TIL on Diversification Drive

TIL on Diversification Drive
TIL on its current diversification and expansion drive is quite upbeat about its future business prospects. In near future, TIL would be able to manufacture cranes worth Rs.1000 crore, backed by its effective marketing and sales support services. In addition, we shall be rolling out Crushers and Asphalt plants from our new manufacturing facilities said Mr. Satish K Bhatnagar, Director and President, Material Handling Solutions, TIL in an interview with S.A Faridi.

How do you view the construction equipment market prospects in the 2011-12 fiscal?
Before discussing the construction equipment market prospects of the next fiscal, let us take a view of the past financial year. In view of the huge infrastructure spending and the buoyancy of the market, we thought that the Indian market will grow at 20–30%. But as the year progressed we found that the growth did not happen largely due to policy distortions and as a result -in some sectors the growth was on expected lines and in others it remained stagnant.

TIL on Diversification Drive

Now again we expect that the market will grow somewhere nearly 20–30% and once infrastructure development speed takes pace and accelerate it would remain on the growth path for the next 8 to 10 years. As the equipment manufacturers, we are gearing up to take care of the long term future growth potentials, but the grey areas are still there.

How do you look at the competition in the construction sector and what differentiates TIL from its competitors?
We have a large number of product portfolios and competition varies from product to product. For example, our mobile cranes, which we manufacture in the range from10 to 75 tons categories and also higher capacities, we expect that the presence of foreign companies will be limited. Even Chinese companies are gearing up to face the challenge as they will have to face the resistance from Indian companies, which are increasingly meeting the quality requirements and are also trying to offer products in the range of the prices of Chinese equipment.

TIL on Diversification Drive

European and other manufacturers make very expensive product. In view of this, we do not see such a competition coming in. Cranes above 75 tons range are not manufactured in India and in the range of 70 to 600 tons categories; there will be a stiff competition among various global players as they are currently eyeing India for this particular segment. In view of this we will see that the Europeans, Americans, Chinese and Japanese would fight for their share in the Indian equipment market. For TIL, as you know our partner Manitowoc crane group is the largest group in the world with manufacturing facilities in the US, Europe and China and we also have Truck mounted, lattice Boom Crawler as well as the Tower cranes, as such, we are comfortably placed in the emerging equipment market scenario. In addition, we also enjoy the advantage of having our sales, spare parts and service network across 60 locations in India, which no company has been able to maintain so far and it will take time for them to build a network of this magnitude. That apart, currently over 5000 cranes are working at various locations in India and the infrastructure we have already created in the past 40 years.

What prompts TIL to diversify itself from a mobile crane manufacturing company to a one stop solutions provider for infrastructure equipment and services?
In addition to our Caterpillar dealership of Construction, Mining and Power systems solutions, we have been a mobile crane making company for a long time. As the Indian market opens up and the government chalks out plans to build various type of infrastructure, we also see an opportunity to make available wider range of products which are also a part of our core competency – which prompted us to select certain products which are complementary to our range. In the process, we have plans for diversification in the port sector which requires cranes for handling containers. As a matter of fact, most of the ports in India are using our cranes. With the ongoing modernization in the port infrastructure, ports need specialized cranes for handling containers. As far as specialized cranes are concerned we are the only crane manufacturer in the country, meeting such types of requirements and as such, have diversified for specialized cranes.

Alongside, we are also diversifying in other areas, bringing in road building equipment comprising crushing & screening solutions, Hot Mix Asphalt plant and other equipment.

TIL on Diversification Drive

Moreover, if you add these road building range with that of our portfolio of construction, earthmoving equipment under our Caterpillar dealership along with TIL’s superior product support and innovative service solutions, we undoubtedly come across as the "one stop shop" from where we are able to offer all solutions to the construction and road building industry. In fact, taking advantages of the growth potentials and emerging opportunities, we are selecting our product range in such a way that it should be in line with what we are already offering.

Is there any competition within your products offering as you are providing multiple international Brands?
Far from it, our range of products are infact complementary. We respect and cherish our relationship with the global associates and would never do anything that competes with our partners because after all we have very longstanding relationship that spans decades.

Are you planning any acquisition in the near future?
As of now we have no acquisition plan as currently we are investing heavily in our green field manufacturing facilities for which we have already acquired 200 acres land. Construction of plant is already in full swing over 40 acre of land and our current focus is to push our green field capacity, which in turn will take care of our new products as well as the existing ones.

You have tie-up with Astec of US to manufacture its Hot mix Asphalt Plant and Telsmith crushers. What are the main features of the new product line?
We have been the significant player in the infrastructure sector and in view of the growth story of Indian infrastructure, largely related to road construction as specifically the focus of Indian government is towards roads, we have started looking at the core equipment for the road construction sector. We are looking at the crushers both for aggregate and mining applications and also at the hot mix asphalt plant. We have also started manufacturing these two products in India under the brand of Astec, a US based company.

In association with Telsmith and KPI-JCI, a part of the Astec aggregate and mining group, TIL brings to India the best of crushing solution which are engineered to perform and built to last. The product range includes the large Primary Jaw Crushers, Cone Crushers, the Vertical Shaft Impactor, and the Horizontal Shaft Impactors, Track Mounted plants, and Portable plants.

TIL on Diversification Drive

Hot mix asphalt plant is the new technology we are bringing in. In view of the big infrastructure projects and targets government is talking about, we need to have larger plants with larger capacities. Astec has double barrel technology wherein drying is taking place in the inside chamber at the same time mixing takes place in the outer chamber and the advantage of this is that single barrel is doing both the functions which is being done in both the processes, otherwise it is normally done in two different processes. The other advantage is fuel efficiency as you are not loosing anything as heat being generated in the inner chamber is used in the outer barrel and this is really a unique process.

What is your total investment plan for the next 3-4 years in Crane manufacturing facility?
In the next three to four years, we are investing about Rs. 50 crore in the existing plant but in the new plant investment would be Rs.175 crore and it will be operational by 2012.

What is the current status of TIL upcoming new facility at Kharagpur?
We are setting up a Greenfield manufacturing facility at Kharagpur in Calcutta where construction is in full swing for the last three to four months and products from this new facility would be rolled out by 2011. The plant will manufacture crushers, cranes, and asphalt plants.

TIL on Diversification Drive

In addition to these, our crane making facility in Calcutta is working for quite some time and has the capacity to manufacture 250 units per annum in the 30 to 75 metric tons capacity range. However, it would be expanded after studying market situation beyond 250 units in the next two to three years for which we have already purchased a land for starting a new mobile crane facility. As of now, the plans are to begin construction in 2011 and it would be operational in 2012. With these two new facilities, we would be able to take care of any future demands and requirements of equipment.

How many machines are you planning to produce from this new plant?
I cannot give the exact figure in number of units but one thing is clear that it would be in a position to manufacture products worth Rs.1000 crore in terms of sales in four years time. The current crane manufacturing capacity of the Calcutta facility is 250 cranes per annum but it would go up to 600 and once the expanded part of the facility becomes operational, it would take care of the increased demand for cranes in six years.

The investment in the Kharagpur plant for construction and port equipment is Rs.150 crore in phase-I and in phases II and III there would be an additional investment. These investments are being arranged from three sources internal accruals, a portion of debt and equity.

As you are increasing the capacity of your plant, are you also looking for the export market?
For mobile cranes our territory is India, Nepal, Bhutan, and Myanmar and beyond that we would decide after talking to our collaborators. When it comes to Reach stacker, the agreement with the company is that after one year of production for domestic purposes, we need buy back basis exports to Africa and Middle East and also to other countries through their own distribution channels. In addition, we would also like to talk with Hot mix plant manufacturer Astec Inc. and crushing solutions provider Astec aggregate and mining group to sell their products not only in the Indian market but also in areas fetching more prices as they have their manufacturing facilities in the US and other countries. When they are ready by 2011 we would export out of India also.
NBMCW May 2011
Agrani Enterprises Waterproofing Infrastructure for Longevity & Safety

Agrani Enterprises Waterproofing Infrastructure for Longevity & Safety

“Embracing technological advancements can ultimately lead to more efficient and cost-effective construction practices. This is because the integration of technology in construction companies, particularly in waterproofing, repair, and retrofitting

Read more ...

3D Concrete Printing Workshop with Live Demos

3D Concrete Printing Workshop with Live Demos

Advances in robotics, materials science, and digital design have paved the way for the development of sophisticated 3D concrete printing systems capable of constructing large-scale structures with precision and efficiency. Dr. Vishal Thombare

Read more ...

Jal Shakti Restoring Water To The People of India

Jal Shakti Restoring Water To The People of India

Shri Gajendra Singh Shekhawat, Union Minister, Jal Shakti, shares with S.A.Faridi & Maria R, the challenges and initiatives being taken by the ministry towards effective water management and availability of safe drinking water for India’s burgeoning

Read more ...

Dam Safety Society: Scientific, Technological & Systematic Management

Dam Safety Society: Scientific, Technological & Systematic Management

Dams are critical infrastructure for storing water for a variety of uses like drinking, irrigation, power generation, industrial, domestic, and recreational uses. Managing the precious water assets requires systematic management and

Read more ...

Powerscreen: Strong & Reliable Electric & Hybrid Crushing Machines

Powerscreen: Strong & Reliable Electric & Hybrid Crushing Machines

Powerscreen is actively engaging with its customers to glean information on their job requirements and suggestions, and accordingly making enhancements in its products like Electric & Hybrid Crushing Machines, making them more

Read more ...

Sany India: Batch Mix Plants, Excavators, Cranes & Pilig Rigs

Sany India: Batch Mix Plants, Excavators, Cranes & Pilig Rigs

This achievement is a testament to SANY India’s commitment to provide high–quality, reliable and innovative equipment to the Indian market. Surpassing 30,000 machines operating across India fills us with immense pride. This significant milestone

Read more ...

Paving The Way for More Efficient And Timely Construction & Manufacturing Processes

Paving The Way for More Efficient And Timely Construction & Manufacturing Processes

Transformation of the infrastructure industry is vital for mitigation of climate challenges and the Blue-Green infrastructure offers a sustainable and self-healing solution for the problem at hand, informs Nikhil Jain, CEO, Qubik Group

Read more ...

MCOS Global: Solutions to Reduce Project Delays & Achieve Sustainability

MCOS Global: Solutions to Reduce Project Delays & Achieve Sustainability

Subhashis Kar, Managing Director, MCOS Global presents possible solutions and measures to effectively reduce delays in infra construction projects and bring sustainability in urban developments. MCOS Global is a prominent player

Read more ...

EXCON 2023: Showcasing Construction Industry’s Resilience and Vibrancy

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

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

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

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 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

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 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: 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

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: 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: 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

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 ...

To get latest updates on whatsapp, Save +91 93545 87773 and send us a 'Saved' message
Click Here to Subscribe to Our eNewsletter.