Terex: "India is a Significant Market"

Mr. Ron DeFeo, Chairman & CEO, Terex Corporation, USA was in New Delhi recently to share Terex's India plans and Business strategy. Explaining Terex plans, he said, India's steady progress in improving the lives of its citizens through ongoing investments in critical infrastructure is indeed impressive. We are continuing to expand the Terex presence in India through significant investment in our facilities and building our organizational capacity to play an increasing role in supplying quality construction equipment to help build a truly modern and globally competitive construction equipment market in India. The US-based company expects to invest around $20-30 million in India, as it looks to increase its manufacturing presence here. In the next five years, the company wants to triple its domestic revenues, expand and strengthen its marketing programme. On the cards, there are plans to double the capacity of its Noida plant by 2015, while increasing capacity at the Hosur facility by around 50% through the next year. If the demand goes upwards, an extension of the existing Hosur facility is not ruled out, he added.


Presenting an overview of Terex Corporation, he said Terex Corporation is a diversified global manufacturer operating in four business segments—Terex Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex Material Processing. The Corporation manufactures a broad range of equipment for use in various industries, including construction, infrastructure, quarrying, mining, shipping, transportation, energy, refining and utilities. It offers in professional financing facilities through Terex financial Services and services to assist in the acquisition of Terex equipment.

Terex in India manufactures – Backhoe Loaders & Skid Steer Loaders in its Noida facility and Crushing & Screening Equipment at its state-of-the–art Hosur facility. The Hosur facility will soon start manufacturing Tower cranes. Apart from the indigenously built equipment, there is a full range of Cranes – Tower, Crawler, Mobile and an interesting range of Aerial Work Platforms that Terex markets in India. For sales, service and part support for its products, the company has a motivated nationwide dealers network. These dealers are supported by a team of Terex experts to ensure consistent service delivery across the country.

Speaking on the occasion, Mr. Jehangir Ardeshir, President & Managing Director, ‘Terex India said that India is a significant market for Terex and we would continue to work even more closely with all our customers & partners to increase our footprint. Manufacturing facilities at Noida and Hosur are set to be augmented and the company will invest in developing new products and services. It is possible for Terex to triple overall revenue from Indian operations in the next five years' he added.

On the sidelines of this presentation, Mr. Ron DeFeo interacted with S.K.Khanna to share his views on some of the important matters globally as well as locally concerning construction equipment market, Excerpts:

Global Construction Equipment Market
Markets in the US and European regions have not recovered the way the Asian markets have emerged and grown. The global economies and markets are dependent on the growth in emerging markets like that of Asia, which are growing very fast due to their potential growth rate and right policies. Talking about the US market, he said there is a need to increase focus on rebuilding some elements of the country's infrastructure. The case with European region is the lesson to be learnt - investment in infrastructure is an ongoing programme and have many spin off benefits like generation of employment, creation of new business opportunities adding to the growth of economy, says Ron who is an ardent advocate of long-term infrastructure planning and investments therein.

Market Differentiation
Differentiation, says Ron is a key to effective marketing. Whether one deals with glamorous products like hair and skin care products or equipment products, the fundamentals of marketing are the same—being responsive to customers' needs as different from others. Ron began his career in brand management of a well-known international firm marketing hair and skin care products. He then joined Terex as President of the company's then Heavy Equipment Group in 1992 became Chief executive officer in 1995 and Chairman of the Board 1998 and applied his rich experience in Terex Equipment with subtle differentiation in customer centric approach. This differentiation has been key to our market strategy at Terex, he felt. By adhering to this policy, we have been able to bring our best practices in selling and manufacturing in the market place and converting the same for customer solutions as different from others. Today when in the market, there are several products of similar technical attributes and performance, the need is to engage the prospective buyer with the product's intrinsic properties so that the customers understand the differentiation and are ready to acquire or reacquire the products and services being offered.

India Market
With high growth potential, India is an exciting market to work on. Indian market is different from others-large, heterogeneous, and diversified requiring different solutions vis-à-vis other markets. It is both as a challenge as well as an opportunity. Terex can successfully navigate these challenges and avail the opportunities in them. For India, we are strongly committed to bring in the latest technologies, products and best business practices from around the world to serve the local market conditions.

Reforms in Infrastructure
Reforms as being initiated in India in infrastructure sector must continue. It should be an important ongoing process. Talking on the subject, Jehangir Ardeshir pointed out certain grey areas needed to be addressed such as rationalization of taxes and import regime, uniformity of rules and regulations in different states and quick sorting out of land acquisition problems etc.

Terex Message
Through NBM&CW, our message to our existing and prospective clients is: All our products and services reflect our focus and dedication to our customers. From its strong network of dealers to our local parts delivery system, Terex would deliver its global support on a local level keeping in view customers prime requirement to maximize their return on equipment investment. Terex's goal is to be the most responsive company in the industry as determined by our customer's success.