We work closely with our customers and provide the best technology and integral consulting solutions for their projects. Our timely after sales, operation and maintenance services all keep us close to our customers, says Rajeev Kumar, Chief Executive Officer, Friends Equipment.

What can you tell us about Friends Equipment, its core competencies and strengths?
Friends Equipment offers a wide range of construction equipment like crawler cranes, tower cranes, construction hoists, lifting platforms, side boom cranes, etc. We also offer crawler cranes, truck cranes and tower cranes on a rental basis.

To serve as a vital and trusted partner for customers in construction, industrial, power plants, petrochemical, refineries, mining, cement plants and other businesses across India, we provide integrated consulting solutions, timely rentals, maintenance, service, and sales of new and used equipment and spare parts. We provide the customer with end-to-end solutions by offering them the operation and maintenance services for all our equipment at very reasonable prices so that the equipment offered by us will be utilised properly with maximum efficiency.

Is there any particular reason for Friends Equipment representing only Chinese companies?
We are associated with companies from China because they offer quality products in a reasonable price range. When we talk about Chinese companies, there is a speculation about the quality of the products but the companies we represent are market leaders in their respective product category.

Today, Chinese companies have come a long way and have acquired leading European companies like CIFA. We are comfortable with the Chinese companies as we understand their products very well, we know what kind of quality products they are manufacturing. We provide these machines with imported components from China and Europe.

As a new entrant to the market, what are the challenges Friends Equipment faces?
The times are really tough for new entrants. Even the existing players are not able to do well. We have studied the market well in the last few years and have come to know its exact requirements. Our basic objective is to make the customers happy and satisfy by providing them good product at reasonable prices, with good after sales service. We faced some problems in the beginning as a new entrant, but we have been supported well by our OEM and some of our major customers, too. That's why even though these are turbulent times, we are surviving well.

Brief us on the types of products and services offered by Friends Equipment.
We sell crawler cranes from 50 to 3,200 tonne capacity, tower cranes from 5 to 100 tonne capacity including inner climbing cranes and luffing jib cranes, construction hoist with 1-2 tonne capacity and with single cage and double cage. Gantry cranes from 5 to 1,000 tonne capacity, lifting platforms up to 45 m height, side boom cranes (pipe layers) up to 90 tonne capacity. We also offer equipment on rentals and do the installation, dismantling of tower cranes and provide the operation and maintenance services in India.

What is the current demand like, for your equipment?
The current demand has been reduced by about 50 per cent, especially for the big tower cranes and crawler cranes in EPC contractors and rental companies. The economic slowdown, depreciation of the rupee, and delayed payments of rentals are really hitting this sector badly.

Also, the foreign suppliers are not able to match price expectations of the customer because of the fluctuation of Indian currency. The government has already announced steps to remove the blockage and fast-track the implementation of large infrastructure projects. We hope that in the next few months, the demand will increase as some new projects are coming up.

Which product segment do you find has the most potential?
Among our products, crawler cranes, tower cranes and passenger hoists show the most potential, as of now.

Do you think that the current tough market situation is good for your business?
Nobody can say that the current market situation is good for them, especially when you are importing the equipment. But yes, we are doing very well with our services and at present, 60 per cent of our business is from our service department.

How would you describe yourself as a dealer?
As a dealer, we basically promote our OEMs' products to our buyers. Once they buy these products, then we will provide after sales service. Our major focus is after sales services like on-project maintenance. We also take up operation and maintenance of machines at the project site at a nominal charge. Generally, other sales companies won't provide this kind of service. The kind of service we provide ensures that we get repeat orders.

As a dealer, how do you evaluate the current market sentiments?
The market sentiments are not very good for imported products as the cost has increased without the addition of any new features in the cranes. Also, the rental industry is facing a problem as the low rentals and delayed payments are putting them under pressure not to invest to increase their fleet. Our main advantage is our after sales service commitment and operation, and maintenance services which keeps us close to our clients.

What was your performance in the last two years and how do you expect to end this fiscal?
We started our business in 2012 as a small rental company, later entered operation and maintenance and gradually, moved to include sales, too. Right now we have about five product ranges and we are doing well in sales also. Last year was good for us and this year, too, we expect further improvement in our performance.

What is your strategy to stay in the market in the current scenario?
Friends Equipment also provides integral consulting solutions. We work closely with our customers to provide the best solution for their projects. As I mentioned earlier, our timely after sales, operation and maintenance services all keep us close to our customers. Also, we provide the best technology through our equipment, which helps customers save on overall operational costs.

Do you help with financing, too?
All our equipment are financed by major banks and financial institutions. Ours are proven products and the banks take the risk to provide finance. We are planning to do equipment leasing in future when the market conditions improve.

What are your future plans?
We are planning to open our spare parts warehouse and after sales service back up in the areas where we have OEM equipment of more than 25 pieces. This will help us to provide customers with immediate after sales service and minimise the breakdown time, which in result will allow us to penetrate more strongly in the market.