Atlas Copco Specialty Rental has taken a page out of its book and is inspired to think big and go beyond, answer crucial questions, and find solutions to complex challenges our industries and societies face, not just today but also in the future.

Over the last decade, the rental industry landscape has seen many dynamic shifts, both in terms of technology as well as innovation. While the construction and mining industry would use more diesel engine-driven equipment traditionally, electric machines have now started taking the spotlight and we have designed products with sustainability in mind. We have developed solar-powered light towers, E-Air electric mobile compressors, ZenergiZe energy storage range, etc.

At Atlas Copco Specialty Rental, we have earmarked these evolutionary trends, identified micro and macro-opportunities, and designed groundbreaking solutions to overcome hurdles, achieve goals, and engineer change. This is clear from the number of projects we have spearheaded such as the world's largest refining hub in India, strategic crude oil storages, off-shore - deep sub-sea pipeline, construction of mega fertilizer plants, production of ventilators during Covid to an Indian government entity, supporting major vaccine players during an emergency for production of vaccines.

Our key operational strategy has always been two-pronged. It is not just the rental equipment but also the expertise of our people, that makes all the difference to our customers. We cater to a broad spectrum of industries “ from energy, and oil and gas to power, manufacturing, automobile, construction, and many more. If we were to closely understand the rental business in India, and zoom into the construction industry in particular, we see a lot of scope.

Rental is a capital-intensive business and most of this investment goes into the rental fleet. The compressor rental market is currently unorganised, fragmented, and scattered, with very few major players having a significant presence across the country. There are hundreds of small rental companies operating across India, and these companies are now diversifying. Gradually and eventually, rental companies are evolving instead of cutting the corners or compromising on the quality of fleets they are investing in energy-efficient technologies. The industry faces the concern of low rental penetration. This is because the number of organised players with large rental fleets is limited. This issue can be tackled by changing the mindset.

Atlas Copco Specialty Rental has also played an instrumental role in bringing a mind shift for clients. Earlier, the rental would be limited to leasing out machines and equipment. We have invested heavily in technology and manpower to turn this supply-demand transaction into a solution-based approach.

The ethical way of doing business is the foundation of everything Specialty Rental does, irrespective of where we operate in the world. And under this, we have committed to creating a proactive drive towards sustainability, improving and strengthening business practices, and offering a sharp focus on building and maintaining trust, transparency, and integrity with our clients, our employees, and our key stakeholders.

Our commitment to sustainability and corporate responsibility is reflected in all of our policies and practices. Being loyal to this cause builds a culture of responsibility and trust, where taking ownership throughout the value chain is fundamental to our success and a way to drive real lasting impact. Building on decades of sustainability reporting, our journey began by marking progress on environmental, social, and governance goals aligned with the UNs Paris Agreement.

We have an approved science-based target to reduce the emissions from our direct operations, such as manufacturing, vehicles and offices, and from the energy we use. We aim to reduce these emissions by 46% by 2030, compared to our 2019 baseline.

We also have an approved target to reduce our value chain emissions, mainly the carbon impact of our products in use, by 28% by 2030, compared to our 2019 level of emissions.

If we talk about the future for rental in Indian market, we are optimistic about it. This largely comes from the fact that India is seen as the fastest-growing economy in the world and is on its way to becoming the third-largest construction market globally. The infrastructure is a key driver for the economy as it is this sector that is confident in propelling Indias overall development and also receives undivided attention from the Government for developing crucial policies that would ensure strict adherence to time and quality, maintaining high standards, and offering world-class infrastructure.

This sector includes power, bridges, dams, roads, and urban infrastructure development and even though construction equipment leasing is still in a growing phase and accounts for 6 to 8 per cent of the overall construction equipment market, there are many indications that there is soon going to be a turning point in this data.

Rapid urbanization and development are pivotal to its growth. This will directly affect the growing economy, bringing more opportunities for the construction business. The equipment leasing business is a widely recognised business sector in which suppliers and other professionals can rent out unused or idle equipment to other contractors and professionals. Smaller companies that are short of capital cannot buy construction equipment because of the small volume and uncertainty of projects.

So, to have optimisation of cost and time, leasing this equipment is done to small or medium construction companies. And the percentage of such names is higher.

Conclusively, India has nearly $2300 million worth of construction equipment sold every year, out of which 7 to 8 per cent is sold to rental companies. The current scenario allows focus on regional areas for construction, giving the rental business an organised way of working, and is expected to grow year on year in days to come in India.

ABOUT THE AUTHOR:

The article is authored by Mukesh Sharma, who is Country Manager of Atlas Copco Specialty Rental. He keeps a close eye on the shifting market trends and studies the undercurrents of the dynamic rental business closely. It is his passion to lead his entity with knowledge and commitment, offering deep insights and a clear vision, helping India emerge as a leader in the construction industry, opening up newer, and bigger avenues in the future.