Leeboy India: “We will refrain from devaluing our standards”
Leeboy by relative standards is a new entrant into the Indian construction equipment industry. However, Mr. Ramachandran is relaxed and composed as he takes a gaze at the factory shop floor below from his cabin, assembling motor graders, excavators, and backhoe loaders.
The plant is yet to utilize its optimum capacity. However, Mr. Ramachandran says, "We do not want our brand to be limited to cheap products where the features and specs have been diluted to lower costs. Rather, our strategy is to maintain our long-term reputation through placement of reliable, fuel efficient equipment based on advanced operating features for extended duty cycles. The strategy has been bearing fruits, evident by our repeat orders in the subdued market, featuring high levels of brand substitution."
Adding substance to the claim he explains, "The market has been passing through extended retrograded business cycles across equipment verticals. Further, segments like motor graders in India are yet to attain substantial critical mass with volumes hovering between 400-800 units. Hence, to have discrete existence for product promotion, it is pertinent to place equipment with high engineering value."
He continues, "To ensure reliability of Leeboy 985 and Leeboy 785xl-2, motor graders being produced at our Bengaluru plant, we have got procurement alliance based on strong co-engineering with components suppliers from Europe of repute. One of them is ZF for the transmissions. The ZF Ergo Power 6WG 160, heavy duty, 6F/3R speed automatic power shift transmission with an electronic control unit, with integrated torque convertor, lock up clutch and stator wheel as a standard feature. Leeboy graders are powered with Cummins 173 hp engines@2500 rpm and 150hp@2200rpm. Based on our alliance with the Cummins, we have ensured the engines feature high levels of integration with the equipment to deliver highest levels of reliability. The engines have mechanical fuel pump which protects it from low quality fuel at remote job sites. The graders are fitted with attachments comprising front scarifiers, push block, heavy duty rear mounted scarifier cum ripper. There are rugged mid mounted scarifier in our graders, available as option when more down force is required and is used with a push block or dozer attachment in front. Engines are also available in CRDI version from the Cummins QSB and QSL ranges on request for areas where good fuel is available"
"The other technical attributes of the graders are advanced hydraulic systems featuring axial piston pump with independent, post compensated, proportional valve with over centre valve on all functions. This hydraulic system provides exceptional responsiveness to multiple simultaneous hydraulic functions. The graders are fitted with an enclosed air conditioned cabin and an adjustable operator seat and tiltable steering column. An interactive diagnostic programme with electrical interlocks prevents misuse of the machine and improves safety," he adds.
Agreeing Mr. Ramachandran says, "Intense price war is prevailing among manufacturers across the brands with indications of margins hitting plateau levels. However, once again, we are confident that our products with advanced features will enable us to make headway in the teeming excavators market, represented by manufacturers from across the spectrum targeting premium products and mass market, resorting to acute price cuts."
He informs, "Leeboy 523, 24 tons tracked excavators, powered by 169 hp Cummins Engines @ 2100 rpm comes with all advanced features making it highly adaptable to Indian worksite conditions. The excavator comes with heavy duty long undercarriage from Berco of Italy, fitted with 600 mm heavy duty triple grouser width shoes and optional 700, 800, 900 mm shoes. Four and half tons counterweight prevents the equipment from rocking while lifting heavier loads. 5.7, 3 and 2.4 meters arms provides the excavators with extended outreach with digging depth of 6290-6863mm. Application flexibility to the excavators is provided through an option of 1.24 or 1 cum general purpose bucket, 0.8 cum rock bucket and 1.6 cum loading bucket. Heavy duty Kawasaki Piston pump, slewing gear box, joystick and pedals, Kayaba control valve and infinitely variable pump power controller provide added reliability and faster cycles to the excavators allowing it to deliver 25% more productivity. Kayaba drive motors provide 100% tractive effort. Track drive is equipped with negative parking brake and dual counter balance valves to prevent overrunning of the excavator on steep down slopes."
Mr. Ramachandran says, "To render added value to our customers, we provide Sandvik 'Rammer' hydraulic rock breakers as package." The breakers made available by Leeboy comprise, L-20C, accumulator type breaker and BR 2166, hydraulic breaker from the reputed Rammer range.
Mr. Ramachandran remains unfazed by the highly complex Indian backhoe loaders market characterized by strong urge of buyers towards brand substitution. This is in case of both existing and new buyers. Urge towards brand swap is essentially on backdrop of attaining total lower lifecycle costs precisely on account of volatile fuel and rising operator's costs. Expectations of getting total product support are higher than before from manufacturers. It makes it tougher for the manufacturers to build up top lines and bottom lines.
Building up fresh sales is equally challenging with owners laying emphasis on optimum utilization of existing equipment, which are relatively young still continuing. As per major contractors, ratio wise, 70% of requirements of the existing/ongoing or newly awarded infrastructure projects will mostly be met by existing backhoe loaders population while 25% of new infrastructure construction requirements, in awarding stage will require new units.
Being firmly positive, Mr. Ramachandran says, "Once again, we are confident of building up our distinct identity and drive sales of our Leeboy 699 backhoe loader, featuring lower maintenance costs and high levels of fuel efficiency delivered by four stroke turbo charged, 4BT 3.9, 99hp Cummins engine @2200 rpm complying BS-3 emission norms. Featuring ruggedness, the backhoe loader has robust high tensile steel structure to cater the most demanding applications. Heavy duty axle from ZF can handle front loads at ease with an integrated 'Sahr' parking brake."
Mr. Ramachandran says, "Despite having all the advanced operating features, getting trained operators are continues to be a major deterrent for the equipment to deliver high level of productivity. Addressing the issue, to provide the right product support, we train operators at training school in Bengaluru with certification. Customers can have the services of fully trained operators by making payment. Maintenance and parts support services are being rendered through our dealer, Voltas and also at our end. Services support comprises Annual Maintenance Contract and other customized packages."
Despite Mr. Ramachandran's confidence on Leeboy's ability to compete in the tough Indian market; is he not concerned that the company's product demand will remain undermined by the overall retrograded off take, that has continued to be in place since 2009?
He admits, "It has brought a slump to sales to almost all the sectors of machinery." However, concluding he says, "The government has banned mining in many areas due to pressure from law enforcing agencies. There has also been legal hurdles in land procurement and project implementation. Further, there has been exit of contractors from many road projects due to liquidity issues. However, the positive impact of the present developments in the infrastructure will be that, we will not see fast growth but sound, safe, and rational development. At Leeboy, we are completely prepared to take on the anticipated growth that will be brought by firm demand fundamentals based on investments from state and private sector participation. LeeBoy is here for the long term and will focus on exports till the Indian market comes back to full strength."
NBM&CW November 2015
