Terex - A Specialized Construction Equipment Company
"Terex is a specialized construction equipment company. We are in niche businesses, and have invested resources to ensure that we are the leaders in these businesses. In Aerial Work Platforms, our brand Genie is Number One globally; in cranes, we are in the top three, globally. In Materials Processing, we are the market leader not only in India but also globally. With the acquisition of Demag, which is amongst the top three in overhead cranes and ship-to-shore harbour crane products, and coupled with our port equipment, we will be a strong player in the port equipment business," says Mr. Jehangir Ardeshir, President & Managing Director, Terex India, in an interview with S.K.Khanna.

What is the current status of Terex's grandplan to invest over $30 million in Indiato increase its presence? Apart from strengthening its presence in India; what else has promptedTerex to make this significant move?
Terex has made significant investments in India where we have enhanced our stake in our Greater Noida facility which was a 50:50 JV to start with and has now become 99% Terex owned; our manufacturing facility at Hosur established in 2008/2009 was our next big investment with over USD 25m invested for manufacturing crushers and screens and tower sections for the Indian market. In Bangalore, we have developed a team of nearly 180 engineers and our Terex India Research and Development Center now serves not only our global businesses for which it was initially set up, but increasingly the Indian market also. We have recently inaugurated our Bangalore Corporate Office and have satellite offices in major cities across India. And the global acquisition of Demag AG by Terex brings two new brands and 16 new manufacturing facilities into the Terex fold globally, including one in India, which is a very well run business.

Terex - A Specialized Construction Equipment Company

The next set of investments will be made to focus more on extracting synergies across businesses, bringing in new productlines through ground up design or localization of existing products, and on adding facilities for customer service, employee learning and operator training. Capability building is going to be a key focus, so you will see investments in human resources and supporting facilities, though obviously, these are not so capital intensive. We see huge growth potential in our cranes, port equipment, construction and materials processing segments and the potential to develop a market in our aerial work platforms and others, and thus will be increasing our capabilities (and team strength) as we grow. World class engineering and "Best Cost Country" sourcing will further support these initiatives. Our new product lines will include wheel-mounted crushing and screening equipment, site dumpers, wheel loaders and light towers, and we are still exploring options in other product lines. Where we are already present, we will focus also on improving our market reach and our dealer network and their capabilities in addition to our engineering and manufacturing.

About 35% of Terex Corporation's revenues come from the developing markets and the largest growth in the last couple of years has been from the BRIC countries. India will increasingly become a manufacturing base for Terex, initially for Indian markets, and once we proved our capabilities here, for global markets also. Indeed, we have already started exporting material processing equipment, tower crane sections and construction equipment not only to neighbouring countries but also to South East Asia and Africa. Russia is also awaiting some products from Terex's India manufacturing base, and even our competitors are looking at our manufacturing capabilities in non compete areas!

How do you look at the emerging stiff market competition and what would be Terex marketfocus to meet the competition?
Terex has the widest products range of any equipment company on the planet in this broad space, though it is not easy to compare companies like for like. Our products range from the general category to highly specialized purpose built machines. Along with our engineering capabilities in India which gives us the ability to choose appropriate lines and tailor make them to meet the needs of markets we choose to serve. Being in niche businesses, many of our lines are leaders. For example, in Aerial Work Platforms, our brand Genie is either the leader or a close second depending on the market you look at; in Cranes, we are amongst the top three as well. In Materials Processing, we are the market leader in track mounted crushers and screens globally (and also in India), and we have just entered into the wheel plant market where we are confident of gaining share. With Demag becoming part of the Terex group, the group is now a leader in a brand new segment (EOT cranes and related equipment). Terex has also become a force to reckon with in Port equipment: you will be happy to hear that we have successfully re-entered the Port equipment market globally as well as in India post the Terex acquisition of Fantuzzi, and now that Gottwald port equipment (a part of Demag) has also joined the Terex fold, we have a full range port equipment capability which is a force to reckon with.

Terex - A Specialized Construction Equipment Company

Terex started operations in India as a construction equipment manufacturer, and has since progressively expanded such that now all Terex segments are represented in India with an increasing number of product lines from each segment meeting Indian market needs.

Critical success factors for us going forward will be customer service and solutioning (including timely support with parts and spares), distribution and reach, financing support for customers and suppliers, and engineering & sourcing activity to get us the best cost structures for competitive pricing in what is arguably the most price conscious and yet demanding market. The Terex Financial Services program in India has recently signed up Tata Capital in addition to our existing relationship with HDFC and there are others in the pipeline. We will achieve this without sacrificing Terex's premium quality, and the customer will certainly see value in this combination. Choosing which battles to fight will therefore be the key, as we cannot spread ourselves too thin, and yet we must avail all our available opportunities.

In the beginning of 2011, there was a clear indication of good demand for CE and the CE sector was very optimistic to clock over 20% growth, but now concerns are there about the second spell of recession emerging in. In the light of above; how do you see CE growth / market in the next two years as the first spell of recessionhas not hit the country as bad?
Terex - A Specialized Construction Equipment Company
Your concerns are uppermost in our minds too; India is such a country that realize the fantastic growth story if its projected outlays are executed, even if they do not take place as aggressively as initially envisioned (which, frankly, is the likely scenario). A "slowdown" story for India would be 9% growth now reducing to 7% or 6%. As reflected in infrastructure and CE, this would be a great concern for companies that have over-invested in capacity. We are reasonably confident that Terex has planned capacities well in India and will grow into the market and win share over time. With over 50% growth in 2011, and over 100% growth last year, we have every reason to feel secure for the present, considering that our businesses are looking increasingly profitable. We can also foresee our ability to take share increase with time, as we bring more of our products and capabilities to bear in India and related markets. India's proposed project outlay for 2008 – 2018 is close to USD 1.3 bn with major focus on urban and rural infrastructure and roads and highways. Though not all these projects have taken off as planned, we would continue to grow, albeit slower than before. The concerned areas we will have to focus on are related to land acquisition issues, as these will slowdown the market for new infrastructure; at the same time, we should remember that India now has a sizeable redevelopment market also. The larger equipment industry has seen fluctuating growth in the last few quarters and we foresee that this will continue for the next few months; so we will keep watching the market.

Do you think that the entry of reputed CE auctioning companies making inroads is a threat or an opportunity to the CE manufacturers?
Rental and Remarketing are the new routes that are making inroads into our industry. Most of the manufacturers have their own rental/reman business models via which they support their customers or dealers. Terex has similar ongoing initiatives in North America but we have not yet explored those opportunities in India. We have started looking at them more seriously now. CE auctioning companies have opened doors across continents for import and export of used equipment. India is a price conscious nation but buyers are increasing unwilling to take on machines which have already been excessively used and have delivered most of their lives, so the market dynamic is evolving. The CE manufacturers along with the government will have to ensure that the machines allowed for import into the country are screened for good condition (i.e. they should be relatively new!), so that they will help build infrastructure cost-effectively and productively. The rental/reman model actually helps companies with buy back mechanisms for certain customers who can then move on to buy new equipment, thereby stimulating two different categories of buyers and growing the market. However, the business models used by the CE auctioning companies need to be well-scrutinized to ensure that the right quality of equipment comes into India. As manufacturers and importers in different product lines, we see value in both approaches.
Moteurs Baudouin
We are fully geared up with the technological advancements required to meet the CPCB IV+norms with our flexible and dependable power solutions. Gurunath Kulkarni. For over 100 years, Baudouin has been designing the highest quality diesel and gas engines for

Read more ...

Builders Association of India: Bridging the Gaps
Nimesh Patel, President, BAI & Managing Director, Maruti Infrastructure Limited, discusses the challenges and issues faced by the construction and real estate industries of India; why BAI is propagating a Unified Standard Contract Document, and how the

Read more ...

Volvo CE India: Designing Machines to Give Power & Precision
Volvo machines are 10-15% more fuel efficient, they comply with CEV IV emission norms, and can run on alternative eco-friendly fuels such as biodiesel. We lay strong emphasis on operator training for efficient use of every machine that we sell, avers Dimitrov

Read more ...

Tata Hitachi India: Developing Indigenous High-Tech Machines
To serve the Indian infra development sector more industriously, we will continue to undertake extensive R&D and introduce machines with high-tech features, cost-effective solutions, high performance, and fuel efficiency, avers Sandeep Singh, Managing

Read more ...

L&T: Industry Leading Initiatives & Achievements
Arvind K Garg, Senior Vice President and Head, L&T Construction & Mining Machinery, enumerates the technologies and products introduced by Komatsu and L&T, the company’s extensive customer service programs, and proactive skill development initiatives which

Read more ...

ACE: Electrifying the Industry
Sorab Agarwal, Executive Director, informs that the company is set to become India’s first ‘swadeshi’ manufacturer of electric construction equipment with the launch of a fully electric mobile crane, whose technology has been developed indigenously at their

Read more ...

Terex: Strengthening Foothold Across India
Jaideep Shekhar, Managing Director, Asia & EMEAR, informs that the company will continue to strengthen its foothold in the Indian market by bringing in new technologies, expanding its product portfolio, and entering new construction territories. Its aim is to

Read more ...

Schwing Stetter India: Formulating Plans to Adapt to Demand Trends
V.G.Sakthikumar, Managing Director, informs that since sustainability is an integral part of the company, they are pursuing collaborations and R&D to bring innovative solutions, increase usage of green energy in its facilities, and reduce carbon

Read more ...

Escorts Kubota: Prioritizing Customer Benefits
Sanjeev Bajaj, Chief Executive, Escorts Kubota Limited, is confident that 2023-24 will be a great year for the CE business and demand may be more than the current capacity, largely led by domestic consumption due to the infra push by the Government before the

Read more ...

Puzzolana Group: Increasing Operational Efficiencies
Abhijeet Pai, President, informs that the company’s wide ranging value-added services for its customers has positioned it as a total solution provider in the Crushing & Screening Industry. The focus at bauma this year will be on M-sand, aggregates, railway

Read more ...

Sany India: In Sync With Changing Trends
Dheeraj Panda, Chief Operating Officer - Sales, Marketing & Customer Support, Sany India, informs that the company has taken a significant step forward towards sustainability with its B-V biodiesel machines, and is also testing electric technologies for

Read more ...

CRCHI: Making Tunnel Construction Smarter & Safer
CRCHI is positioned in world markets as a large enterprise with a strong focus on research, design, and manufacturing of customized underground engineering and rail transit equipment, informs Song Shuang, Vice Managing Director, Overseas

Read more ...

Manitou South Asia: Widening Industrial Footprint in India
Hafeez Khan, Managing Director, informs that the company is well-equipped to meet the higher anticipated demand in FY23-24 with its versatile material handling solutions, value-based services, and strategic partnerships with rental companies. Bauma is the perfect

Read more ...

KYB Conmat India: Focus on India-Centric Equipment
Premraj Kashyap, MD, informs that the company is fully geared up to meet upcoming demand in FY23-24 and has added a lot of innovative products to their Concrete Equipment portfolio, including a new range of Self-Loading Concrete Mixers. The government intends

Read more ...

JCB India: Committed to India’s Growth Story
Sales of construction equipment, a barometer of economic activity, is expected to increase in double digits in the ongoing financial year on the back of increased government spending on infrastructure projects, especially in rural areas, observes Deepak

Read more ...

Wirtgen India: Enabling Sustainable Construction
The Wirtgen Group and John Deere are working on various smart technologies, including electric machines, and on sustainable construction through its recycling business, informs Ramesh Palagiri, Managing Director & CEO. Wirtgen’s production systems are

Read more ...

Ammann India: Forging Ahead
Anand Sundaresan, Managing Director, discusses the grey areas in the construction equipment industry of India and how the company’s technologically advanced systems and processes can help meet many of the challenges; and factors that are differentiating

Read more ...

CDE Asia: Sourcing Sand Ethically for the Construction Industry
With the advanced recycling solutions now available, it is possible to achieve a self-reliant, circular economy where different waste streams can be recycled and converted into high-quality sand and aggregates for use in construction, informs Manish

Read more ...

Etrack: Offering the most Advanced & Green mobile Crusher & Scalpers in India
Keestrack is introducing the most advanced and innovative technology for crushers and scalpers through its manufacturing facility in Neemrana, Rajasthan. Swaminathan Dhandapani, CEO, discusses the company’s strategies to drive business in India

Read more ...

LiuGong India: Committed to Make in India
Nischal Mehrotra, Vice President - Sales & Marketing, informs that the company has expanded its product offerings with large tonnage excavators, mini excavators, dozers, electric wheel loaders and trucks, and is geared up to meet the anticipated higher

Read more ...

×
Sign-up for Free Subscription
'India Construction Week'
Weekly e-Newsletter on Construction Industry
Get the latest news, product launches, projects announced / awarded, government policies, investments, and expert views.
Click here to subscribe.