Atlas Copco Focuses on Products Innovation & Localization

“Atlas Copco strongly believes in strategically timed innovations based on genuine market needs/demand. In today’s high pressure competitive environment coupled with the current economic slowdown, the company continues to innovate for sustainable productivity. We have introduced new products in the market, especially for the demolition industry and are also focusing at localisation of a select few products which will give us the desired growth, both in short & long-term. We hope to double revenues in the next 3 years through continuous product innovations, new product launches and empowering customers through value additions and stronger partnerships,” says Mr. Nitin Lall, G.M, Atlas Copco Construction Technique in an Interview with S. A. Faridi.

At Atlas Copco end, what are the measures initiated by it in the present slowdown spell to tweak its business models, business areas, exploring new growth avenues to dispel the prevailing pessimism in and around their businesses?
In today’s high pressure competitive environment coupled with the current economic slowdown, Atlas Copco continues to innovate for sustainable productivity.

Atlas Copco’s Construction Technique business area which provides construction and demolition tools, portable compressors, pumps and generators, lighting towers, and compaction and paving equipment, is highly customer focused, product driven and committed to delivering high quality solutions at all times. To tide away the present economic downtrend, we have been aiming at improving our territory coverage to reach new markets. We have also introduced new products in the market, especially for the demolition industry and lastly, we are focusing at localisation of a select few products which will give us the desired growth, both short & long term.

Recently, government has cleared/announced a number of new infrastructure projects and taken necessary steps to fast track their implementation as well. How do you link it with the revival of the CE industry in spite of the Parliamentary election due early next year?
There have been various projects which have been declared in the last 12 months. However, we see there is a huge time lag between projects getting announced & actually started getting executed. I feel this speed will continue to be very similar till the elections are done & the new government is in place. However, the Metro Rail Projects, the Freight corridor, both east and west will give a boost to the CE industry as the financial closure for them has already been announced.

Financing to small and medium contractors has become a big issue as banks and financial institutions have become very selective.How you are helping genuine buyers in getting finance?
Atlas Copco Construction Technique has a strategic tie-up with one of the leading financers in the industry. We are also launching various regional schemes which are designed in such a way that the end customer benefits via credit days or similar as long as the payments are secured.

The equipment market has reached at that critical point where key competitive differentiator would be after market and innovations; how you are looking on this aspect?
As mentioned earlier, Atlas Copco Construction Technique strongly believes in strategically timed innovations based on genuine market needs/demand. This year, we have extended our reach in at least 6 different states of India, via direct & dealer participation.

You are absolutely right, after market is going to be one of the key differentiators. Last year, Atlas Copco created a dedicated Business Line focused wholly on After Market. Almost 50% of our work force is focused at post sales activities. We are offering tailor made solutions, entering into long term service agreements, offering high quality spare parts at India Centric prices, extended warranty programs, toll free number to register customer queries/complaints, regular equipment health checkup service camps etc, to enable Atlas Copco Construction Technique to enhance its offering to the end customer.

Trained operators & technician and preventive and periodical maintenance play a big role in equipment performance.Please brief us on your services.
Atlas Copco Construction Technique Service has a strong team of highly skilled and trained service technicians. These technicians play a key role in preventive maintenance as well as resolving equipment breakdowns. The Construction Technique service team successfully conducts over 30 service camps every year where free inspection of equipment is done and parts are offered at special discounted rates. Service is a core strength of the Atlas Copco Construction Technique business and is a key contributor in creating customer delight.

What kind of growth do you expect in next two-three years for your company and innovative strategies to stave off toughening competition scenario?
Atlas Copco Construction Technique is a growing business area in the Atlas Copco India group. We hope to double revenues in the next 3 years through continuous product innovations, new product launches and empowering customers through value additions and stronger partnerships. We are also ably supported with our own competent sales force coupled with our 50+ strong distributors and growing each year.

How are you planning to participate in the forthcoming CE industry mega event Excon to be held in November this year at Bangalore? What would be the focus of your projection in this mega show?
We are participating as an “Associate Sponsor” in Excon 2013. We will be showcasing key products from our Construction Technique Business Area such as Hydraulic Attachments, Portable Compressors, Road Equipment, Lighting Towers and products for Light compaction & concrete. Excon 2013 will also be a platform to showcase our new products in the demolition equipment segment and new Road Equipment from our Dynapac range.

Our focus will be to heighten the customer experience in a unique and impactful manner. The live demos will result in innovative customer interactions which will contribute towards increasing the flow of prospects/customers.

Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, Atlas Copco delivers solutions for sustainable productivity. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2012, Atlas Copco had 39800 employees and revenues of BSEK 90.5 (BEUR 10.5). Learn more at www.atlascopco.com.

Atlas Copco’s Construction Technique business area provides construction and demolition tools, portable compressors, pumps and generators, lighting towers, and compaction and paving equipment. It offers service through a global network. Construction Technique innovates for sustainable productivity in infrastructure, civil works and road construction projects. Principal product development and manufacturing units are located in Belgium, Germany, Sweden, China and Brazil.

Construction Tools is a division within Atlas Copco’s Construction Technique business area. It provides hydraulic, pneumatic and petrol-driven breakers and drills and of hydraulic breakers and silent demolition tools attached to carrier units. The products are marketed under the brand name Atlas Copco. The equipment is fabricated in Sweden, Germany, India, Bulgaria, China and South Africa and sold via a worldwide operating sales and service organization.