"With huge growth potential in the Indian infrastructure sector, we have carried out the required upgradation in our manufacturing facility which is equally complemented with R&D and training centre at Pithampur. LiuGong India Plant was set up on 44 acres and fully equipped with the state-of-the-art facilities; R&D, sales service and spare parts centre. Currently, the plant has a production capacity of 3000 units of Wheel Loaders i.e. CLG835 BSIII and CLG856 BSIII annually. This production facility has enhanced the success story of Liugong in the Indian market and it is also expected that by the end of this year we would start manufacturing motor grader CLG414BSIII. At Excon, we are displaying our Excavators, Wheel loaders, and Forklifts for our target audience," says Mr. Sunil Sapru, President LiuGong India, in an interview with S. K. Khanna.
How do you rate the future business prospects of earthmoving equipment in the next 2 to 3 years in India, in view of the ongoing thrust on the infrastructure development? Where do you place LiuGong in the emerging business scenario?
Everyone is looking at India as the growing market with an impressive 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.
Further with showcasing our products at various events, exhibitions, road shows and other applications in various infrastructure projects, we received overwhelming response, therefore we are looking for a substantial growth in next 2-3 years. This is again being comple- mented with the infrastructure growth across all sectors as seen in the past and as announced by the Government. We expect a substantial growth in the near future as well. By the middle of next decade, we expect LiuGong India to be one amongst the largest companies in India and will play a major role in shaping India’s future development.
Despite demanding top quality and high end products, Indian customers are very sensitive on the price front. As manufacturing locally is the only way out in bringing down the equipment cost, what are the products manufactured by LiuGong in India and level of localization of these products?
LiuGong India is the leader in providing the best value in equipment and support services for customers. The investment in the local manufacturing capacity has been one of the drivers of our growth and to become competitive along with innovation, the continuous development of new products and a strategy of increasing our focus on emerging markets where the potential for growth is enormous. Liugong India has started manufacturing its wheel loaders CLG 835 BSIII and CLG856 BSIII at its Indore plant with a manufacturing capacity of 3000 loaders annually. The expanded production has enhanced the success of Liugong in the Indian market.
Liugong India plans to introduce the production lines of motor graders and rollers; what is the progress in this regards?
With imminent growth in the infrastructure, we have made requisite commitments in our manufacturing facility and equally complemented with R&D and training centre at Pithampur. LiuGong India Plant was set up on 44 acres fully equipped with the state-of-the-art facilities; R&D-Manufacturing-Sales-Service-Parts centre. Currently, the plant has a production capacity of 3000 units of wheel loaders i.e. CLG835 BSIII and CLG856 BSIII annually. This production facility has brightened the prospects of LiuGong in the Indian market and is expected to begin manufacturing of motor grader CLG414BSIII by the year end.
A large number of Chinese companies are joining the Indian Construction equipment bandwagon. How do you view the toughening competition scenario both in the domestic and international equipment market and what differentiates Liugong from its nearest competitors?
No doubt that competition in this segment is very intense with some more new Chinese entrants. Liugong with strong commitment to its customers have developed trust with its long-term strategy. Liugong has always delivered best value proposition to the customers and that sets us apart from our competitors. Being the No.1, wheel loader manufacturer we have developed state-of-the-art product line with various attachments sufficing multiple application, customization therefore enhancing the efficiency and value for money. The foremost factor that differentiates LiuGong from the competition is its image in the market. The products manufactured by us are most economical, sturdy in design, user-friendly and result oriented as compared to other products in the market. This image has been a result of over 50 years through its experience within product line. Moreover, our wheel loaders are ARAI certified.
The key to attract customers for almost all the earthmoving machines is the productivity potentials and their fuel efficiency? Don’t you think that imparting proper training and improved working conditions for operators must be given more importance ensuring that these machines function to their potentials, how do you address these issues with the end users?
No doubt that the key to attract customers for almost all the earthmoving machines are productivity, potential and high efficiency, but the companies should also focus on training and maintaining the highly skilled manpower, as the performance of the machines depends on the after sales support rendered by the organization. So keeping this fact in view, LiuGong is vigorously conducting. The operators training programmes at the site for the customers. We also conduct classroom training and provide hands in training at our Pithampura plant as well as at our training centers in Indore. Apart from this, we also provide modules, regular health checkups, customized services, spare recommendations, fleet maintenance contract and MARC contracts.
Availability of the after sales supports system including easy availability of the spare parts is the customers’ main concern. In view of this, kindly expatiate what are the sales and after sales services being render by Liugong in the country.
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, Kolkata, Chennai, Raipur, Hyderabad, and 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 in near future. We have always been Customer driven and Close to them.
What is the focus of your participation in Excon-2011 and what types of equipment are you going to display at the event?
With various advancements in equipment technology, manufacturers and suppliers have a lot more to offer to the construction and mining industry. Excon will bring together the best Indian industry to offer to the construction fraternity, under one roof. LiuGong India will be benefited as this show offers an exceptional opportunity to showcase its products and services to its target audience. This time at Excon, we are displaying our Excavators, Wheel loaders, and forklifts.