We have the AWP products of Terex in our range; apart from these, we also have spider lifts from Platform Basket, Italy, says Ketan Patel, Managing Director, Maco Corporation. Excerpts from the interview.

Brief us on the core strengths and competencies of Maco Corporation.
Basically we are a diversified industrial company. Maco's core strength is its industrial penetration. Maco has a presence in heavy industries like steel, construction, oil and gas, power, railways and much more. Our competency is the ability to promote all the products we have in our range and extend our after sales service. We provide after sales service effectively through our service engineers located at various places across the country. We are also flexible with our customers when it comes to terms and conditions. This is one of the reasons that as on date we have sold about 600 machines and we have about 500 happy customers.

What is the market potential for access equipment?
The market potential for aerials is very good and promising, too. Although the last two quarters in general has been not good, for aerials we have been managed to achieve the YTD target planned in the beginning of this fiscal year. I see a good future because this product is not a luxury but is more like a necessity.

The acceptance level for this product is increasing rapidly, compared to what it used to be 2-3 years back. Earlier we need to explain what this product is all about. It used to take a lot of time and effort, but now it is comparatively faster.

Tell us about the product range and services on offer.
Basically, we have nine strategic business units (SBUs). In the access equipment segment, we are representing Genie Industries, a Terex company. We are authorised, exclusive distributor for Terex aerial work platform (AWB) division and sell Genie products. Apart from these, we have self-propelled spider lifts from Platform Basket, Italy, which Genie does not have in its product range. However, we can say that we are almost one hundred per cent of the contribution to the access division is from Genie Industries. We are into sales of new machines, renting these units and also selling used machines.

What are the major challenges Maco Corporation faces as a service provider?
First of all I would like to correct that we are more of a seller first and then a service provider. So, the major challenge is selling the product, not supporting the product. We have a good group of qualified service engineers. They are all trained at Terex and are able to handle any situation. That is the reason our business is growing. But challenges would be in selling the products first and awareness of the product.

The major challenges, amongst many others, are a lack of awareness about this product amongst the customers, lack of safety rules and regulations, very poor implementation of standards, high import duty and forex conversion making the product expensive. Affordability of the product is another challenge. Another challenge is the turnaround period from enquiry till order, which is about nine months minimum.

What is your geographical spread?
We are well covered throughout India, with our head office at Kolkata and full-fledged branches at Mumbai, Vadodara, Chennai, Hyderabad, Bengaluru, New Delhi, and Bhilai. In future, we are planning to spread our presence to smaller cities.

Which are the segments where awareness is fast picking up?
Our focus is almost everywhere equal and founded very strong. However, in the current scenario, the construction segment is picking up fast, and our focus is on this segment presently.

Is there any new segment opening up for access equipment in the Indian market?
Access equipment are products which have no limitation on their application. It's the question of awareness, priority to safety and affordability. If all these are taken care of, there are no limits on the segments it can be used in. Right now, I can say that we are strong in shipyards, steel, power, hospitality, aviation, and construction industry.

How do you look at the potential for rental for this kind of equipment?
The potential for rentals is very good; however, the rental rates are coming down drastically. The concern is that the rental industry for such products is not an organised sector. This is not allowing the rentals business for access equipment to grow. There is no industry body or association, and if at all they exist, it doesn't have not been able to create any value.

What is the value proposition Maco Corporation provides to its customers?
Our strongest value proposition is our service support and our flexibility on any front. Also we sell products from Terex, which are value for money. They are not over-priced and the customers are happy.

How do you look at the competition in the segment?
I would like to use the word cousins rather than competition. And we are all here to build a market. So right now Maco, Terex or any other, all of them are building the industry. And the fruits will be enjoyed three to five years from now. So I don't really look at it as competition.

Do you provide trained operators?
We have trained operators and we do provide skilled operators wherever it is required. When we sell a product to a new customer, we are basically selling it to the end customer. And over there, we train their operators for two to three days. And certify them as a certified trainer from Maco site. Thus, whenever they buy a new machine, satisfactory training is imparted to them with proper training modules. There is a training module where there are classroom training, physical training, and tests to pass.

Do you think that tightening the safety norms could help augment the growth potential of this segment?
Safety norms should be tightened and also there should be proper legislation and respective bodies. We cannot say straight away government but respective bodies should be governing this more strictly. This will definitely be a big contributor. I strongly feel that it will boost the market.