CASE aims to offer a full line of construction equipment
The Indian market is being given huge importance. We are investing heavily in research and development (R&D) and manufacturing. In 2012, CNH, our mother company, invested more than $650 million in R&D around the globe; this is a significant 24 per cent increase compared to 2011; in India, we have been and we are today investing in every field, in manufacturing, product development and technology, and network development, says Anil Bhatia, Director - Sales and Marketing, Case India. Excerpts from the interview.

Please brief us on your ongoing activities in the Indian market.
When we acquired a hundred per cent stake in 2011 in our previous joint venture, Case made a commitment to our stakeholders and customers to bring into the country, in the coming years, a full line of construction equipment. Along with this commitment, as a first step, we introduced the skid steer loaders in July last year. Recently, we launched the new B Series motor grader and F Series wheel loader for the Indian market. This was our second step. We are the market leader in the compaction equipment segment; we have not only maintained this position but have also increased our market share by 2 per cent in the last couple of years. Most importantly, we wanted to offer complete solution for the road construction segment. Our newly launched Grader B Series complements this requirement with our compactors. Being a market leader in compaction, this was an obvious choice. We also wanted to enter the mining and quarries market segment. The increased focus on infrastructure sector especially in the road development, and the enhanced impetus on coal mining to meet demand for thermal power generation, encouraged us to venture into the mining sector.

We had also made a commitment that we will upgrade our product ranges in line with our customers' needs and our quality standards, so we recently launched the upgraded version of 752 vibratory compactor. The 9-tonne CASE 752 vibratory compactor will give the engine longer life and higher fuel efficiency. We are also planning to launch a new soil compactor shortly. In brief, we are moving towards fulfilling our commitments.

We are also the second player in the backhoe loader segment. Case has a long tradition in this product line. It introduced the industry's first factory integrated backhoe loader available from a single manufacturer back in 1957. Case's pioneering worldwide backhoe loader leadership will contribute in cementing further our position in India. Along with this tradition, Case backhoe loaders manufactured in Pithampur represent today a point of reference for customers in terms of productivity and low costs of operations.

As far as our head office is concerned, the Indian market is being given huge importance. We are heavily investing in R&D and manufacturing. In 2012, CNH, our mother company, invested around the globe more than $650 million in R&D with a significant 24 per cent increase compared to 2011, while full year capital expenditures totalled over $550 million, with an even more significant 36 per cent increase from 2011, largely driven by investments in manufacturing sites and product launches.

As a result, in India we have been and we are today investing in every field, in manufacturing, product development and technology, and network development.

We believe in the long term perspective of Indian economy. We feel that there are lots of opportunities for all of us and we should be in a position to grab those. With increased investment, we have plans to make India a manufacturing hub for certain group of SAARC countries.

In pursuing our growth objectives, we can also leverage on the advantage that comes with being part of a larger and solid Group. Case is a division of CNH Global NV, a majority-owned subsidiary of Fiat Industrial SpA. Last year, our Fiat Industrial group had a turnover of around euro 25.8 billion ($ 34.4 billion) with a growth of 6.2 per cent over 2011.

You said that Case has very strong position in the compacting equipment segment. Does the existing product range back this up?
Yes, in the compacting equipment segment, we have two product lines: vibratory compactors and soil compactors. We have been market leader in these two segments for many years and we are still consolidating these positions with a 30 per cent market share at the end of 2012.

What are the new features you have incorporated in the upgraded version of 752 vibratory compactor?
Basically, we have two major objectives. As the diesel fuel price is going up every day, our focus is to increase fuel efficiency, thereby lowering the operational cost. We have installed more fuel-efficient engines to achieve maximum efficiency. Secondly, based on the feedback received from customers, we have improved operators' comfort. We introduced some modifications and changed the canopies to isolate operators from vibrations.

In the current scenario, the mining sector is not performing well; however, you have entered this sector....
For Case, we do not look at the short-term objectives; we have a very long-term perspective as far as the Indian market is concerned. We see huge growth potential in the mining sector. Apart from quarry and mining, the newly offered wheel loader models can also be used in road construction, which is again a potential sector for us.

The Government of India plans to invest heavily in the road-building sector during the 12th Five Year Plan. How do you envisage your growth alongside this?
Our entire range of products starting from backhoe loaders, compactors, graders, wheel loaders, to skid steer loaders - all have applications for the road-building sector. So, we are well poised to take the advantages from the future planned investment in road-building.

Are you going to set up a separate facility for upcoming products?
No, we have sufficient space at our Pithampur plant. We have acquired some extra land there. At the moment, we plan to expand our existing facility and with the launch of more products we may look for other options.

After venturing into new verticals and the introduction of new products, are you going to revisit your sales and marketing strategy?
We are into the constant process of strengthening our dealership network. Today we have 18 main offices - including seven zonal offices - and about 60 dealers with a total of more than 160 outlets. By the end of 2013, we are likely to expand further the network with the opening of new outlets.

Are you looking at any particular region for expansion?
No, we would like to expand our network across the country.

A lot of infrastructure developmenal activities are expected in the north-east. Do you have any special focus there?
We have strengthened our position in the north-east and probably have the highest market share in two product lines. We have our own office at Guwahati.

Are you going to make any significant investment in R&D?
Yes, while we are investing in all fields, about 30 per cent of our investments goes in enhancing manufacturing efficiency and making our Pithampur base a manufacturing hub for other countries. We regularly visit our customers and assess their needs. Taking their needs in mind, we do R&D. We have 28 R&D centres, including one in Pithampur. We have synergies across all the R&D centres and are able to adapt to the needs of the customers.

Could you brief us on your long-term objectives?
We would like to be a one-stop solution provider in the construction equipment segment with a full product line. Secondly, we would like make India the manufacturing hub for export countries.