TEPL Focuses on Strengthening Distribution Network, Vendor Base and Products' Support
What is the progress on Terex JV with the Russian CE company? Having supplied BLs to it, what has been the Russian CE market response to this offering? Under JV arrangement what other Terex equipment are proposed to be offered?
Our progress with Terex Joint Venture with Russian CE Company is going quite well. In 2013 we will be closing with supplies of approx. 200 kits.
Entry of many big brands in the backhoe business in the last 2-3 years coupled with negative growth has put a question mark on market potential. Where do you see the market in the next two three years? How confident Terex is of maintaining its second position in BL market as its market recovers?
Overall market has declined by around 14% till date.Most likely industry shall end up the year with 15%-17% decline in sales YOY. New brands in Backhoe Loader market have taken around 8% market share out of backhoe loader industry. We expect the market will be flat up to Q4 2014 and thereafter we expect growth of around 10-15% year on year for next 3 years. We are confident to retain our market share and expect growth in market share of around 2% in the coming years.
During the present lean spell, how is the company concentrating on expanding and strengthening its spare part outlets, service centers, dealership network and firming up its vendor base?
During the current lean time TEPL is focusing on strengthening distribution network trainings and product support. We have currently 160 dealer outlets which we are planning to increase to 200 plus by 2014. All these outlets shall be equipped with sales service and parts backup. We are also improving our vendor base to cater to both domestic and export market.
A word about your specially created Cell exclusively dealing with AMCs and OMCs to take care of client troubleshooting problems.
We are imparting training to all our dealers manpower to minimize the down time and maximize the AMCs. For better preventive maintenance of our equipment we have 24x7 helpline to support the customers.
Please highlight your financing and leasing schemes to assist buyers to acquire Terex equipment. Has the scheme helped adding to company sales? Also how is the company's rental business progressing?
How do you see Rupee devaluation against major currencies affecting CE industry?
Rupee devaluation has affected the entire CE industry. It has had marginal impact on our Backhoe since the import content is very less. However it is highly impacting the CE manufacturers who are either importing equipment directly or importing major kits.
All clouds have silver linings and so has the fall of rupee. Don't you think that depreciation of rupee could initiate big measures to reduce dependence on import by way of enhancing localization, optimizing of designs, developing strong vendor base and increasing exports. Of all these, where would Terex put its sharp focus?
We are putting lot of focus for developing our vendor base to localize our equipment like Light Towers, Walk behind rollers Site Dumpers & Skid Steer Loaders. Also we have increased our focus on Export sales.
From time-to-time, the government has been tweaking its programmes to fast track infrastructure projects. Why these programmes have failed to lift the present gloom? Past cannot be changed but certainly the future can be moulded to instill a new confidence in infrastructure business and particularly halting the investment draught. Though overseas players/investors are prepared to invest, why the domestic players are reluctant to invest in new projects? Your take on this, please.
The progress on infrastructure projects is going at slow pace due to slow decision making by Government Departments for awarding new contracts, land acquisition, environment and forest clearance. Also slow flow of funds to the Corporates/Contractors have hampered the progress in execution of both ongoing and upcoming projects. We are hopeful that with the Government focusing now for speedy clearance of ongoing projects, next few months could be better with adequate flow of funds for the projects being released. Domestic players are not very keen to invest in new projects due to prolonged delay for project clearance and other hurdles like poor availability of raw material and project funding.
NBM&CW November 2013
