Atlas Copco : "We see the challenges of Indian market as long-term opportunities”
While you find the Indian market offers large scope of business expansion, although beset with challenges; do you find the challenges in India akin to the emerging markets or particular to its origin in India?
To place the appropriate products, are there any necessary improvisations being carried out, specifically taking into consideration extended usage of the machines, adverse operating conditions, improper maintenance schedule, and deficient knowledge of operators in India?
What are the product support services and operators' training being offered by Atlas Copco?
To ensure that our equipment deliver high on uptime and minimal maintenance, based on extended usage of machines in India, we are supporting the products on site through our 40 dealers, providing parts, components, training, and maintenance support. To ensure timely parts availability, we have recently appointed two logistics service providers who render exclusive tailor made solutions based on our requirements for parts availability. Making equipment owners acquainted to carry out appropriate maintenance, so as to get the benefit of minimal total cost of ownership is a challenging task in India, especially with the unskilled labour who are operating the machines We are continuously organising the trainings at site so as to build enough competence at sites which will contribute to the customer's overall business and inturn will give us goodwill in the long run.
With focus on volumes growth and profitability, what are your plans on localization, vendor development, and commensurate product availability?
Based on volatile demand situation; how do you ensure business viability of your dealers? How do you look towards second hand business in India?
Since our dealers distribute wide array of products such as compressors, light towers etc from our stable, they get naturally cushioned from business risks that may arise owing to lopsided demand from any one segment. We have not seen too much downward spikes in our business volumes which ensures that our partner's business remains viable in a long term perspective. Atlas Copco group has many other divisions and we try to look for synergy business and extend the product ranges to our existing partners as a first choice which further ensures that their viability sustains. We look for sustainability in whatever we do, be it operations, profitability, productivity, partnerships, etc We provide support to our dealers through timely parts support and adequate training to their personnel, allowing them to offer appropriate solutions to the customers. Globally we are also investing in used equipment business but in India, we have not invested in this business. We understand that the Indian Customer takes pride in owing the machinery rather than renting it for a long time as they are emotionally attached to their machinery. Further to add here, in India, most of the used equipment business in unorganised, owing to complex tax structures. Another reason, extended usage of the machines here, owing to larger volumes of jobs, they are rendered commercially unviable for reconditioning and sales. Hence, currently we are not looking at selling second hand or used equipment business as a viable option in India.
Published on:
06 May 2014
Published in: NBM&CW May 2014
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