?We are fully prepared to meet the requirements of our customers not only in the concreting sector with our batching plants, truck mixers and concrete pumps but also in our new venture of piling rigs and vibro hammers as well. We have a fairly decent basket of products to serve all requirements,? says Sunil Kumar, Managing Director & Chief Executive Officer, Revathi Equipment. In a chat with Equipment India, Sunil talks about the present scenario of CE market. Excerpts from the interview.
How do you rate the overall performance of the CE industry and how is REL placed to meet the surging demands for advanced products and services in this evolving scenario?
Even though in the last couple of months the industry has seen a downturn, I am quite optimistic of the future. We should see a revival of demand once the interest level comes down. The industry growth would definitely depend on the investments made in the infrastructure in the country. With the planned investments of one trillion during the next five year plan, I would feel that the industry is poised for a growth period in the next couple of years. The most important factor could be the faster awarding of contracts as well as the interest rates coming down.
As far as REL is concerned, we are fully prepared to meet the requirements of our customers not only in the concreting sector with our batching plants, truck mixers and concrete pumps but also in our new venture of piling rigs and vibro hammers as well. We have a fairly decent basket of products to serve all requirements of our cus?tomers. Added to the products is our service network across India to ensure uptime of our machines. We feel customers would see value in all this and we hope to get their continued patronage.
How does REL look at ending this fiscal?
We expect to register a growth of more than 50 per cent this fiscal. Our growth should primarily come from the investments in infrastructure and RMC segments. I feel in the next couple of years, the growth coming from Tier-2 and Tier-3 cities will also be quite substantial.
What is your take on some of the major issues the industry faces such as high cost of funding, fluctuating cost for input materials, devaluation of the currency, and the like?
Cost of funds is one major issue affecting our customers and the industry. Once the interest rates come down, coupled with faster implementation of projects, we should see a revival in demand. We import hydraulic compo?nents for our products and to that extent, we are affected by the devaluation of rupee.
There is now a lot of emphasis on the quality and reliability of products and customers will not compromise on this vital aspect of their buying decision. Also, the concept of total cost of ownership is gaining credence and customers have started evaluating options based on TCO.
Buying decisions depend on the value proposition you are able to deliver to the customers.
What are the initiatives taken by REL towards more affordable and application-oriented product lines with more value add-ons?
We already have a wide range of products to suit diffe?rent application requirements of our customers. For example, our THP45 concrete pump is specially suited for high-rise pumping.
How do you view the threat of import from LCC?
As I said earlier, customers are evaluating products not only in terms of price but also on other aspects like product reliability, service back up, availability of service man?power, etc. Third-party certification would ensure the customers are getting the right products.
How are exports doing for REL now?
We would be focusing more on the domestic markets for our construction equipment but for our mining products we are looking at exports in a major way.
To what do you attribute REL's success?
We feel our superior products coupled with our network of sales and service teams are ensuring that our products deliver as per our promise. We are constantly in touch with our customers and would like to see them happy all the time.
Tell us about the impact of the stringent emission norms on OEMs
We follow the laid-out regulations on emissions norms for our product category. The impact could be the increase in cost of the products.