Hyundai excavators operate on CAPO (Computer Aided Power Optimisation) technology whi?ch offers better matching of hydraulic circuitry with engine torque curve, says Dheeraj Panda, Head ? Marketing and Key Accounts, Hyundai India. Excerpts from the interview.

How do you view the growth prospects of the CE industry, especially for the excavator segments, and what are the growth enablers?
The market for infrastructure and road development is positive while the macro indicators are not encouraging in the short term. The market is expected to grow at 12-15 per cent compared to last year. The slowdown in mining activities and general policy paralysis will pull down growth while the upcoming projects and thrust on road sector should give the desired impetus for the construction industry to go ahead during this tenure.

What is the demand-supply scenario for excavators for different tonnage and horse power?
The market for the 20-tonne class of excavators is close to 50 per cent of the total excavator market. The lower tonnage class comprising 8-14 tonne is expected to do better while the large tonnage market will be steady on account of slower mining activity. The total size was about 15,000 excavators in 2011 and is expected to grow at 12 to 15 per cent in 2012.

Which is the fastest-moving class in terms of tonnage and horse power?
 The 11 to 14 tonnage class excavators are the fastest growing segment due to ease of mobility, lesser capital investment and upgrade of tractor and BHL segment customers to this class, while the 20 to 22 tonnage class enjoys the maximum share in the excavator market.

Many first time buyers opt for BHL as the price of excavator below 10T is over fifty per cent more than BHLs. What is the trend now and how do you look at the potential for the market segment that graduates from BHL to excavators?
The incremental growth in BHLs is likely to be slower than that of excavators in the future. There is a strong trend which indicates user preference of smaller class of excavators over BHLs, however, the BHL market is expected to go strong owing to huge opportunities in the small and medium size of contractual earth work.

What is the market for excavators in the mining, quarrying, and dimensional stone segments?
There is a strong presence of excavators of 14 to 30-tonne class in these segments. The presence is higher in the states of Kerala, Tamil Nadu, Haryana and Rajasthan where the quarrying activities are in full swing.

What are the technology trends in the mid-sized excavators?
There is a positive trend in the mid-sized excavators with clear user preferences for higher technology. This has come in owing to squeeze in project time and stiff competition in rates. The demand is for higher productive machines with lesser fuel consumption and higher component life. The consumption of spares and other running items and the cost thereof is of paramount importance while choosing the make and series of equipment in a project.

The input cost is heading north, putting enormous pressures on the OEMs. Added to this is the Budget putting more pressure on the manufacturing sector. What is your take on this?
We have positioned our excavators as value for money proposition to the customers along with our support offerings across India. The targeted localisation and other initiatives to bring down input cost (vis-?-vis a feature benefit analysis) will also go a long way in helping us provide better offerings at expected market price.

How do you assess the potential for various attachments and what are the market trends?
The potential is high for attachments like rock breakers and clamshell buckets.

Tell us about the range offered by Hyundai India in excavators for various segments.
Hyundai India offers excavators in range from 8 to 120 tonne. The main USPs for Hyundai machines is low fuel consumption, high productivity and lesser maintenance cost.

Brief us on the hydraulics. How does it help in better performance and fuel efficiency?
Hyundai excavators operate on CAPO (Computer Aided Power Optimisation) technology which offers better matching of hydraulic circuitry with engine torque curve. The boom, arm regeneration coupled with swing priority ensures lesser cycle time and more productivity. The excavators offer a combination of three work modes along with three operation modes to suit all application. The user mode allows the operator to set parameters like engine RPM and pressure to work at the desired efficiency. These machines also offer dual speed for travelling.

Has the latest emission norms brought any design changes in the product?
Excavators that we offer in Indian market already comply with the current emission norms and per se, there isn?t any need to make any changes.

What is your take on the fragmentation that is happening in the CE industry?
Yes, we see a lot of new entrants coming into Indian market owing to its potential as an emerging market. We expect the market leader to command market shares around 12 to 15 per cent only in the longer run while the volumes go up for each player. The fragmentation is bringing in a lot of choices to the customer while they need to exercise caution about the offering from new entrants.

Tell us about the plant facility and capacity. Is it fully utilised and is there any plans for capacity augmentation?
The Chakan plant near Pune in Maharashtra was set up over 50 acre with an investment of Rs 300 crore in 2007. The state-of-the-art manufacturing facility boasts of the best-in-class technology, churning out world-class products. At present, the plant manufactures around 2,500 units per annum which can be scaled up to 10,000 units per annum. At the Pune plant, excavators ranging from 8 to 34 tones are manufactured.

Any new products planned?
We have launched the 9 series excavators in both 22T (R220-9S) and 14T (R140-9) recently, which had a good market response. The excavators offer state-of-the-art technology with respect to hydraulic and engine power curve matching, unmatched operator comfort and ease of operation. The higher productivity, lesser fuel and operating cost, and enhanced component lives are sure to make this a product preferred over competition. The machine also offers data download facilities along with operator choice of mode (with engine RPM and pressure settings).