The announcements made by government have reassured that the infrastructure sector will reinvigorate soon, and we’re confident that the government will continue to take corrective measures to bolster the market situation and the economy.
The construction sector may take some time to recover but when it does, it will have a positive impact on equipment demand as well.
COVID-19 has been an unprecedented occurrence and has affected businesses worldwide. The government is trying its best to contain the situation and we’re hopeful the next quarter will be better. As short-term measures, the government has allowed resumption of construction and manufacturing activities on priority basis and immediate payment release from PSUs. It also announced an economic stimulus related to the construction sector, which will hopefully start helping in easy clearances and fast completion of projects.
As long-term measures, the government has announced strategies to revive the CE sector, such as focussing on doubling the construction projects which will add to more demand generation. Recently, NHAI announced the removal of land acquisition hurdles which will speed up the project completion rate. The MSME scheme announcement is another scheme which will enable vendors to return to strong business and strengthen India’s manufacturing sector. The construction sector may take some time to recover but we’re hoping it will have a positive impact on equipment demand as well.
The government is trying its best to secure the lives of the people and at the same time maintain the stability in the market. The announcements made by the government have reassured that the infrastructure sector will reinvigorate soon. What impact these announcements will have on the recovery remains to be seen, but we’re confident that the government will continue to take corrective measures to bolster the market situation and the economy, further.
Our financial arm CNH Capital is making enough capital available for customers who wish to make purchases and has also come up with a 48-hour loan approval policy.
To effectively tackle this situation, companies also need to step up and address the concerns of the market and the customers. To revive the industry, they need to create quick and effective solutions which give customers the confidence to invest in such products and services. At CASE, our financial arm, CNH Capital is making sure there’s enough capital available for customers who wish to make purchases. To provide faster solutions to our customers we have come up with a 48-hour loan approval policy. We’re hoping that any liquidity crunch is alleviated through these efforts.
These uncertain times call for harmony and collaboration between contractors, OEMs, rental companies and financial institutions. A confluence of this kind is likely to lead us towards an ideal business scenario which benefits all stakeholders, hence, all of us should strive to work towards this.
Since this pandemic has affected all commercial activities, it is imperative that for a faster and more efficient recovery, all parts of the machine come together and work towards building the future. At CASE, we have identified the benefits of such a collaboration and have acted on it. Our financial arm, CNH Capital, works hand in hand with our AG and CE businesses. We also have a strong network of dealers who work in real time with contractors and OEMs. Currently, we’re also exploring the rental market with a few of our machines and are doing our best to ensure the revival of the market.
The entire market is currently in a lull; however, we hope to see it recover soon with the government’s initiatives. A report by NIP suggests that the new and upgrading infrastructure projects with `111 trn of investment will be key to raising India’s competitiveness and making it a `5 trn economy by 2025. Hence, the opportunities are on the way and CASE India is ready to make the most of them in the upcoming period.
The Government’s keenness in promoting the use of advanced technology augurs well for the sector. CASE has always been a technology first brand. We are firm believers in adopting technology that enables us to work better – our machines are prime examples of this. Whether it is the revolutionary FPT engine or the state-of-the-art Telematics system – we like leading from the front and will continue to do so.
The government has also announced measures to facilitate hassle-free business set up in the country. As per the industry reports, some industrial parks and additional geographical areas are also being earmarked for the purpose. This situation will lead to better R&D, infrastructure, logistics, delivery etc. and subsequently a more robust product line in the country.
In the wake of a pandemic which has sealed all borders between countries and people, it has become important to be self-sufficient and reliant in order to survive and thrive further. The government has also re-emphasised focus on the ‘Make in India’ movement which carries the same sentiment. Additionally, many countries have expressed interest in relocating their manufacturing plants to India. If planned well, this could prove to be a defining moment for India and for the construction equipment sector which is highly dependent on import of critical components.
At CASE, we have a manufacturing plant in Pithampur, Pune, and in Noida where we’ve been locally producing our world-class construction equipment range; this brings us a distinct advantage. Since most of our machines feature our own engines such as the revolutionary FPT engine, we’re able to project and fulfil our requirements for parts and critical components more accurately and timely, thus ensuring no gaps in the supply of the same.