Sanghvi Movers: Leading Crane Rental Industry With End-to-End Solutions

Sanghvi Movers, Asia's largest crane rental company, leverages its extensive fleet of cranes and expertise to address infrastructure growth in India. They offer comprehensive solutions including logistics, erection services, and project management for diverse sectors like wind energy and refineries.

Vice President – Sales & EPC Projects, Sanghvi Movers
Infrastructure development projects across the country are creating a significant demand for crane rental services. SML aims to capitalize on this trend by expanding its fleet and capabilities to meet the growing demand.

Manish Pandey - Vice President – Sales & EPC Projects, Sanghvi Movers

What challenges and opportunities do you see for rental companies in India’s current infra construction scenario?

In recent times, India is witnessing a remarkable boom in its infrastructure and construction sectors, fueled by increased government investment and strategic development initiatives. Sanghvi Movers Limited (SML), Asia's largest and the world’s fourth-largest crane rental company, has been at the forefront of this transformation. Established in 1989, SML has played a pivotal role in numerous industrial and infrastructural projects across India. With a commitment to excellence and innovation, SML continues to set benchmarks in the crane rental industry.

The infrastructure market in India is experiencing significant growth, driven by large-scale urban development projects, railways and metros, and the expansion of industries such as construction, mining, and renewable energy. However, this growth comes with its own set of challenges and opportunities that companies like Sanghvi Movers Limited must navigate to maintain and enhance their market leadership.

The infrastructure market in India is experiencing significant growth

Current Challenges

  • Market competition and pricing pressures: Chinese OEMs have successfully tapped into the Indian market by providing attractive financing options and ensuring quick delivery times. They have also streamlined their supply chains and established local manufacturing. This approach has helped them gain a significant share in the competitive Indian market (particularly among medium-sized players) and meet the growing demand.
  • One-stop solution for customers: The trend of customers seeking a broader range of services from rental service providers is becoming more prevalent, particularly in large-scale infrastructure projects like metro construction. Crane rental companies are evolving to offer comprehensive end-to-end solutions that encompass a wide range of services such as logistic management, erection services, project management, and technical expertise. This trend is also evident in renewable energy projects, including inter-carting services, surface logistics, installation services, and heavy lift packages for the oil and gas sector.
  • Skilled labor shortage: The industry faces a shortage of skilled labor, particularly operators and technicians trained to handle advanced machinery. This shortage can lead to operational delays and increased labor costs. Investing in workforce development and training is essential to mitigate this challenge.

Opportunities

Infrastructure development projects like highways, bridges, and urban development require heavy lifting and specialized equipment, creating a significant demand for crane rental services. Sanghvi Movers Limited aims to capitalize on this trend by expanding its fleet and capabilities to meet the growing demand.
  • Infrastructure turnkey projects: In the hydrocarbon sector, companies are expanding their petrochemical segments, and construction has moved towards a modular form. For instance, SML's recent project at IOCL Barauni for a reputed EPC client involved providing a turnkey solution for managing the end-to-end erection of a +700 MT modular structure at an elevation of more than 100 meters and equipment weighing 1500 MT.
  • Renewable energy projects: The shift towards renewable energy sources, such as wind and solar power, presents a lucrative opportunity for the crane rental market. Sanghvi Movers is a leading EPC service provider for the wind energy sector and has installed 15 GW of cumulative wind turbine generators (WTGs). Installing wind turbines requires heavy lifting and precise equipment positioning, areas where SML can provide specialized services.
  • Emerging markets: Markets in Southeast Asia, the Middle East, and other regions offer substantial growth potential for crane rental companies. Expanding operations into these markets can provide access to new clients and projects, driving growth and diversification for rental companies like us.

What are the forward-thinking strategies at SML to grow its rental business?

SML is poised to provide end-to-end heavy lift and construction solutions for its clients. By focusing on customer satisfaction and delivering comprehensive services, SML aims to strengthen its market position.

By understanding the changing construction methodologies and customer needs, SML has adopted a service model that includes logistic management, technical expertise, and erection services, among others. This holistic approach ensures that clients receive all-round efficient solutions for their projects.

Please give us a case study of a challenging project.

While SML was the mechanical contractor
One notable project is the execution of an Industrial heater for vacuum distillation unit (VDU) at Indian Oil Corporation Limited (IOCL) in Vadodara, Gujarat. The scope of the project was erection and commissioning of an industrial heater in a vacuum distillation unit (VDU).

While SML was the mechanical contractor, the Lump Sum Turnkey (LSTK) was awarded to Toyo Engineering. The EPC-Heater Package was awarded to Birwelco Ltd through Toyo Engineering. The Total Contract Quantum was approximately 1500 MT. Key components were convection coil welding, burner installation, and APH ducting.

The industrial heater is crucial for generating steam for the entire refinery, petrochemical, and fertilizer units. The project involved seamless collaboration between various stakeholders, including Toyo Engineering, Birwelco Ltd, and the external prefabrication agency.

Sanghvi Movers Limited provided a complete solution, including prefabri- cation, transportation, erection, and commissioning.

In collaboration with its client, SML adopted a Modular Construction approach, since the traditional method of on-site fabrication and erection was time-consuming, required significant manpower, and occupied large spaces.

The modular construction approach involved conducting prefabrication work off-site through an external agency; shifting the prefabricated modules using multi-axle trailers; and erecting, assembling, and welding the prefabricated modules on-site.

Through modular construction, we reduced the schedule from over 12 months to a significantly shorter period; decreased on-site manpower of over 150 workers; and minimized the need for large on-site spaces for fabrication.

The successful execution of the vacuum distillation unit (VDU) at IOCL, Vadodara, showcases the effectiveness of modular construction in large-scale industrial projects. Sanghvi Movers innovative approach not only streamlined the erection process but also delivered a high-quality solution within a reduced timeframe and optimized resources.

In conclusion, the future of infrastructure construction in India is bright, with numerous opportunities for growth and innovation. By adopting forward-thinking strategies and fostering collaboration, companies like Sanghvi Movers can overcome challenges and continue to lead the industry.
NBM&CW - July 2024

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