Changlin India Looks Stronger in the Emerging Market

Changlin presence in India is well-established. It will go for aggressive expansion plans including putting its factory on stream during 2009. Changlin India is preparing well to meet great opportunity as well as challenge now," says Mr. Wice Li, Executive Director, Changlin Engineering Services India Pvt Ltd, in an exclusive interview with S.K.Khanna.

Changlin Company was one of the important participants in the bauma China 2008. What has been the response of its participation in the Fair, particularly the business enquiries it received in response to its new equipment and machinery unveiled there? How does such trade exposition help promoting business and technical transfer mechanism, bilaterally and internationally?
Bauma China 2008 has become one more success for Changlin Global Promotion Programs. Changlin has participated in world-class exhibitions at Munich, Moscow, Las Vegas, UAE Big 5, etc. Even during global recession, Changlin has steadily been developing across the world. As directly owned and supported by Chinese Central Government, the company will grow faster in 2009, and India is one of our vital focus. It is our pleasure to welcome huge visitors from India, which shows the stable growth of Indian infrastructure. This makes our confidence stronger to develop Changlin more in future. Changlin started its factory plan in India in 2008, and will build Changlin India to central of Changlin at South Asia, closer and faster to Middle-east and African market.

Please tell us something about the company, its evolution since 1960s, its technical collaboration with world construction equipment leaders, its technical assimilation, absorbtion, manufacturing facilities & their locations, technical expertise developed, and company’s broad product range.
Changlin was set up in 1961 and at present, it is the only construction machinery manufacturer undertaking by China Central Government. Changlin started cooperation with Komatsu since 1970s. In 1995, Changlin set up joint venture factory with Komatsu and Hyundai separately at Changzhou, China. It has technical joint venture with Dynapac for soil compactors. Changlin does provide fabrication components for world-class company like Ingersoll, Atlas Copco, Bomag, and so on.

Changlin owns the National Technology Center and Postdoctoral Research Center and this is the earliest company in the field of construction machinery to improve its management level by propelling informationlization, presently ERP system. Changlin was the first one in construction machineries to be awarded certificates of ISO9001 and ISO14001 in China and is located at Changzhou city, 180 km west to Shanghai. Factory size is 140 acres and will expand to nearly 300 acres in 2009 end. Product range includes: Wheel loader, Clamp-loader, Side-tilting loader, Wheel dozer, Motor grader, Soil compactor, Tandem roller, Pneumatic tire roller, Paver, backhoe loader, Skid loader, Excavator, and so on.

China and India are emerging as world’s powerful manufacturing source for sophisticated construction equipment. How can the brand Made in China and Made in India be promoted to take advantage of emerging global marketing opportunities in this sector and marketing activity synergized to each mutual advantage so as to stay ahead of others?
Both China and India have their own strength. China has the well-established industry foundation and system, which provides the stable platform to Chinese construction machinery manufacturers. Attracted by the huge requirement and lower cost in China, world-class construction manufacturers have entered China and transferred some technology at amazing speed, gradually China will break the monopoly of western countries and become one of the stronger players in the world. However, compared with the fast growing sales, weakness in management becomes more negative and barrier for Chinese manufacturers to upgrade to higher level.

India has long history of construction machinery manufacture. World brand like Caterpillar, JCB, Volvo, and IR have established well in India for more than two decades of time. Supplier network is quite well and good supporting to construction machinery industry. India has the world's first class IT industry that definitely provides the strong R&D and management solutions and are most needed in China.

Considering the rocketing of Indian infrastructure speed and world trend of shifting manufacturer center from China to India, I personally think the following advantages for China and India to shake hands together and stay ahead of others:

1. China and India set up joint venture in India and JV will have the latest technology from China.
2. The lower material cost and HR cost will strengthen product ability in competition.
3. Indian IT solution will make JV world class management, which will organize multinational company well, power the R&D, and reduce the waste due to ineffective management. JV can also provide swift response and service to customer globally via such system, which is one key factor for big success.

The world economic scenario is under liquidity pressure and many countries including China have announced bail out packages to boost the economy. China has also announced a big economic package to infuse and boost growth in various sectors. What are the main features of Chinese economic package as related to energize infrastructure sector and create opportunities for the market of construction equipment and machinery?
China Central Government has announced approximately Rs 4,20,000 crore package to boost economy. Big part of this package will be invested for infrastructure, including more National Expressway, Nation-wide bullet train system and upgrading present railway, more airports, more bridges, etc. All these will definitely create great opportunity for construction machinery industry in China. As China Central Government company, Changlin will benefit more from these packages.

Changlin presence in India is now established­­—what has been the response from the Indian market to its products and services and how these are being further strengthened. Will the present global financial pressuremake any impact upon its plans in India, particularly its plan to set up manufacturing facilities with its strong debut of product range flowing from the new facility to serve the Indian market?
Growth of Changlin in India is slow but stable since 2005. Changlin is very careful with its products and services before fast expanding. We spent around 3 years to get feedback from our customers and improved our machines to suit local environment better, also has the creative service plans all over India. Now, Changlin is quite confident to expand from Hyderabad to the whole country. Even there is some difficulty for Indian infrastructure industry, we are still confident that this is the temporary period and recovery will come soon before mid of 2009. So in 2009, Changlin will make aggressive expansion in almost all provinces of the country. Meanwhile, Changlin will put its Indian factory from drawing to real building. The local factory will strengthen its ability to provide machines more earlier and service better, and most important–more confident of customer to us–Changlin India!

What new enabling policy provisions your company expect in the India’s forthcoming Budget to give push to its business in India?
I think the question may refer to our expectations to the policy related to infrastructure in India. According to me, no matter who is the policy-maker, development is no doubt the No.1 issue. The huge requirement will boom the construction machinery industry, lots of new manufacturers will join the present competition. Now the competition is becoming tougher day by day. Barriers to importing may be set up to protect domestic industry. More detail regulation will be issued to organize construction machinery industry well so as to ensure healthy growth. Changlin India is preparing well to meet great opportunity as well as challenge now!