Eyeing New Heights

The construction equipment and equipment financing industries experienced a series of highs and lows throughout 2022. As the new financial year starts, both sectors turned their attention to infrastructure as the driving force for future growth.

We will have our biggest presence in Excon this year

The construction equipment (CE) segment has already been riding a massive infrastructure push by the government. The CE market grew by around 32 per cent in 2016-17 (unit sales).

Graded Up

If tightened completion time is demanded as in the case of Delhi peripheral ring road by Supreme Court, it will sure to up the demand for advanced, high capacity motor graders.

Movers & shakers

We are positive about the near future

There will always be competition regarding rates and credit. Then again, how effectively you will be clear and open to the customer in understanding his needs and matching it with your schemes are key components,

We have positioned ourselves as a true infrastructure partner rather than a lender

More projects, faster enviro?nm?ent and forest clearances, support in land acquisition and a general clarity in policy are the key. Any infrastructure project takes time and stability of policy is a must to ensure that investment flows, says DK Vyas, CEO, Srei BNP Paribas.

We at Shriram treat FTUs as niche and are focused on supporting small customers.

All bottlenecks on the project execution side, i.e., environmental, land clearances, financial closures, allocation of funds, and awarding of contracts need to be tackled on an immediate basis, or else the industry will see a major down-turn and many good operators will exit the segment, says Rakesh Chandra, Vice President and Risk Head, Shriram Equipment Finance Company. Excerpts from the interview.

Magma is a well-diversified business with six business lines

No equipment group is able to drive growth which is primarily due to the fact that the overall infrastructure and mining segments have been impacted by various factors, says Sumit Mukherjee, National Sales Head, Magma Fincorp. Excerpts from the interview.

Navigating through turbulent times

Overall slowdown in demand for new equipment, absence of new channels for the deployment of equipment compared to the overall availability, plummeting value of currency, lack of clarity on private coal blocks, highly depressed rental rates - all seems to have had its negative impact on the equipment finance segment.

We cater to the entire value chain from procurement to deployment to disposal.

Our pan-India presence and in-depth knowledge of the Indian market make us a preferred player for any equipment manufacturer, (Indian or foreign, who is eyeing the ICE market in India. A proper risk management system, floating interest rate financing and customised offering have been major growth factors for us, says DK Vyas, CEO, Srei BNP Paribas. Excerpts from the interview.

We shall nearly double our net profit and increase asset size by 65% this year

We are certainly one of the largest FTU segment financers in the CE industry and nearly 65 per cent of our book holds FTU and small customers. This originates from our parent company's philosophy of empowering small customers and entrepreneurs, says Pratap Paode, Chief Executive Officer, Shriram Equipment Finance Company.

Equipment financing: An evolving scenario

While the government is expected to roll out more reforms soon, the key issue is implementation on the ground. If policy issues are addressed and initiatives are implemented, it will give a boost to the equipment financing in India, Infrastructure segment has been witnessing a major slowdown due to various issues around land acquisition and environmental clearances

Mechanisation in rural areas leads CE demand

It is quite surprising that on one side, the infra sector has slowed down and on the other, equipment sale is going up. As per the leading manufacturers of construction equipment, excavator sales have increased by approximately 10 per cent during FY 2011-12 compared to FY 2010-11.

We expect to achieve our target disburse?ment figure for FY12

At Excon, 2011, we are offering some unique innovative products like the Asset Power" with a pre-approved credit limit, which is a co branded card with our manufacturing partner wherein a customer

Religare enters CE Financing

Within a period of two years, Religare has built a customer base of over 12,000 and a portfolio of Rs 1,500 crore, plus a collection efficiency of over 99.5 per cent.

Equipment Financing: Shriram will be one of the biggest retail CE financiers soon

Differentiation in NBFC and bank regulations on income recognition on NPA assets, risk weightage on assets, TDS on repayments, all are some of the major challenges, says Pratap Paode, Chief Executive Officer, Shriram Equipment Finance Company.

Equipment Financing: Our biggest strength is our customer centric approach

NBFCs have developed substantial expertise in lending to this industry and hence, enjoy an equal share in the pie, says KV Srinivasan Chief Executive Officer, Reliance Capital while discussing CE financing segment with Equipment India.

Equipment Financing: Widening the Net

CE financing has definitely picked up and has registered a growth of 20 per cent over last year. Though the industry has not touched the peak levels of 2007-08, it expects to end the 4th quarter on a high and continue the growth story in 2011-12.

Srei BNP financed equipment over Rs 5,000 cr in Q1FY12

The main vehicle for leasing in India are the NBFCs, but these financing entities do not enjoy a level playing field vis-?-vis banks. For example, in terms of NPA allowance and recovery of bad assets, banks have a clear advantage over NBFCs.

The growth in coming quarters is very much dependent on inflation

Strong customer demand, rise of out?sou?rcing, entry of high cost sophistic?ated equipment and expected chang?es in legal, regulatory and tax framework would be the key enabler of a rise of leasing market in India.

Topline jump

It's a clear growth pattern. The consolidated financial results for the last fiscal (April 10-March 11) announced by many of the major OEMs shows a definite growth trajectory especially in the lifting and earthmoving and the concrete equipment segments.