Ammann India
All Ammann equipment are ‘future ready’ and customers can add the requisite features to our plants and machines to suit the new and upcoming technologies which will be adopted by MoRTH.
The long-term market growth for infrastructure and construction equipment sector is positive, but the short-term does not look very promising with the GDP expected to go southwards.
The long-term market growth for infrastructure as well as for equipment sector is positive as the Government is committed to improving the road infrastructure in the country – expressways, highways, state roads, village roads etc. The short-term however does not look very promising with GDP growth expected to go southwards and the Government in need of huge funds for providing relief to the under-privileged and MSMEs. To top it all, with the lukewarm response to BOT projects, it is not clear as to how much of fund the Government will be able to allocate to the road sector to award projects under EPC, this fiscal. I think that the equipment sector will see a drop in sales volumes in FY 20-21, but time alone will tell by what percentage.
That the Government has infused the much-needed liquidity and positivity in the system is itself a moot point with a high percentage of economic experts not really satisfied with the measures. As regards the road sector, there has been no announcement yet for a special package for this sector. Right now, the industry is in a wait and watch mode.
Ammann is working very earnestly to mitigate the financing problems of its valued customers; however, the revival /new awards of projects are entirely in the hands of the Government.
The challenges for the CE industry are the same as that being faced by the engineering and automobile companies. These include lower demand; increase in input and production costs that cannot be passed on to the customers at this time - leading to reduced bottom-lines; supply chain issues; higher cost of aftermarket services; and hurdles for customers in getting loans for capital purchases.
Initiatives have been taken by all the concerned parties for equipment finance and deliveries. Ammann is working very earnestly on this front to mitigate the financing problems of our valued customers. However, the revival / new awards of the projects are entirely in the hands of the Government.
Going forward, I am confident that the demand vs supply equation will balance out well with India-made components for the CE industry.
Necessity is the mother of invention and the Indian expertise in engineering is no less than that available in developed countries. The Honorable Prime Minister of India has strongly reiterated the need to develop things locally. The process has already started and since most of such suppliers will come under the MSME segment, there will be adequate support from the Government as well. Going forward, I am confident that demand vs supply equation will be balanced well with India-made components for the CE industry.
Regarding the planned investments of MoRTH, I feel that we should allow time to the Government to revisit the action plan as the world in general and our country, in particular, are facing a pandemic challenge of gargantuan proportions.
NBM&CW July 2020
