Tata Capital - One stop shop for Financial Offerings
"Tata Capital Limited,is a subsidiary of Tata Sons Limited, undertaking fund and fee based activities in the financial services sector. The Company caters to the needs of the retail and institutional customers via its wide range of offerings; truly a one- stop shop for finance and investment options. The Infrastructure Finance division of Tata Capital caters to the needs of the infrastructure sector. We have MoUs (Memorandum of Understanding) with over 35 leading construction equipment manufacturers which provides us with a unique advantage and allow us to leverage the same to provide attractive finance options to our customers," says Mr. Ranjit Manjarekar, Head Infrastructure Finance, Tata Capital, in an interview with S.A.Faridi.

With the planned investment of $1 trillion in the next 5 year plan 2012-17, how do you see the construction equipment market growing in the coming years?
As Dr. Manmohan Singh, the Prime Minister of India, recently stated “In the next 10 years, we must invest at least US$ 350 billion to modernize and expand India’s infrastructure" and the same sentiment is reflected in the 12th 5 - year plan. The 12th 5-Year Plan which envisages the investment in infrastructure to be between 8-10% of GDP, with the share of private investment rising from 36% (as forecast in the 11th plan) to 50% (as forecast in 12th plan). This private investment, to the tune of USD 275 billion, is a debt opportunity estimated to give a CAGR of 21% to the loan books of Banks & NBFCs.

Tata Capital - One stop shop for Financial Offerings

What is the market size of the equipment finance industry in India and how do you see it evolving in the next few years?
The Construction Equipment Finance industry has a market size close to Rs. 27,000 crore and is expected to grow at a rate a of 15-20% over the next 5 years.

Could you please brief us about Tata Capital Limited and its infrastructure and equipment financial services?
Tata Capital - One stop shop for Financial Offerings
Tata Capital Limited, a subsidiary of Tata Sons Limited, is registered as a Systematically Important Non Banking Finance Company, undertaking fund and fee based activities in the financial services sector. The Company caters to the needs of the retail and institutional customers via its wide range of offerings; truly a one- stop shop for finance and investment options.

The Infrastructure Finance division of Tata Capital caters to the needs of the infrastructure sector. Under the division, we finance a range of construction equipment from excavators, loaders, backhoes, wheel loaders and motor graders, to material handling equipment such as cranes , reach stackers and small and large crushers. Besides these, we also finance road construction equipment such as vibratory compactors, pavers, HMP, etc.

We also provide project funding for roadwork, irrigation, mining, airports, power, logistics, windmills, telecom towers and new crushing or RMC units. We also offer equipment on a monthly rental basis; wherein the equipment is owned, operated and maintained by Tata Capital, freeing our customers from the day-to-day operational worries.

As a large chunk of customers are small and medium size contractors and they are quite price conscious and value focused; what financing schemes are available for such customers?
We have MoUs (Memorandum of Understanding) with over 35 leading construction equipment manufacturers which provides us with a unique advantage and allow us to leverage the same to provide attractive finance options to our customers. Our wide experience and deep understanding of our customers also allows us to offer special schemes such as free insurance, payment of only the interest amount etc, during the seasons when machines are not optimally used (e.g. monsoons), to ease the impact on their finances.

What are the risks involved with equipment financing business?
  • As majority of the projects are short term in nature, dependent on the government’s spend on infrastructure,multiple clearances etc, this business faces the risk of irregular cash flows.
  • Non-registration of equipment by customers
  • Tendency toward improper maintenance or lack of AMCs with manufacturers, leading to ill use of equipment
  • Cross-state movements and difficulties in tracking equipments
  • No organised player to take care of old or repossessed equipments
Why NBFC is more preferred option for financing vis-à- vis bank?
Tata Capital - One stop shop for Financial Offerings
NBFCs are able to provide certain benefits to the customers – such as larger reach, value added services, extensive after sales support and structured and customized product offerings, which makes them popular with the customers. With RBI’s decision to launch Infrastructure NBFCs, these NBFCs will be able to compete on a better footing. We are optimistic about government support to the NBFCs operating in the infrastructure sector.

India has extremely complex tax system. What Government supports and policy implemen- tation are needed for the growth of equipment finance industry?
A key enabler for the growth of equipment finance industry in India would be its recognition as a priority sector. In addition to this, some of the areas that will bolster growth are transparency in project allotment, execution support, faster turnaround time and budgetary support for long term projects. Support on these fronts will enable the construction equipment finance industry to form a significant part of the Infrastructure arena.
EXCON 2023: Showcasing Construction Industry’s Resilience and Vibrancy
I am sure that a lot of excitement and enthusiasm is building up for the coming week when EXCON 2023, one of the largest construction equipment and technology trade fairs in the world, will open its door to welcome all the

Read more ...

Shri Gadkari discusses on road construction policies, technologies, challenges
In a prelude to EXCON 2023, Hon’ble Minister Shri Nitin Gadkari, Ministry of Road Transport & Highways, Government of India, discusses with S. A. Faridi,Group Managing Editor, various aspects of road construction including policies

Read more ...

ICEMA: equipment industry growth prospect, challenges, training etc
V. Vivekanand, President - ICEMA and Managing Director - Caterpillar India, shares his views on the growth prospects of India’s construction equipment industry and the need for it to embrace higher technology standards to solidify its position

Read more ...

BAI working on construction technologies, sustainability, standardization
According to S. Narsimha Reddy, President, Builders’ Association of India, modern construction technologies, use of sustainable building materials and standardisation are important for achieving project completion timelines

Read more ...

COAOI creating favorable environment for crane rental companies
COAOI engages with the government and relevant stakeholders to promote a more conducive business environment so that crane rental companies can operate efficiently and contribute to the nation’s infrastructure development while maintaining safety

Read more ...

CERA: rental co. instrumental in construction equipment industry growth
Rentals are paving the way forward for the construction equipment industry, and to ensure long-term resilience and growth, we are championing initiatives like unity, standardization, and commitment to fair practices

Read more ...

JCB India: Hi-tech Excavators, Telehandlers, Backhoe Loaders & AWP
JCB is a leading construction equipment manufacturer with a comprehensive range of products that include mini excavators, skid steer loaders, telehandlers backhoe loaders, access platforms, compactors, excavators

Read more ...

Volvo CE: Time-Tested Excavators, Compactors & Asphalt Pavers
Volvo CE started its India operations in 1998 to manufacture crawler excavators, soil compactors, and asphalt pavers. In 2022, it introduced time-tested quality machines like the EC300DL BH, custom-built for quarries, and Volvo EC480D

Read more ...

Wirtgen: Advanced Road Construction, Crushing & Screeing Equipment
With its various product brands WIRTGEN, VÖGELE, HAMM, KLEEMANN and BENNINGHOVEN, the WIRTGEN GROUP covers the entire road construction process chain from processing, mixing, paving, compacting, and road rehabilitation to

Read more ...

Schwing Stetter: Top Quality Concrete & Road Construction Equipment
Schwing Stetter India is a leading provider of a wide range of top-quality products for use in concreting, road building, earthmoving, power projects, high-speed rails, metro rails, and other mega projects. The company invests in developing

Read more ...

Puzzolana: High-Capacity & Hybrid Crawler Crushers, Screens & sanders
Puzzolana is adopting the latest technologies and bringing sustainability in its construction equipment. The company has optimized its production processes by incorporating robotics in painting and assembly, with the aim of achieving

Read more ...

Tata Hitachi: Hydraulic Excavators, Backhoe Loaders & Wheel Loaders
The product lineup of Tata Hitachi India includes a wide range of excavators, ranging from 2-ton mini excavators (including construction and mining variants) to models as hefty as 800 tons, which incorporate the excavator range

Read more ...

ACE High performance Mobile, Truck, Tower Cranes & Backhoe loaders
ACE is gearing up for Excon 23 to showcase its latest innovations, engage with industry leaders, and reinforce its position as a trailblazer in the field. Renowned for its Mobile and Tower Cranes, the company prioritizes sustainability

Read more ...

L&T's fuel efficient Excavators, Compactors, Wheel Loaders
Komatsu and L&T Construction & Mining Machinery are delivering top-notch products using the latest technologies and based on an understanding of customer needs. Its advanced models include electric Hydraulic Excavators and

Read more ...

Ammann's High Recycling Tech Asphalt Plant, Tandem Roller & Paver
Ammann India is a 100% subsidiary of construction equipment major Ammann Switzerland - a 150-year-old company and a world-leading supplier of mixing plants, machines and services to the construction industry with core expertise in road

Read more ...

SANY offers Machinery for Earthmoving, Lifting, Mining, Concrete & Road
SANY India, a leading heavy construction equipment company operating in India and South Asia, offers a wide range of machinery for various applications such as Earthmoving, Lifting, Foundation, Mining, Ports, Concrete

Read more ...

Kobelco: Offers Tech-rich & Environment- Friendly Excavators & Cranes
Kobelco Construction Equipment, a subsidiary of Kobelco Construction Machinery, Japan, offers earthmovers and cranes that are tech-rich, environment-friendly, and customized for different jobsite conditions. The products are being made

Read more ...

Caterpillar India: Versatile Excavators, Backhoe, & Wheel Loaders
Caterpillar is a technology leader in the industry with 100+ years in product innovation and development. The company’s technology strategy is determined by its assessment of how and where its machines will be working over the

Read more ...

Liebherr India: Offers High-Capacity Premium Mobile & tower Cranes
German crane manufacturing behemoth Liebherr is continuing to position its cranes as ‘high premium’ in the rapidly evolving Indian mobile and crawler crane market. The company has a strong footprint in heavy lift, industrial and

Read more ...

Terex India: Advanced Crushing & Screening and Pick N Carry Cranes
Terex entered the Indian market in 2000 with a primary focus on serving the mining industry. The initial emphasis was on crushing and screening products, where we garnered a significant market share, particularly in track-mounted

Read more ...