with its backhoe loader JUNGLI, new Compactor models, and TRX series - Hydra & Safe Cranes. A few product launches are slated for the forthcoming Excon event.
Our effort was to make appropriate technology at viable prices for it to proliferate across applications, rather than stay confined to a few users
Escorts started mechanized handling of material in India with the now generic Pick-n-Carry crane, Hydra, which kept on evolving with changes at multiple levels/facets of technology, yet keeping it affordable. Till a couple of decades back, safety was in the back burner. In 1999, Escorts launched the K10 series of 'Safe' cranes, which transformed the crane technology.
K10 was further moved up a few notches into the TRX series. All this when there were no external regulations. But Escorts studied the international best practices and moderated them to appropriate levels of Indian applications. The effort was to make appropriate technology at viable prices for it to proliferate across applications, rather than stay confined to a few users.
Today, we have a plethora of TRX series of cranes going upto 23 ton, which includes the F-series and the legendary Hydra series. A crane, CT 15, has been launched for the prestigious smart city project as well. The thrust in this crane is on maximum load movement capacity on small footprint/base, low creep and high travel speed, high on safety including full proofing and operator warning features, and use of IoT for equipment monitoring system.
We intend to deliver “more value” at “optimum cost”
Escorts is positioning itself in the International market as a “Value Innovator”, offering optimum product differentiation for the volume product segments at the right price point. Further, the operating cost of our equipment being lower, we are looking to set a new benchmark for the industry in the targeted countries. To sum it up, we intend to deliver “more value” at “optimum cost”.
Our concept of product development is based on frugal innovation which is need and enhanced value-based design philosophy. The result is that we are able to deliver products at a much more competitive rate as compared to our international peers.
We have set a target to achieve 15-20% of our revenues from exports in the next couple of years
ECE dealer network is well established in the focus markets of SAARC, South-East Asia, and the African subcontinent, and we are expanding our dealership network in the opportunity markets viz., Latin America & Middle-East. In Sept'17, during our International Dealer Meet, we launched specific machines for these new markets and will continue with our endeavour to “take India's best to global markets”.
We have set a target to achieve 15-20% of our revenues from exports in the next couple of years. The current progress is good and it's quite possible that we will achieve our target much earlier.
The 70:30 ratio between low-cost and high-cost equipment will continue to dominate the Indian market
There is a clear-cut divide, wherein high-end high-price and low-end low-price equipment co-exist in the Indian market. There is equipment with aggregates imported from European suppliers, which is of high technology and high quality, but is high priced. This kind of equipment will find buyers who are executing major projects where very high reliability of equipment is vital to their timely completion of the project. The value of such projects being high, the cost of equipment gets taken care of within the timelines of the project. EPC/PPP companies will prefer such equipment.
The low-cost equipment has lower reliability and lower life expectancy. It finds takers in retail and small-time hirers. Since the percentage of hirers and small timers is proportionately much higher, the market demand would be proportionately higher for low capital cost equipment. Having said this, in a highly competitive market, price will remain the driving factor. Every manufacturer shall have to align its equipment to contemporary technology and statutory compliances through value engineering to stay in the league. The 70:30 ratio between low-cost and high-cost will continue to dominate the Indian market.
Brand differentiations are being created in the form of equipment availability through comprehensive maintenance contracts
With not much to choose between various equipment in the market place, differentiations are being created in the form of equipment availability through comprehensive maintenance contracts, wherein, service and parts are taken care of by the OEM for a stipulated period of time.
As of today, this facility is being provided to major contractors and EPC companies. However, as the market matures, and OEMs get a handle on the costing, process, and logistics, it shall be extended to more and more customers.
The other provision is that of time-bound buy-back. Also, complete refurbishing of equipment after a particular usage shall be provided by OEMs to increase demand as a whole, and for their products, specifically.
From starting mechanized handling of material in India with its (now generic) Pick-n-Carry crane Hydra, to the launch of its K10 series of 'Safe' cranes, and then its TRX series, which transformed crane technology, Escorts believes that every manufacturer shall have to align its equipment to contemporary technology and statutory compliances through value engineering, to stay relevant in the highly competitive marketplace.
In international markets, the company's intent is to set a new benchmark by delivering more value at optimum cost with product development based on frugal innovation.
Mr. Ajay Mandhr, CEO, and Mr. Rajinder Raina, GM-Marketing, ECE, discuss the company’s technical strengths in product development and their ambitious export plans.
The served markets for Escorts are growing well, and the reduction of GST from 28% to 18% will give a further boost
Escorts is positioning itself as a “Value Innovator” in the International market and targets to achieve 15-20% of its revenues from exports in the next couple of years.
Mr. Ajay Mandhr
Our industry is dependent primarily on infrastructure expenditure, and thanks to the focus of the current dispensation, that the intent and the will is visible. Clearly, demarcated budgetary allocation of funds is helping ministries like road transport, to perform at their best.
For Escorts, all the three served domains viz. material handling, earthmoving, and road construction have been witnessing growth. Backhoe loaders are fast hitting their best ever volumes, and excavators are growing at a phenomenal pace. Compactors are growing double digit as well. PnC as well as truck cranes are growing at a re-assuring pace.
Escorts did well in all the three segments by either keeping pace with the industry or growing faster than the industry. This was despite demonetization, which did have its impact. Year 2017 started with the hangover of demonetization, but, the dogged efforts of the government helped the industry surmount the slowdown.
The Budget and the pronouncements of the Prime Minister made it clear that infrastructure development is here to stay. The first half of the current fiscal went off well despite implementation of GST, which disturbed the pace for about three months, but October saw growth back on track.
November 2017 promises to be a big month for sales across all domains of our industry. The served markets for Escorts are growing well and the recent reduction of GST from 28% to 18% will act as a booster dose. I am hugely optimistic about 2018 as well as '19, because we would have left demonetization far behind and put in place the GST systems to see the industry sail past the 2011 volumes.
“Escorts came up with its Backhoe loaders, JUNGLI, new Compactor models, Hydra and Safe cranes. So, at no point of time did the EPC contractors have to make a compromise or cut corners due to non-availability of contemporary equipment.”
Mr. Rajinder Raina
At no point of time, did EPC contractors face non-availability of any equipment
The Indian industry adapts technology in an appropriate manner as defined by needs, applications, and norms. It keeps evolving as per demand at the ground level. As construction moved from in-situ to precast, equipment was made available to ensure a smooth shift. Ditto for road construction with compactors moving beyond 10 t, plus the demand for mini compacters.
As concrete roads took off, a formidable proportion of roads and concreting equipment was made available to meet demand. At no point of time, did the EPC contractors have to make a compromise or cut corners due to non-availability of the equipment they wanted to deploy. Escorts came up with its backhoe loader JUNGLI, new Compactor models, and TRX series - Hydra & Safe Cranes. A few product launches are slated for the forthcoming Excon event.
Our effort was to make appropriate technology at viable prices for it to proliferate across applications, rather than stay confined to a few users
K10 was further moved up a few notches into the TRX series. All this when there were no external regulations. But Escorts studied the international best practices and moderated them to appropriate levels of Indian applications. The effort was to make appropriate technology at viable prices for it to proliferate across applications, rather than stay confined to a few users.
Today, we have a plethora of TRX series of cranes going upto 23 ton, which includes the F-series and the legendary Hydra series. A crane, CT 15, has been launched for the prestigious smart city project as well. The thrust in this crane is on maximum load movement capacity on small footprint/base, low creep and high travel speed, high on safety including full proofing and operator warning features, and use of IoT for equipment monitoring system.
We intend to deliver “more value” at “optimum cost”
Escorts is positioning itself in the International market as a “Value Innovator”, offering optimum product differentiation for the volume product segments at the right price point. Further, the operating cost of our equipment being lower, we are looking to set a new benchmark for the industry in the targeted countries. To sum it up, we intend to deliver “more value” at “optimum cost”.
Our concept of product development is based on frugal innovation which is need and enhanced value-based design philosophy. The result is that we are able to deliver products at a much more competitive rate as compared to our international peers.
We have set a target to achieve 15-20% of our revenues from exports in the next couple of years
ECE dealer network is well established in the focus markets of SAARC, South-East Asia, and the African subcontinent, and we are expanding our dealership network in the opportunity markets viz., Latin America & Middle-East. In Sept'17, during our International Dealer Meet, we launched specific machines for these new markets and will continue with our endeavour to “take India's best to global markets”.
We have set a target to achieve 15-20% of our revenues from exports in the next couple of years. The current progress is good and it's quite possible that we will achieve our target much earlier.
The 70:30 ratio between low-cost and high-cost equipment will continue to dominate the Indian market
The low-cost equipment has lower reliability and lower life expectancy. It finds takers in retail and small-time hirers. Since the percentage of hirers and small timers is proportionately much higher, the market demand would be proportionately higher for low capital cost equipment. Having said this, in a highly competitive market, price will remain the driving factor. Every manufacturer shall have to align its equipment to contemporary technology and statutory compliances through value engineering to stay in the league. The 70:30 ratio between low-cost and high-cost will continue to dominate the Indian market.
Brand differentiations are being created in the form of equipment availability through comprehensive maintenance contracts
With not much to choose between various equipment in the market place, differentiations are being created in the form of equipment availability through comprehensive maintenance contracts, wherein, service and parts are taken care of by the OEM for a stipulated period of time.
As of today, this facility is being provided to major contractors and EPC companies. However, as the market matures, and OEMs get a handle on the costing, process, and logistics, it shall be extended to more and more customers.
The other provision is that of time-bound buy-back. Also, complete refurbishing of equipment after a particular usage shall be provided by OEMs to increase demand as a whole, and for their products, specifically.
NBM&CW December 2017
