There’s high demand for rental equipment across CEQ categories
What according to you is the scene of the rental market in the construction equipment segment?
There is a huge demand for rental equipment throughout all CEQ categories. This is the best time for a rental company in the past eight to nine years, where a rental company gets better rates, timely payments, and maximum utilisation.
This would be the best time for global players to enter the domestic market with international standards. Also, an ideal situation for domestic players to expand their fleet size.
Construction equipment rental is picking up in India. What are the reasons behind this?
Yes, there is a surge in rental demand for AWP and MHE in India. This is both due to the demand-side and supply-side. After Covid-19 break of almost two years, investment is pouring into all major sectors is it by the government or by private companies.
How is it better than buying in the construction equipment segment?
There are extra advantages in getting machines on hire than to purchase. Whether it is a construction of a new factory or airport or another site, or a running plant or a warehouse, timely completion or delivery is the key. And to achieve that, it is a proven fact that rental companies have always outshined. Entrepreneurs like us have always believed in going the extra mile in satisfying their customers with the best service and high-quality equipment.
Good quality updated equipment and on-time services help achieve timely completion of a project and achieve daily targets. And not to forget the one big advantage of getting equipment on rent is capital expenditure savings.
How are the latest innovations and technologies changing the infrastructure sector? How is your company focusing on this? Which segment is driving the demand?
Keeping both environment and cost in mind all big companies have realised that it’s time to move towards battery-operated machines. Above and beyond, clients have welcomed the lithium-ion forklift with open arms. It does not just save the environment, but it also saves additional battery costs to a rental company for two to three shift operations. Maintenance-free machine and long-term warranty are additional benefits that our OEM Hyundai is providing.
How is equipment financing doing for construction equipment?
I have always believed that equipment financing banks and NBFCs are vital stakeholders of a rental organisation. The last two years have been a rollercoaster ride for all, in the beginning of 2020-21 with low demand and uncertain future financing companies have been a great support with MSME loans and other ECLGS programmes guided by RBI. And within a year there was huge demand if machines, which was again supported by financing companies with funds and good rates. Be it LC, domestic credit, suppliers’ credit, etc. Banks and NBFCs have products for all. The base is all set for the huge demand for equipment in near future and beyond that too.
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