Mait has been actively involved in helping the clients in business development by way of giving leads about upcoming piling jobs or rental enquiries, providing special assistance in terms of suggesting efficient methodology, selection of suitable equipment, and providing training, too, says DV Brahme, Regional Manager, Mait India. Excerpts from the interview.

How do you assess the current CE market scenario and its growth prospects?
The current market scenario is bleak and there are no growth prospects visible in the short term. However considering the population and large size of our country, in the long term we are very hopeful about great business opportunities.

Which are the major areas to be addressed on a war footing?
The only major things that need to be done are by the government is releasing funds as well as fast tracking the clearances of the projects that are on hold. The construction industry will take care of the rest of the things that will bring back the CE sector on a healthy growth trajectory.

Currently, there are so many projects already announced and more in the offing on paper. Also, we hear many new announcements every day, but that doesn't interest anyone anymore. Unless people see actual action from the government, no one will believe things on paper hereafter.

What are the challenges you face as a manufacturer and service provider?
The current challenge or priority for everyone is to keep afloat and somehow survive these bad times in a hope of good times to come.The means to achieve it is austerity. Increase the efficiency and reduce the cost. Of course, these remedies can work for short periods for individual companies but for the industry as a whole, collectively it hurts everyone in the long term as the bottom line gets thinner by the day.

What is Mait's strategy to bring about competitive cost?
The product of input cost is price and is like a twin-edged sword. When the volumes are good and prices are reasonable it works well. But when the volumes start reducing, the input cost goes up, bottom lines get squeezed and margins start evaporating. To maintain the bottom lines, if the prices are increased in such situation, it has an adverse effect and the volumes drop further and erodes the bottom line still more. Otherwise also, without increasing the prices if the volumes keep on dropping the margins evaporate much faster. It is a vicious circle that could eventually be fatal if continued for a long period. The strategy is to increase efficiency and reduce cost which is a continuous process.

How long will you be able to sustain the pricing levels?
Price is a relative term and depends on various factors. Mait provides the best value in terms of overall package for the price paid by its clients. When all the avenues of reducing input cost are exhausted, we will need to pass on the additional costs incurred to the clients and the prices will go up. If the market starts picking up and the volumes grow, we could sustain the same pricing.

Tell us about Mait's focus on providing value additions.
As always, Mait has continued providing its clients quick service and spare parts support. In terms of value addition, Mait has been actively involved in helping the clients in business development by way of giving leads about upcoming piling jobs or rental enquiries, providing special assistance in terms of suggesting efficient methodology, selection of suitable equipment, providing training, etc.

Mait also has been assisting prospective buyers of used equipment by way of submitting a detailed health report of equipment under consideration for purchase and thereby helping them take well- informed decisions.

What was Mait's overall performance in 2012?
Mait's performance in 2012 has been reasonably good in terms of market share in the context of the severe slowdown in the construction industry. In terms of units sold there is negative growth and consequently the bottom line has also been affected.

How do you differentiate your products from the competition?
Mait rigs during the last 12 years have been proved to be the most reliable machines under tough site conditions. Majority of the clients in India prefer to buy Mait rigs due to their high quality, reliability, high productivity and fuel efficiency. Mait rigs are not only easy to operate but also are easy to maintain and repair. Safety features of highest international standard are incorporated in these rigs.