Volvo CE: We will enlarge our offerings in road equipment
How do you foresee the demand of road construction equipment during the current and coming fiscal?
The demand is surely expected to remain firm. As per our own observation, there is 50% rise in demand of equipment in 2016 as compared to 2015. The trend is well likely to remain firm, based on the governments' strong commitment to restart the stalled projects along with carrying forward the tendering process of the new projects. The buoyancy in road construction has catalyzed demand of road equipment across the range from pavers' compactors, graders. It has also contributed towards rising demand of base equipment, like excavators and backhoe loaders, which goes for preparation of surface as well as handling of aggregates. However, demand of wheel loaders has remained modest. Overall, based on the present traction in the market, we expect market will remain high during 2016-17 and 2017-18 as well.
What will be your mid and long-term strategy to encash on the rising demand?
We have recently brought in our new 7 meters pavers which will enable us to fill the existing gap in the market allowing us to leverage our position in the market. Presently, offering from the other manufacturers are 5 and half meters and 9 meters in the market. With the launch of 7 meters pavers, Volvo CE India has now got complete offerings from its stable for the road construction sector. This ranges 5.5-7-9-10-13 meters pavers. The 5.5 and 7 meters pavers are manufactured in India.
Which are the other allied solutions you are looking to bring in? How do you propose to make the offerings competitive?
We will come up with new road compaction solutions soon. Following our acquisition of Ingersoll Rand road equipment division, we continued developing the technology carrying out further improvements according to users' needs. One of the major competitive features is the 'Variable Frequency' control. While other manufacturers are offering 2-3 fixed frequency control for drum vibration, we offer compactors on variable frequency control which allows the operator to match the drum frequency to different soil conditions and achieve best compaction.
What about intelligent compaction solutions?
We have the ability to offer intelligent compaction solutions in our compactors. However, the India market is not yet fully ready for that technology.
How do you propose to strengthen your excavators business?
We are actively looking to strengthen our market position in excavators. Targeting the mining applications, we will soon launch our next generation EC 950, 100 tons excavator in India. We have slated the launch of the excavator, post monsoon. The excavator, which will be imported from Korea, had its official global launch by Volvo CE at Bauma Munich this year.
What are your plans to strengthen your excavators' portfolio with 20, and 30 tons payload category?
We will soon replace, our EC 240, 24 tons excavator with EC 250 D, 25 tons excavator. With the replacement, we will discontinue, EC 240. The fuel efficient 25 tons powered by Volvo Engines, will offer faster cycle times and higher return on investment to the owners.
Growing demand has created supply side constraints for excavators. How are you addressing it?
This was an issue in the first quarter. However, with adequate stocks, we are now comfortably placed towards ensuring availability of products on time based on customer demand.
Published on:
15 July 2016
Published in: NBM&CW July 2016
Share:
We Value Your Comment
