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 offer an entire range of Made in India machines in various capacities to cater to the road and mining sectors.
What will be the highlights of your product display at bauma Conexpo India 2023?
As always, the brands that we will be exhibiting at this year’s bauma India will be a true representation of all the innovations and variations of machinery and products that we at Terex MPS have to offer across the board. From cranes to compact crushing, hybrid range to modular crushers and sustainable sand washing solutions, the variety that will be on show is something that I am very proud of. We look forward to once again meeting all our partners and customers, including potential ones.
As per industry insights, construction equipment sales are set to increase in FY 2023-24 due to the numerous ongoing and upcoming big ticket infra projects. How is Terex gearing up to meet the forecasted demand?
Off-Highway Research forecasts that the market for construction equipment will follow an upward trend in the long term. The Government’s emphasis on infrastructure development remains strong with increased budget outlays. For instance, Rs 111 trillion NIP outlines the country’s infrastructure development strategy through 2025 with projects planned across all sectors.
The road sector is the most important driver of construction equipment demand, followed by urban infrastructure, railways, and irrigation. The recent cabinet approval of the first river linking project (Ken-Betwa) will boost equipment demand. Furthermore, two recent Government initiatives - the National Monetisation Pipeline (NMP) and Gati Shakti - will extend aid in project financing, integrated planning, coordination, and faster project execution.
Terex continues to strengthen its foothold in India’s Construction Equipment Market by bringing in new technologies, expanding its product portfolio, and entering new construction territories. With the recent launch of its technologically advanced and internationally proven Franna brand of pick-and-carry mobile cranes, Terex is now making its presence in the highly competitive mobile crane segment which is dominated by well-established local players.
We will also launch a smaller range of crushing machines such as jaw crushers and impact crushers under our EvoQuip brand, in the 60, 70, and 80-ton/hour capacity, which can be transported on a small truck or trailer. These machines are being developed to cater to projects in the North-East and the Himalayan regions, as well as for C&D crushing close to cities. Our aim is to offer an entire range of machines in various capacities from small, mid to high, which will be made in India to cater to road and mining sectors.
What efforts is Terex making towards creating a more sustainable and an eco-friendly environment by curbing wastage, recycling usable materials, and eliminating carbon emissions?
Terex is committed to sustainable infrastructure development and is striving to provide solutions that will reduce our overall carbon footprint. Terex had launched machines with fuel-efficient hybrid dual-powered technology earlier this year. We are already using Stage IV emission compliant engines and are prepared to take up any upcoming emission compliance requirements.
At our factory, we introduced carbon cutter emission control equipment with diesel generator and achieved 30% reduction in particulate matters from the emission. By optimizing the loading pattern and using trailers with side supports, we managed to replace about 38 trucks for each project with 20 trailers for shipment of field kit to customer sites. We introduced 200 units of LED light fittings in the shop floor to replace the metal halogen lamps, and in the process, reduced energy consumption per lamp from 400 watt to 200 watt, achieving 75 KWh reduction per month.
The coal sector is set to grow rapidly for the next few years, so while we already have a range of equipment which are being used in coal mines, we have also launched new models in hybrid and dual powered machines, which will further help reduce fuel consumption.
From an environmental perspective, there is a huge opportunity in recycling. Although we have been operating in the recycling business for the past four years, we formally launched Terex Recycling Systems this year. We are excited to be working with the Indian Government and various municipal corporations on waste management projects as we are confident that we can offer our expertise and know-how in recycling processes to make a real and lasting impact.
What services does Terex offer its customers?
Terex maintains an extensive product support operation, backed by experienced technical service and parts personnel. We understand the importance of fast turnaround and minimum downtime. We partner with our customers to enhance / optimise the performance of their equipment, including upstream and downstream equipment to maximise customer benefits.
We provide extensive services from parts supply to maintenance, and also specialized lifecycle services that span the entire product lifecycle. Along with our network partners, we are offering a full range of MRO Services, Predictive Maintenance, Repairs & Refurbishment, Health Audits, Remanufactured Sub-Assemblies, Performance Contracts, Availability Contracts, Process Audits, Telematics & Remote Data Acquisition, Remote Monitoring, and Project Study.
Our value additions and services to customers have remained consistent even during Covid-19. We have made significant investments to expand our aftermarket footprint across India. We are supplying original spare parts, timely service, continuous technical support, diagnosis, uptime, and maintaining the efficiency of the plants. In fact, our focus on direct selling of parts and our services has been getting us a lot of market share.
Our service experts are located throughout the country to be close to our customers to ensure that their needs are met, and their equipment have maximum uptime. Additionally, our spare parts warehouses are strategically located across the country so that parts are delivered quickly, even to remote sites, where most of the strategic infrastructure projects are located.
How does Terex address the shortage of skilled manpower, especially for its advanced machines that have automation and digitalization?
The major challenge in this industry is the lack of skilled and trained personnel to operate crushing and screening equipment. Terex India has been working closely with its customers to ensure availability of skilled manpower who are adept at operating more technological, intelligent equipment, in a safe and efficient manner.
A dedicated training centre at the Terex Hosur facility provides advanced training to crusher operators and plant supervisors from across the country. This is accredited as a training partner of the Infrastructure Equipment Skill Council (IESC) under the Skill India and NSDC program of the Government of India. We also conduct regular training programs at customer sites to train their operators on the best practices in crushing & screening and in equipment maintenance.
For India’s construction to be at par with world standards and to become the 2nd largest industry in the world by 2030, what are the grey areas that the CE fraternity and government should look at?
India has a robust Construction Equipment sector. The current $3 billion CE industry in India has the potential to grow manifold to become a $21 billion industry in the years to come. Despite the backdrop of the huge fiscal deficit of 6.8 % in FY22, Budget 2022’s emphasis on the National Gati Shakti Plan is a welcome move for the sector and is a landmark step towards enabling progressive economic growth in India. This will also give the much-needed boost to infrastructure development across India, while also driving economic growth. The mining space should see a positive impact with the Government’s plan to shift to a carbon-neutral economy.
While the potential exists, turning the forecast into reality is a different story given the issues that construction equipment manufacturers in India face. For example, there is a significant mismatch between the number of skilled operators required and the number available. Millions of construction workers are employed in India, and the number is growing, resulting in a disregard for safety and health concerns.
The Road Construction Industry must also stand up and transform the road building process through innovative engineering and equipment. More than 70% of contractors are still unwilling to adopt technology for faster project completion. Implementation of advanced technologies is also influenced by having regulations in place.
India’s construction equipment leasing/rental business is still a very fragmented industry, with rental penetration currently ranging between 7 to 8%, which is very low in comparison to global standards of 50 to 80%.