LiuGong expects a substantial growth and by the middle of the next decade, we surmise LiuGong India to be one amongst the largest companies in the country that would have a major role to play in shaping India’s aftertime development. Based on the market analysis and looking at the future potentials, we have made requisite commitments in our manufacturing facility and have set up vendors base along with key strategic suppliers, says Mr. Sunil Sapru, President, LiuGong India in an interview with S.K.Khanna.
It is quite sometime now you launched your products in India. What has been the response so far and which product attracts higher demand?
Right from inception, our belief has always been in creating long-term partnership, a total solution provider ensuring confidence, faith and bringing in mutual benefit in a fruitful and meaningful manner, bound to yield strong relationship. Simply, if customer has developed faith there may definitely be precedence of meeting expectations all the time and on time.”
We have kept our basics very simple being customer oriented, market driven and willing to change. Further it brought impetus in succeeding by convincing our customers with our long-term commitment/strategies, with better returns and to meet their expectations from time to time which has proved us the most reliable solution provider. We have entered into the Indian market with commitment being the total solutions provider to the customers in terms of quality, reliability, durability, and most importantly its cost effectiveness. The products in place have exceeded the reputation and the customers have appreciated its performance and returns in terms of outputs, productivity, serviceability, parts availability, and product support.
With LiuGong being the world’s largest Wheel loader manufacturer, globally revolutionized the material handling concept, minimising the cost of its ownership and operation, thereby able to prove its credentials over the years, has also been proved in India. Further LiuGong’s strength has been substantiated in various segments–Construction Earthmoving and Mining across India where we have exhibited our active presence of product range – Wheel Loaders, Excavators, Motor Graders, Compactors, Dozers etc. Out of its entire product range, one product that has continuously earned laurels for the company is the Wheel Loader, especially the 5 T class machine – CLG 856. The durability, application versatility, fuel efficiency and cost effectiveness has made this machine a favourite amongst all its end users in various segments. This is manifested in the form of repeat orders which are coming from large corporate clients as well as from retail customers year after year. With other products Excavators, Motor Graders are also recording good demand and repeat orders is the testimony of product excellence.
How is Indian market different from that of Chinese?
In China, the CE market is dominated by Wheel loader in last 30 years. But in the past 10 years, Excavator sales volume has dramatically increased due to more suppliers and its versatility and efficiency in some applications i.e application based.
In India, CE market is dominated by backhoe loader for past 30 years, and recently excavators are replacing the share over here too. Further with the time bound projects, the market with product awareness is taking definitely a different shape, therefore, as per market analysis wheel loader will replace backhoe loader in the most loading applications. With LiuGong starting the supply of Wheel Loader from Indian factory and it is the cost-effective solution for customer who is bound to have an impact on Wheel Loader market share.
With Chinese construction equipment, manufacturers introduced fully global competition in itself and bringing Value for Money are the right solution providers. Owing to the booming economy and liberalization, worldwide equipment manufacturers and component suppliers have succeeded in setting facilities or joint ventures in China and bring in Return of Investment.
It is a common perception in India that Chinese companies produced good products but are unable to provide effective after sales service, what is your opinion about it?
We adopt different business model based on its requirements i.e to provide value based solution to customers at competitive prices with high returns, Value for Money with low operational cost, total solution to our business associates (one stop shop) and the right vendor choice. The products we offer are based on its adaptability and its versatility to various applications and its needs or requisite applications with specific attachments are keys to its success.
LiuGong India with its core values of being Customer Oriented, people foremost and creating values through cooperation has set up its base in India.
With these objectives and our commitment to be Top Company in India with effective network and end to end solution provider, we have our presence in major cities/metros (Delhi, Mumbai, Kolkatta, Chennai, Raipur, and Hyderabad, Udaipur) supported with logistic/parts centre in Chennai and Indore. Further to strengthen our support in being Close to the Customer, we have set up our base with 15 dealers and 28 outlets across the country which will further be extended as scheduled in near future. We have always been Customer driven and Close to them.
How do you see your business in India in next 2-3 years?
Everyone is looking at India as the growing market with growth across all its sectors. We are quite optimistic with the infrastructure growth; therefore, we expect a minimum growth of 25-30%.
Based on the market analysis and looking at the future potentials, we have made requisite commitments in our manufacturing facility and have set up vendor base along with key strategic suppliers’ basis similar growth.
Further with showcasing our products at various events, exhibitions, road shows and other applications in various Infrastructure projects, there is overwhelming response therefore we are looking for a substantial growth over next 2-3 years. This is further being complemented with the infrastructure growth across all sectors as seen in the past and as announced by the Government, therefore, we expect a substantial growth. By the middle of next decade, we expect LiuGong India to be one amongst the largest companies in India that would have a major role to play in shaping India’s future development.
Do you have any other expansion plan in India in near future?
With imminent growth in the infrastructure, we have made requisite commitments in our manufacturing facility complemented with R&D and training centre at Pithampur.
LiuGong India Plant has been set up covering 44 acres fully equipped with the “State of Art” facilities; R&D-Manufacturing-Sales-Service-Parts centre, having a production capacity of 3,000 units annually in first phase and other products of the company will be launched in the coming phases. Further we have set up vendor base along with key strategic suppliers with huge commitment to our value chain to meet the challenges. The company has in place a fully operational R&D centre where we are developing products to meet the local environment/conditions, applications and allows us to showcase our innovation, strength and re-align our strategies to meet demand and commitments in Indian Market. This will ensure our users’ end to end solution and help the customers to make the right product choice.
Further with the availability of the latest “State of Art” training centre will help us to provide skilled manpower since there is acute shortage at the moment in the country. It is also used to train our dealer and personnel as well.
LiuGong India plant will have 3 phases attaining FDI investment of around Rs.500 crore in future.
Tell us about your participation at bauma china and other exhibition.
With upcoming events and exhibitions viz IMME 2010, BAUMA China, Constru, bc India 2011 etc are the major events in construction machinery exhibition attracting all, the small, mid and large contractors as well as the big corporates in order to know about the recent development in the market and new technologies introduced. These Events are quite helpful as they provides an excellent opportunity for developing network among customers, technology and the expo is vital for us in terms of showcasing all our product range.
LiuGong has been exhibiting in all the events and it is a very good opportunity to communicate the strong set-up of LiuGong globally and to promote its technologies. The products being exhibited will further enhance the competition level and LiuGong is going to change the whole market dynamics by showcasing its strength, expertise over the years in Earthmoving, Construction and Mining products with its latest innovations. The products clearly display its customisation, ruggedness and reliability.
Participating in forthcoming events will re-strengthen our bond with users who have trusted and have complete confidence in us.