LiuGong

We have introduced a 22-ton electric excavator in India, the first of its kind in the country by any OEM and our electric wheel loaders offer zero-emission operations, reduced noise, and lower operating costs, leading to significant cost savings and minimized environmental impact.
Rohit Punjabi - Vice President & Business Head, LiuGong

What cutting-edge innovations in your product line has the company introduced for use in construction of mega infra projects?

For mega infrastructure projects, we are offering advanced CEV Stage V equipment, such as new wheel loaders, soil compactors, motor graders, and tandem rollers. All of these are designed to meet stringent emission standards and enhance productivity while reducing their impact on the environment.

We have developed electric wheel loaders and excavators. Our electric wheel loaders, available in 2-ton, 3.5-ton, and 5-ton models, offer zero-emission operations, reduced noise, and lower operating costs, leading to cost savings and improved sustainability. Our 22-ton electric excavator is the first of its kind in the country. Our large excavators are equipped with powerful engines and advanced health monitoring systems, making them ideal for heavy-duty tasks in mining and construction. These features help improve machine efficiency and minimize downtime.

What are the AI and IoT technologies present in LiuGong machines?

LiuGong integrates AI and IoT technologies into its equipment for real-time monitoring, predictive analytics, and autonomous operations. This enables proactive maintenance, reduces downtime, and optimizes resource allocation.

Our iLink Telematics System enables real-time monitoring and predictive maintenance of equipment, ensuring higher availability and efficiency. It facilitates proactive decision-making and reduces maintenance costs.

We have been developing autonomous systems for performing tasks such as excavation, material handling, and concrete pouring without human intervention, thereby reducing the risk of human error. We have also developed smart inspection sites by using AI-powered tools for site inspections and data collection. These innovations enhance project planning, leading to better outcomes and faster deliveries, and addressing the growing demand for efficient and reliable construction equipment.

What are the company’s innovations to reduce energy consumption, minimize carbon emission, and incorporate green technology in its equipment?

We have introduced electric wheel loaders and electric excavators for the first time in India, marking a significant step towards cost savings and liability reduction for our customers. Our Stage V equipment has further minimized environmental impact.

Globally, we have developed a robust green ecosystem. We have sold approximately 6,500 units across 35 countries, resulting in a carbon emission reduction of 330,000 tonnes—equivalent to planting over 18 million trees.

In the first three quarters of 2024, LiuGong achieved a revenue of 22.856 billion RMB, reflecting a year-on-year increase of 8.25%. The net profit reached 1.321 billion RMB, reflecting an impressive year-on-year growth of 59.82%. These efforts underscore our commitment to sustainability, our success in reducing environmental impact, and our ability to deliver cost-effective, operationally efficient solutions to our customers.

How is LiuGong optimizing its manufacturing processes and addressing supply chain issues without compromising quality and delivery timelines?

Our manufacturing process optimization system, called aPriori, is a software solution that helps customers reduce production costs by up to 40%. It provides accurate, automated cost estimates during the design phase, helping to prevent cost overruns and delays.

We have also established a digital factory model known as the LiuGong Master District Factory, which utilizes digital models to estimate expenses for various production methods. This model ensures precise cost estimation feedback.

We follow a value-oriented procurement and supply chain management policy with transparent and scientific procurement processes. This approach ensures that suppliers are effectively integrated into the company's business operations in an efficient and secure manner. We also have strategic collaborations with numerous component manufacturers, such as ZF, which helps us initiate cost studies and optimize our operations.

How is the company supporting the MSMEs to ensure high quality component production?

We are actively participating in competitive training programs focused on modern manufacturing techniques, quality control, and new technologies. We have established skill development centers and collaborated with industry experts to provide hands-on training and certifications. We offer comprehensive mentorship programs that pair MSMEs with experienced industry mentors to guide them through innovative processes.

We have established collaborations with government programs, including those by the Ministry of Micro, Small, and Medium Enterprises, which offers various skill development and cluster development initiatives to enhance productivity and competitiveness.

Our focus is on technology upgradation, and we provide a credit-linked capital scheme to support the development of technology-driven production capabilities. Public-private partnerships are essential for creating a robust ecosystem that fosters MSME growth.

What initiatives or support mechanism by the government should be in place to attract multinational component manufacturers and investment in high quality component manufacturing for the equipment industry?

India is still lacking in the development of world-class components. There is a need to provide financial incentives, infrastructure development, research and development support, and key advancements.

Improving the ease of doing business in India is crucial to attracting multinational component manufacturers and encouraging investment in high-quality component manufacturing for the equipment industry. Quality standards and specifications are essential. Government and industry collaboration, as well as public-private partnerships, are necessary to ensure mutual benefits for both parties. Policy frameworks play a vital role in this process.

Technology transfer from the parent company, whether it is a European or Japanese company, must be smooth. Once these companies come to India, they should be able to market themselves. The government needs to create channels for continuous feedback and dialogue between the governments, discuss the challenges and improve policies. They should provide local manufacturers with access to government procurement programs, trade agreements, export promotion initiatives, and, of course, a robust feedback mechanism.

The government needs to create channels for continuous feedback and dialogue between itself and local manufacturers to address challenges and improve policies.

Please suggest a policy reform(s) by the government that would have an immediate and positive impact on the global competitiveness of India’s CE industry.

I would suggest increasing funding and incentives for R&D in construction equipment technology, with a focus on sustainable and innovative solutions. This would encourage companies to invest more in developing cutting-edge technologies, leading to more efficient and environment friendly equipment. It would also give India a competitive edge in the global market.

Next is expediting regulatory approvals for new construction technologies and reducing bureaucratic hurdles. This would accelerate the time to market the new products. It would reduce the lag between development and market use, allowing companies to respond more quickly to market demand and technological advancements, thereby enhancing the industry's agility.

I also recommend strengthening the supply chain capabilities. Policies supporting local manufacturing of critical components and reducing dependency on imports would help build a more resilient supply chain. This would ensure a more reliable and cost-effective production process, minimizing the risk of disruptions in operations.

Enhancing public-private partnership projects is important. Promoting more such initiatives would create stable demand and build professional capacity, fostering collaboration between government and private sectors. By implementing these policies, the construction equipment industry in India can enhance its global competitiveness, innovation, and contribution to infrastructure development goals.

What is LiuGong showcasing at bauma India 2024?

Since we are primarily focused on electric machines, we are showcasing zero-emission loaders, excavators, and material handling equipment, designed to reduce environmental impact while maintaining high performance, aligning with sustainable construction practices. Our Stage V equipment also supports the theme of innovation for nation-building.

Our newly introduced refurbishing services for wheel loaders and road equipment aim to extend the life of the machines and lower their costs. This approach ensures long-term cost-effectiveness and promotes sustainability.