Delhi based PVS-Impex, is better known as a consulting house, for promoting capital equipment from foreign companies in India. However, in recent years, PVS has been able to make its mark by selling array of construction equipment products, in road sector through its consultancy tie–up with Chinese construction equipment manufacturing major, Zhenjiang Huachen Huatong Road Machinery Co. Ltd (Huatong). In addition, PVS also entered into a consultancy agreement with Chinese construction equipment manufacturers, Sinovo and HBXG, for promoting their foundation and earthmoving equipment. In a free wheeling discussion with P.P. Basistha, Mr. S.K. Bhan, Managing Director and Mr. Rakesh Raina, General Manager Marketing, PVS Impex— spelt out details behind its series of successful marketing collaborations with Chinese manufacturers.
The primary business focus for PVS-Impex has been to play the role of marketing consultants for products of foreign companies in India, specializing in importing steel and power equipment. Playing the role of consultants has involved, identifying the potential markets, defining the sales strategy and providing sales execution assistance. In steel, we have been providing marketing consultancy to a Japanese steel major for selling their products to railway construction projects, railway transport system manufacturers and for the unique requirements of hydel power projects.
While in power sector, we have been associated with a major Chinese power equipment manufacturer. We have assisted in supplying the boilers, turbines and generator packages to power project promoters.
Having significant exposure in core industries of steel and power over a considerable period, has in turn enabled us to have a good flair of the country’s construction market and its requirement of equipment as well. This has allowed us to go for successful marketing tie-ups with a range of construction equipment manufacturers.
For construction machinery, we offer our consultancy to three Chinese manufacturers, namely Huatong, Beijing Sinovo, and HBXG. Our tie-up with Huatong has been for five years. We are promoting Huatong's hot mix plants and asphalt pavers. The products have found their application in many of the country’s road projects under NHAI. The most important among them comprising; Delhi-Kolkata, NH-2 road and Delhi-Panipat National Highway.
Recently, we entered into a consultancy tie-up with Sinovo for its drilling rigs and with HBXG for dozers.
Collaboration with Sinovo & HBXG
The drilling rigs market is getting fast matured with construction companies understanding the utility of the equipment, while there are only a handful of European manufacturers to serve the market. This collaboration will enable us to gain access to this market and exploit its potential.
We are exploring the Metro railway construction projects in Delhi and Bangalore. Additionally we are looking for upcoming metro projects at Chennai and Mumbai. Besides, demand of drilling rigs in real estate and other core construction projects is also being surveyed as potential demand areas.
Sinovo equipments would be having its edge in terms of price competitiveness while offering a quality on par with European products since their undercarriage and engine are imported from CAT. Sinovo rigs would be low on initial as well as maintenance costs.
The same would be for HBXG Dozers. The equipment would be price competitive while maintaining the quality edge due to their technology tie-ups with CAT and Komatsu. Earthmoving equipment form an integral part of any construction activity in India and there is a good demand potential with continuous growth in construction activities.
Our success behind the marketing tie-ups with the Chinese manufacturers has been based on both our able assistance to promote the products of the parents along with our ability to provide efficient customer support. A marketing consultancy can only be successful when the distribution partner is able to provide prompt service in terms of fast back up maintenance support along with component support. Our assistance to the parent has been wholesome in this regard via customer service.
We have been providing turnkey assistance to the customers in setting up the asphalts plant and also commissioning the same. For efficient service support, PVS has been regularly sending its engineers for training in China. The same services benchmarks would be for the foundation equipment and the dozers as well.
We are increasingly looking at the possibility of product localization to sustain their price competitive positioning. For localization, we are looking at the possibility of having a potential vendor base for spare parts. Localization is important as Chinese RMB has been showing signs of appreciation over the years.
As of now, we have been maintaining a stock of fast moving spares in the country like engine filters, hydraulic filters, augur blades, screed plates etc. Initially, we would be looking for sourcing these products at home. All to consolidate our position as a price competitive construction equipment solution provider.