"Hyundai constantly strive to meet customers' expectations and demand through its voice of customer programme. At Hyundai, we try and understand challenges faced by customers and the pressure on their profitability. In order to offer techno-commercially competitive product, we have customized our products suiting to the Indian application environment where the deliverables are optimized," says Mr. Prabhat Tiwari, Head Marketing & Key Accounts, Hyundai Construction Equipment India, in an interview with S. K. Khanna.
How do you view the potentials of the construction equipment market in India and how you rate Hyundai in the emerging Indian market scenario?
India is world’s seventh largest country by area and is largely untapped with respect to the construction equipment sector as such. The construction equipment industry in India has witnessed consistent double digit CAGR growth over the past few years and is expected to grow at same pace in years to come. The earthmoving segment is driving the overall industry with strong demand emanating from government backed infrastructure projects. The segment is poised for an unprecedented CAGR of around 18% during FY 2011 – FY 2014.
The growth for CE market is largely driven by the massive investment in the construction industry from both public and private enterprises in recent years. Multibillion dollar investments made in constructing roads, ports, power plants, telecommunication sector, urban infrastructural developments, etc have paved the way for construction equipment demand to grow substantially in recent years.
In all the infrastructure and development projects, earthmoving equipment contributes to a whopping 57% of the total CE sector. And going by the rate, Hyundai has emerged as a key player in industry over the past couple of years and today look at an exponential growth.
Hyundai offers value to its customers through customized products offering by lowering their cost of operation and thus increase profitability. This win-win situation makes Hyundai a key partner in customers business.
A large number of global players in the CE industry are joining the Indian construction equipment market. How do you view the toughening competition scenario both in the domestic and international equipment market?
As India being an emerging market, everyone is vying to capture the untapped market. With huge growth potential, healthy competition among OEM offer multiple product options to customers. This is an encouraging scenario where the customer as well as manufacturer will benefit by way of being competitive and will constantly focus upon increasing efficiency and introducing technology which will save cost and environment.
The Indian customers are very sensitive on the price front, so how is Hyundai maintaining equilibrium between affordability, quality and reliability?
Hyundai constantly strive to meet customer expectations and demand through its voice of customer programme. At Hyundai, we try and understand challenges faced by customers and the pressure on their profitability. In order to offer techno-commercially competitive product, we have customized our products suiting to the Indian application environment where the deliverables are optimized.
Could you please tell us that how difficult it has been for the manufacturers to keep the equipment price stable with the ever increasing input cost, higher interest rates and induction of Bharat III engine?
Rising input cost and interest rates definitely put pressure to the bottom-line as well as offering to the customers. We optimize the cost by way of increasing our efficiency and customizing our products to application needs.
With increasing fleet size, managing of assets has become difficult for equipment owners, how manufacturers are helping them to keep equipment fit for optimum utilization?
We at Hyundai conduct various training programmes on site as well as classroom training to increase efficiency and skill of manpower. We have various level of trainings for operators, mechanics and engineers who manage the fleet. Apart from this, our dealers are fully equipped to provide customized maintenance contracts suiting to the needs of the customer depending on the fleet size and type.
What are the products manufactured by Hyundai in India and level of localization of these products?
Hyundai manufactures excavators ranging from 8 to 30 tonne at its Pune plant. With customizing products to customer needs, Hyundai emphasizes on localization and upto 70% of the equipment is localized. This enables equipment uptime and increasing customers profitability.
What is the focus of your participation in Excon-2011? What are the new products and services being proposed to be launched at this mega event?
Hyundai will focus on its range of indigenized excavators, specifically customized for India operations. During the exhibition, we will display 7 excavators ranging from 8 to 50 tonne capacity. The wide range of indigenized products with various attachments like rock breaker, clamp-shell bucket, etc. will be the main focus for the event. We will also launch the 30 tonne excavator R340LC-7 during the event. The machine has undergone various applications to suit the Indian market.