JCB to build largest US factory in Texas

JCB plans to build a new factory in San Antonio, Texas, that will create 1,500 jobs over five years, the company announced today.

FCC highlights growth opportunities in railways

FIRST Construction Council (FCC), an infrastructure think-tank, hosted a virtual discussion forum on Oct 5, 2023, to discuss business opportunities for industry in the developing rail infrastructure segment.

Building the Future

The market for wheel loaders is seeing fresh traction due to the buoyancy in road construction activities. Fresh off take of coal due to a surge in thermal power production is adding to the demand.

Govt approves Rs 179.39 bn for UP Capital Investment Projects

The Union government has granted approval for Rs 179.39 billion to be allocated to various capital investment projects under the Special Assistance to States for Capital Investment 2023-24 Scheme for the Uttar Pradesh government.

Embracing the Rental Revolution

Rental penetration is a bit low in the mining equipment industry, but it is increasing on YOY basis due to awareness and availability of latest mining equipment.

The Mining Boom

India's increasing coal projects drive a surge in mining equipment demand!

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.

The demand trend for earthmoving equipment is expected to remain positive

Nischal Mehrotra, Vice President (Sales & Marketing), Liugong India, speaks on the emerging technology trends in the earthmoving equipment industry in India.

Demand for locally-manufactured bearings has been rising

Sujeeth Pai, Director, Industrial Business, SKF India, speaks on the company’s approach to innovation and product development.

The Rise of Equipment Rental

The equipment rental market in India is expected to continue its growth trajectory in the coming years, driven by factors such as increasing infrastructure development, rising construction activities, and growing demand for advanced equipment and machinery.

Sustainability at the Forefront

Going forward, product innovations will be at the core of Ammann’s sustainability efforts

India plans to invest Rs 350 bn by 2047 to build canals

According to Sanjay Bandopadhyaya, Chairman of the Inland Waterways Authority of India (IWAI), India plans to invest Rs 350 billion by 2047 to build a network of waterways across the nation

Bringing the CE industry together

As one of the largest trade shows for the construction machinery sector, bauma CONEXPO INDIA enjoys support from important policy influencers in the Central and State governments.

Infra Push Drives Demand

The rise in infrastructure projects will only see an increase in demand for attachments for construction equipment.

Infra push for mini equipment

According to Arizton’s latest research report, India’s construction equipment market will grow at a CAGR of 8.9 per cent during 2022-2028. Mini excavators hold a decent share in the overall construction equipment industry.

7th India Construction Festival

Organised by the FIRST Construction Council in Mumbai on October 22, the event successfully brought together the who’s who of the infrastructure and construction industry.

India delivers 1st batch of heavy cranes to bolster operations at Chabahar port

India has delivered a consignment of heavy equipment, including cranes, for further development of Iran’s Chabahar port, signalling New Delhi’s commitment to the strategic connectivity project that can provide access to markets in Central Asia

Structural reforms in mining sector to realise its true potential: Pralhad Joshi

The proposed changes in mining sector to increase private sector participation

Can Mobile Cranes Lift the Mood?

Mobile cranes in India have transformed into safer and productive with changing design and new features to meet the upcoming demands from the user market. In the current scenario, can these developments in mobile cranes lift the market sentiments?

Grading the Future

The current market conditions are tough for motor graders since the projects are not active due to the coronavirus impact.

Manitowoc to debut six new cranes at Conexpo 2020

Manitowoc Cranes will unveil six new cranes at Conexpo 2020. In addition, four other crane models that were introduced in 2018 and 2019 will also be on display at the company's booth, with several making their North American debuts.

Manitowoc to debut six new cranes at CONEXPO 2020

Manitowoc Cranes will unveil six new cranes at CONEXPO in 2020. In addition, four other crane models that were introduced in 2018 and 2019 will also be on display at the company?s booth, with several making their North American debuts. I

Containerisation to boost Indian logistics

Seamlessly integrating the vast network of railways, highways, airports and waterways, India is gearing up to strategically position itself as a global containerised cargo destination.

Bigger Digger

Optimum utilisation of excavators is of utmost importance for the economic operation of the machine. All hydraulic excavator OEMs have introduced matching technologies for the optimum performance of their machines.

Attachments provide on-site independence

MB Crusher recently launched its new shaft screeners range at bauma Munich. Piero Guizzetti, CEO, MB India, shares more on the crusher and screener attachments and the market scenario.

Pushing Growth

Motor grader market has seen growing in the past couple of years with applications spreading into rural road projects as well as in highways.

Indian market has a great growth potential

Founded as Racine Threshing Machine Works in the mid-western US in 1842, CASE Construction Equipment today operates as a subsidiary of CNH Industrial.

We see strong growth in infrastructure industry

As one of Asia's biggest material handling solution providing company, ElectroMech is present in more than 55 countries across the world. Tushar Mehendale, Managing Director, ElectroMech Material Handling Systems (India) Pvt Ltd shares more on the company and the industrial cranes market.

On growth track

Industrial cranes are mainly used in the manufacturing sector to handle loads. The major manufacturing sectors include, steel, paper, automobile, and all engineering product manufacturing.

Aggregate Boom,Policy Gloom

Crushers and screens market is poised for a demand boom with the focus slowly shifting towards higher capacity machines to meet the growing demand for aggregates.

Innovative welding technology transforms productivity

A pioneering new type of local vacuum electron beam welding technology developed in the UK by Cambridge Vacuum Engineering (CVE) is helping to revolutionise the power generation sector.

Ajax Fiori launches new concrete equipment range

Revival on Cards?

India is witnessing an improved growth trend in coal mining, as Coal India Ltd (CIL) is aiming an output of one billion tonne by 2020. CIL has earmarked a capital investment of Rs 57,000 crore, as part of the road map for one billion tonne target, with a planned capex of Rs 8,500 crore in 2017-18.

SDLG unveils Tier-IV Final wheel loader at BICES 2017

SDLG launched one of its most environmentally friendly wheel loaders at the 2017 Beijing International Construction and Machinery Exhibition & Seminar (BICES) in China. The SDLG L959F is the company?s newest Tier-IV final wheel loader, and it serves as a reflection of the company?s commitment to more environmentally friendly engine technology powering its construction equipment. The new loader will help customers meet the strictest emission standards in regions around the world.

Crushers & Screens| High on Demand

With infrastructure and construction sector on fast-track, especially road sector, aggregate processing has become essential to support the construction activities with a matching pace.

Maintenance Management

After three-four years of economic slowdown, now infrastructure development activities like roads, rail and Metro projects are coming up. It is very challenging to execute projects under these changing paradigms.

Konecranes enter rental market

Konecranes has entered the rental market, offering low- to mid-range capacity cranes for rent as an alternative to buying a crane.

Construction enabler

India is on a fast track to develop world-class infrastructure in the country. Commencing with road sector wherein a construction speed of 40 km a day has already been achieved, plans are afloat to take it to 100 km a day. Similar traction has begun in other construction sectors like canals and more will follow.

Equipment Selection | INFORMED DECISIONS

Modern construction and mining activities in India need to be expedited with utmost focus on the highest possible productivity, operational excellence, emission compliance, safety and best-of-class economy. Over the past decade, the market for such equipment has substantially matured resulting in the equipment selectors mooting innovative and prudent ideas while selecting the most suitable equipment fleets commensurate to their company objectives and philosophies.

SELF PRIMING PUMP

Alfa Laval LKH pump range, is an efficient, versatile and hygienic self-priming pump. It uses a combination of air-screw technology and advanced design to meet the most stringent requirements in a range of hygienic industries including food, dairy, beverage and home-personal care.

Self Priming pump

Alfa Laval LKH pump range, is an efficient, versatile and hygienic self-priming pump. It uses a combination of air-screw technology and advanced design to meet the most stringent requirements in a range of hygienic industries including food, dairy, beverage and home-personal care.

Large Miners Forward

While the global mining industry is on the decline, India is witnessing a reverse trend. Many international mining equipment manufacturers are showcasing their products at BAUMA 2016, Germany, in a big way, at a time when Coal India

Spartan?s Customer Meet

Spartan Engineering Industries organised a customer meet in Mumbai under its Sparsh initiative, to bring its new range of machines in front of the customers. Spartan, a leading construction equipment manufacturer in India

Uplifting Future

Advanced material handling and warehousing equipment have a vital role that can help speed up the efficiency of logistics industry. More focus on palletisation and the opening up of retail segment

High-tech Cost-effective Solutions

A technology-driven company with rich expertise in the fields of geotechnical engineering, foundations, and drilling for infrastructure development, Panasia Project Consultancy

Credit demand may pick up in the second half of FY 2015-16

In July 2014, the current government presented its first budget which was predominantly growth-oriented. The announcements made in the budget represented measures to tame inflation and provide a boost to investments in manufacturing and infrastructure sector.

Many German companies plan to invest more in India

An overwhelming majority of bC India exhibitors (79 per cent) expect the economy in the region to improve and to continue growing, says Rajesh Nath, Managing Director, VDMA India Services.

For India, the risks and rewards are great

Looking at the infrastructure industry, a main driver behind construction equipment, India is ranked 7th in terms of risk vs reward, says Benjamin Duyck, Market Intelligence Analyst, Association of Equipment Manufacturers (AEM).

Synthetic Lubes Seminar

The second edition of the National Synthetic Lubes seminar reinforces technological superiority in synthetic lubricants. Following the success of the first National Synthetic Lubes Seminar, Shell Lubricants

Emerging Trends

Introduction of GST, more focus on palletisation, and expected opening up of retail segment are expected to boost the demand for forklifts.

Rentals will be the solution for the future

Knowledge and skill upgradation are vital and that is where Quippo plays an important role. We continuously devote time to upgrading knowledge; training is a continuous activity in our organisation.

Bulk material handling and processing solutions

Bevcon Wayors offers new generation innovative conveying systems for bulk material handling and processing solutions for core industries like power, steel, cement mining and minerals.

Our cranes have some of the best safety features.

Demag is probably the only company among crane manufacturers with the largest field force. Our services include installation and commissioning, warranty and post warranty services and support through parts, says Vidyakant Miraje, Business Head - Process Cranes, Demag Cranes and Components (I). Excerpts from the interview.

An upward trend

Over the years, the manufacturing sectors have made remarkable progress in integrating the latest and most advanced systems of material handling into the manufacturing process. There is a perceptible shift towards third-party logistics providers, increased focus on integrated supply chain

Govt to upgrade 5 roads via PPP model

Haryana government would adopt Public Private Partnership (PPP) model to develop five major roads in the state, the state Industries and Public Works Minister Randeep Singh Surjewala said. The five roads identified for the project are Bahalgarh chowk Meerut-Sonepat road, Panipat-Sonali Road SH-16, Kond-Moonak-Salwan-Assandh road till MDR border, Palwal- Aligarh Road and Karnal-Meerut Road, he said after inaug

Expert committee on underground coal mines

Coal Ministry will set up a committee of experts to compile a long-term strategy on capital investments and a technology upgrade to increase production from underground coal mines belonging to Coal India (CIL) and Singareni Collieries Company (SCCL).

Innovative turnkey rental packages

Bardai provides turnkey rental packages that help develop, engineer, provide solutions and offers almost immediate parts availability to minimise downtime and maintain maximum productivity.

We have one of the best productivity and fuel consumption figures in the industry

In the global excavator markets today, Hyundai is positioned at Number 5. There are about 11 developing countries and emerging markets where Hyundai holds the largest market share, like Russia, Brazil and some African nations, where Hyundai controls a market share of 44 per cent, says Dheeraj Panda, Head - Marketing & KAM, Hyundai Construction Equipment India

We at Aska strive hard to create a new benchmark in the lighting industry

The platform bC India provides is apt to launch our solar light tower with turbine, the ST-9 (hybrid), a new technology introduced by us which is highly economical and utilises the natural resource available in abundance in India, says Ashish Garg, Director, Aska Safety Devices.

Steadily chugging ahead

Even though the road sector in India continues to face multiple challenges, a strong pipeline of projects supports long term prospects. Around $180 billion investment is earmarked for the road sector, which is the highest ever investment for any Five Year Plan, and this should have a very positive impact on the construction equipment industry. The prime factor favouring the growth of the road equipment industry is the sheer scale of work still to be done in this sector.

We partner with our customers to deliver world-class innovative crane solutions

Konecranes invests heavily in R&D to bring new techn?ologies and inno?vations to the market. World??wide, we service close to 400,000 equipment and have developed a rich knowledge base of crane operations and maintenance,

Low fuel consumption, high productivity and lesser maintenance cost is Hyundai's USP

Hyundai excavators operate on CAPO (Computer Aided Power Optimisation) technology whi?ch offers better matching of hydraulic circuitry with engine torque curve,

Complete Foundry from Disa

The Disa Match 20/24 and MB 500 metal belt tumblast machine now in India. Disa India, a world-leading foundry machinery manufacturer, and Wheelabrator, the world?s Number One surface preparation technology manufacturer,

Cost-effective Modular Coal Preparation Plants

The new concept in designing modular coal preparation plants offer the advantages of gradual build up on beneficiation capacity. As coal mining projects have long gestation period of around seven to eight years for underground mines and four to five years for open cast mines to reach peak production.

We provide turnkey rental package for our clients

Our wide range of super long reach excavators, of which there are no equal in terms of reach and digging depth, are highly valued and in great demand, says Murad Jetha, Director, Bardai Group. In an exclusive chat with EQUIPMENT INDIA, Jetha speaks about the rental industry.

Engines of growth

Studies show that at present as per 2010 figures, diesel engines in India emit a total of 357,959 tonne of pollution. If we were to use diesel engines with lower emissions, then this figure would be reduced to 116,325 tonne. Couple this with the fact that there are over 400,000 diesel powered vehicles being produced every year and 250,000 diesel powered gensets

Equipment Rental: Rentals Moving Up

Out of $ 2.3 billion construction equipment sold in India, just seven per cent is sold to rental companies, which is low compared to the global average of 50 per cent; in China, it is approximately 35 per cent, in USA 65 per cent and in Japan, it is 80 per cent.

TIPL's New Nerve Centre

With a major focus on offering innovative and value-added solutions to the customers, TIPL, the wholly owned subsidiary of TIL, has launched a 50,000 sq ft, state-of-the-art Component Rebuild Centre (CRC).

We aim to be market leaders in wheel and static plants

We have currently launched the modular plants from Terex MPS and intend to add more offerings in this segment over the next few months, says Jaideep Shekhar, Director of Sales & Marketing, Asia, Terex MPS.

Mobile & Moving Up

Out of the total market for the CE industry, the share of crushing and screening equipment (CSE) is pegged at 13 per cent - that is, US $ 30 billion across 2012-17; what's more, the CSE market is projected to grow at the rate of 15-20 per cent YoY for the next five years.

Equipment consultants will be a major requirement of the future

The Bureau of Indian Standards (BIS) can play a vital role in standardising construction equip?ment to improve quality and safety of products.

Cummins poised for growth

Cummins Inc expects significant sales and profit growth in 2011 and beyond as it takes advantage of a number of long-term global economic trends and the recovery of key US markets.

EcoMAX is optimised for JCB construction equipment to offer maximised fuel efficiency

The JCB engine ecoMAX is on the same platform as the JCB Dieselmax, the record breaking engine that powered the car which holds the world's land speed record, says Vipin Sondhi, Managing Director and Chief Executive Officer, JCB India. 0 - - 16072 14 188 2011-06-01 00:00:00.000 Equipment India Volvo-Srei BNP Deal

Volvo India and Srei BNP join hands to launch Volvo Financial Services.

Volvo India and Srei BNP Paribas have announced the formation of an alliance to launch a private label retail financing programme branded as Volvo Financial Services in India with immediate effect. This will strengthen the Volvo Group's ability to provide full service financial solutions to Volvo Group customers in India and customers of its joint venture (JV) with Eicher Group, viz, VE Commercial Vehicles Ltd (VECV). With the launch of the Volvo Financial Services offering, the Volvo Group will accelerate its business growth in India across all of its products by packaging its product offerings with financing through its alliance with Srei BNP Paribas. By engaging the two companies at the sales, marketing and operations levels, the alliance will allow both companies to address new growth opportunities by developing co-branded financing programmes and services for customers of the Volvo Group and Srei BNP Paribas.

Being a part of the Volvo Group, Volvo Financial Services in India is aimed at building a reputation for attractive customer financing services to the external and internal customers of the Volvo Group and VECV. Volvo Group's brands include Volvo trucks, Volvo construction equipment and Volvo buses, while VECV's brands include Eicher trucks and Eicher buses. Srei BNP Paribas is India's largest construction equipment finance company and with this alliance, Volvo Financial Services will leverage Srei BNP Paribas's expertise of over 22 years coupled with a network of 87 offices across India, strong underwriting capabilities and an asset base of over Rs 12,000 crore to increase its penetration and give complete financing solutions to customers buying Volvo products in India.

John Rakocy, President of Volvo Financial Services for Region Asia/Pacific comments, ?After a comprehensive review process, we are excited to ally with Srei BNP Paribas for Volvo Financial Services in India. The Volvo Group and its distributors will benefit from leveraging Srei's expertise and financial capabilities in credit underwriting, funding, and sales and marketing effectiveness through a private label programme under the Volvo Financial Services name. We look forward to continued growth within this key Asian market.?

D K Vyas, CEO, Srei BNP Paribas, says, ?We have a partnership approach in all our businesses and we are happy to join hands with Volvo Financial Services, in their endeavour to provide financing solutions to Volvo Group customers. We have been financing Volvo Group products since their entry into the country but through this formal association, we will complement each other's strength and further cement our relationship. Srei BNP Paribas' dominant leadership in this business, consistency, innovative financing products, and its distribution should help the Volvo Group increase its market share and participate in the India growth story.?

Volvo Financial Services is the global finance arm of the Volvo Group. The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services, and is the world's leading producer of heavy-diesel engines (9-18 litre). Volvo Financial Services was formed in 2001 and is headquartered in Greensboro, North Carolina, USA. The company has assets of over $14 billion, more than 1,200 employees worldwide, and conducts business in over 40 countries across Asia-Pacific, Europe and the Americas. Volvo Financial Services provides a full range of financial services for the truck, construction equipment, bus, marine, and aerospace industries. The primary brands that Volvo Financial Services supports are Mack Trucks, Renault Trucks, UD Trucks, Volvo Trucks, Volvo Construction Equipment, Volvo Buses, Volvo Penta, and Volvo Aero.

The alliance will strengthen the Volvo Group's ability to provide full service financial solutions to Volvo Group customers in India.

The invention of backhoe in the early 50s by Joseph Cyril Bamford changed the face of construction across the globe. From a historic perspective, the growth of backhoe loaders in India has happened at the cost of mini excavators and mobile excavators; mainly on account of the first mover advantage. The affordable price and multi-application versatility made backhoe a popular machine. Even though the global trend shifted towards specialised equipment, in emerging markets like India which is slowly moving towards the same trend of usage of specialised equipment and attachments, backhoes still dominate the sale.

As per the data collected by Equipment India, India is the world's largest backhoe loader market with over 30,000 units expected to be sold in FY 2011-12. This momentum is expected to continue with the increased spending on infrastructure development. No wonder, many domestic and global OEMs have entered this market segment, and have augmented the capacity. JCB invested during the downturn to upgrade its backhoe facility to the world's largest backhoe manufacturing plant with a capacity to build 100 machines per shift. Escorts is doubling the capacity for its Digmax; Mahindra & Mahindra which has recently forayed into this segment has built a capacity of 2,000 units per year; Terex has a production capacity of 2,500 machines per annum, that can be ramped up as per demand; ACE also is in the process of doubling the capacity to over 4,000 units per year. As per inputs, the first quarter of CY2011 has seen a robust growth of 40 per cent over last year. Though the market has seen a slight slowdown due to the implementations of BS III regulations, the overall backhoe market will grow by another 15 per cent this year.

But how long backhoe market will be able to dominate?

Three different reasons: firstly, the shift towards specialised equipment for speicalised jobs; secondly, the wheel loader market is getting more and more aggressive, especially below 10T class; thirdly, the high possibility of an expanding market for mini excavators.

As Indian government is pushing for higher investments for the development of infrastructure, more and more global players are establishing their base in India to exploit the opportunity. This has led to tremendous competition and benefitted the customer with enhanced quality and better performance on the offer. One noticeable trend is the India-centric design of machines, and efforts put into the continuous improvement of machines as per the feedback from the customers. Major players extensively use consumer insight and feedback to further develop the product which is built to withstand India's rough terrain and heavy usage patterns. In addition, most of the players offer products with cutting-edge features using the latest vehicle systems and technologies at prices that are within the reach of the mass market. More importantly, there is more
and more emphasis on service, and no wonder, most of the OEMs are investing on service and spare network to reach the customer as fast as possible.

The earthmoving segment is driving the overall industry with strong demand emanating from the government-backed infrastructure projects. The segment is poised for an unprecedented CAGR of around 18 per cent during FY 2011- FY 2014, as per a research report from Putzmeister.

The outlook for India's construction industry remains largely unchanged between the financial years of 2010-11 and 2011-12 and the growth tandem would remain same till fiscal 2015-16. This relatively high growth figure indicates that there are a large number of projects available to the infrastructure companies throughout the country in the forecasted period. The research sees certain sectors, such as the power and airport sectors, presenting more growth opportunities than others. However, there are significant risks preventing the realisation of returns for these projects and these risks are inhibiting upside movement to our construction growth forecast.

The latest statistical data from India's Ministry of Statistics and Programme Implementation show that the real growth for the Indian construction industry reached 9.6 per cent year-on-year for April-September 2010. While this suggests that there is upside potential to the FY 2010-11 construction forecast, The report is maintaining the projections due to persistent concerns about the sector's ability to filter investment through the intended projects. Among these concerns, India's nebulous business environment remains the most pertinent.

The forecast

Even though India is experiencing a slower growth rate due to the current economic downturn, it is expected to rise again within the next three to four years thanks to its resilience to the world markets' conditions. The growth rates forecasted for the construction industry sectors will exceed the overall GDP growth. The commercial and industrial construction sectors are growing at an annual rate of approximately 10 per cent, compared to 6-7 per cent for residential construction.

Spike in construction industry growth

Rapid growth in the construction sector is creating enormous sales potential for manufacturers of construction machinery. The increase in sales of earthmoving equipment by 17 per cent and construction vehicles and mining equipment by 53 per cent demonstrates the immense potential for all sectors of the construction industry.

Construction equipment

World's seventh largest country by area and second biggest by population makes India one of the most dynamically growing and still, largely untapped construction equipment (CE) industry. The country has witnessed massive investment in the construction industry from both public and private enterprises in recent years. Multi-billion dollar investments made in constructing roads, ports, power plants, telecommunication sector, urban infrast­ructural developments, etc, have paved the way for construction equipment dem­and to grow substantially in recent years.

According to research report from Putzmeister, the CE industry in India has witnessed consistent double-digit CAGR growth over the past few years. The global economic slowdown had its moderate effects on the industry, but it regained growth momentum in FY 2010 and showed positive year-on-year growth. Particularly, the earthmoving segment is driving the overall industry with strong demand emanating from government-backed infrastructure projects. The segment is poised for an unprecedented CAGR of around 18 per cent during FY 2011?FY 2014.

Over the last 3-4 years, various new entrants made inroads in the Indian CE industry. Some of the biggest names belong to Japan, the US and Korea. Besides, a number of domestic companies are either expanding their domestic capacities or diversifying their product portfolio. With the emergence of new market players and expansion plans underway, the industry is expected to become more competitive and fragmented. However, these new capacities will find their home quite comfortably in the domestic market amid growing mechanisation and proposed large infrastructural projects.

The report provides profound research and rational analysis of the Indian CE industry. It provides information/statistics of all prominent market segments including earthmoving, material handling, concrete equipment and road building equipment. Analysis of past, present and upcoming industry trends provide balanced market intelligence on the concerned industry. In addition, we have covered key industry players and their business description to examine industry's competitiveness and growth potentials.

As per the report, there are five trends that will shape the evolution of the industry and highlight the imperatives to realise this opportunity. Of these, four are growth opportunities ? investments of $750 billion in infrastructure development; the increasing dominance of price-and-value-focused customers; deeper engagement of global equipment manufacturers in India; and increasing opportunities for exports. However, the trend of increasing competition from product imports from other low-cost countries like China could potentially challenge the industry growth and is forced that players need to address proactively.

Conservative estimates suggest that 'as usual' growth will create a market of $8 billion by 2015. But a concerted push by the industry and government alike could result in an additional $4 billion opportunity, equally split between exports and the provisioning of India-specific products.

A study says, for the industry to achieve its full potential, players need to embark on three strategic initiatives ? (i) introduce India-specific products that include introducing low-priced multi-purpose equipment to attract new customers and to increase mechanisation in important areas, adding features to products that make suitable for use in India and launching new applications and products for missing applications; (ii) improve cost positions to better deal with the onslaught of competition from LCCs; and (iii) pioneer efforts to boost exports in areas like engineering and design services that leverage India's technical prowess.

In addition, companies need to pursue four growth-enabling initiatives to expand the market. These include enhancing the quality, delivery and price of after-sales services to increase the share of service revenues from 2 per cent of total revenues to the global average of about 8 per cent; addressing key gaps in financing to catalyse latent demand particularly in rural areas and small towns; expanding dealer and channel network coverage to address buyer fragmentation and quality and proactively strengthening supplier capacities and capabilities.

Construction equipment players have a unique opportunity to help realise the potential of this sector and, in doing so, garner their share of the $12-13 billion revenue potential.

The Indian economy:

? More than EUR 140 billion invested in energy and infrastructure.
? Construction-industry growth rate is higher compared to the overall growth rate in India.
? Ten per cent expected annual growth for commercial and industrial construction (2010-15)
? Indian economy quickly regains the momentum.

Industry trends:

? Investment of $750 billion in infrastructure.
? Increasing dominance of price-and-value-focused customers.
? Deeper engagement of global OEMs in India.
? Increased opportunities for exports.
? Increased competition from product imports from LCC.

Infrastructure investments:

? India has one of the world's biggest purchasing power and ability to attract large investors from all over the world. Investments in various infrastructure sectors are projected to reach impressive EUR140 billion in 2010:
? EUR 100 billion for the energy sector.
? EUR 17-21 billion for road construction.
? EUR 5.7-7 billion for ports
? EUR 10.7-14.3 billion for airports.

?Mahindra & Mahindra has entered the construction equipment business with Mahindra EarthMaster backhoe loader. In the next 3-4 year, Mahindra Construction Equipment division would have full range of construction equipment,? says Kairas Vakharia, Senior Vice President and Business Head, Mahindra Construction Equipment Business. Excerpts from the interview.

Mahindra is the latest entrant in the highly competitive backhoe segment. How do you look at the present scenario of backhoe market?
India is the world's largest backhoe loader market with over 30,000 units expected to be sold in FY 2011-12. This momentum is expected to continue with the increased spending on infrastructure development. However, the backhoe loader customers have become more demanding in terms of getting more value from the investment made in their equipment. Mahindra intends to make a strong foothold in BHL market by offering Mahindra EarthMaster with a host of benefits/features which are unheard of in this industry. This will help our customers break-free from old technology and enable them to ?rise'.

Tell us about the response Mahindra has received after the launch of EarthMaster?
There has been a tremendous response for Mahindra EarthMaster. We have been doing demonstrations of Mahindra EarthMaster pan India and there is a very positive wave among customers regarding the various unique features it offers to customers. Some of the features that are most appreciated are high fuel efficiency of Mahindra DITEC engine, Remotecare, crawler excavator like hydraulics, fatigue-free joystick operations, stylish cabin and two years of unlimited hours warranty. All of these features are new for backhoe loader customers.

What is the existing manufacturing capacity for backhoes?
The Mahindra EarthMaster is manufactured at our state-of-the-art facility at Chakan, Pune. The current production capacity of the plant is 2,000 units per annum which can be easily ramped up.

Which segment contributes to the maximum share for backhoes in India?
The hirers constitute the largest segment with more than 50 per cent market share.

What differentiates Mahindra from competition?
Mahindra's Product Development team has utilised extensive consumer insight and feedback to develop this product which is built to withstand India's rough terrain and heavy usage. In addition, the product offers cutting-edge features using the latest vehicle systems and technologies at prices that are within the reach of the mass market.

Are these products complying with emission norms Bharat Stage III?
The Mahindra EarthMaster is powered by Mahindra's DITEC Engine, a compact 3.3-litre engine which delivers best-in-class 83 HP (Ps) power. The DITEC engine is packed with the latest technology for minimising emissions that meet BS3 and also USA Tier III emission norms, the most stringent in the world. The construction of the DITEC engine combining Direct Injection (DI) with Turbo Charger and Intercooler (TCI) delivers over 10 per cent fuel savings per hour.

Tell us about your strength in providing training and service network in India?
The company has put in place a dedicated sales and service network to cater to its construction equipment customers. This will include over 200 dealer sales, service and spare part outlets, over 200 service vans to reachout to the customers at their sites, 12 area offices, one central parts warehouse and 10 regional parts warehouses to supply dealers and a call centre supporting nine languages. We also have a dedicated training set-up for training machine operators/technicians.

?Terex backhoes perform faster while digging and loading at lower operating costs, with durability through quality and technology innovation,? says Vijay Sharma, Executive Director, Terex Equipment. Excerpts from the interview.

What is the demand-supply scenario for backhoes in India? What is Terex's market share in backhoes, and growth envisaged?
We don't see any demand-supply gap in India at present. The first quarter of CY2011 has seen a robust growth of 40 per cent over last year. However, since the implementations of BS III regulations, the market has seen a slight slowdown. Still, we believe that the overall loader backhoe market will grow by another 15 per cent this year. We strongly believe that this trend should persist for another couple of years before stabilising henceforth. In terms of value, there does not seem any major jump as Indian customer still believes in value for money concept and is still not ready for paying higher for enhanced features in machines. As far as Terex is concerned, we are growing at a steady pace and hopefully, we should be able to achieve double digit market share in another couple of years.

The various factors, which will enable this sound growth for coming times, are mainly government's continuous focus on development of infrastructure by pumping and inviting more and more investment, better credit facilities and preference of Indian customer for Made in India brand of backhoe loaders.

Tell us about the range offered by Terex?
The new range of backhoe loaders ? TLB 740S with 76-hp Kirloskar engine and TLB 844S with 90 hp Kirloskar engine - is a result of continuous up-gradation in innovation and technology. In compact loader segment, we manufacture HEMAN 175 skid steer loader, having option of 65-hp or 80-hp engine, making us the only local manufacturer in this space in India. This machine, which has more than 50 standard attachments, is more like an engineering marvel. Further enhancing its product offering to Indian customers, Terex recently introduced RL 4000 light towers, which addresses the requirement of construction houses and builders to work efficiently even during night time.

Tell us the unique features of backhoes offered by Terex?
Terex backhoes perform faster while digging and loading at lower operating costs, with durability through quality and technology innovation. Highlights of this product are fuel efficiency through unique Smart UC Hydraulics. These products have been developed in India for Indian market from application and maintenance points of view. These machines are almost completely indigenous. Tougher, stronger structural parts such as boom and dippers, heavy-duty stabilisers with adjustable wear pads have been introduced to achieve longer service life than competition in Indian tough applications. Improved protected hose routings and other hydraulics are designed in segments to achieve lower replacement costs and longer uninterrupted working.

What is the existing manufacturing capacity for the backhoes?
At present, we have a production capacity of 2,500 machines on annual basis. However, foreseeing the tremendous potential and opportunity available in future, we may plan to ramp up our capacity to address the increasing demand for our products.

Which segment contributes the maximum share for backhoes in India?
According to our estimates, major chunk of the industry is contributed by first-time user/first-time buyer segment. This segment accounts for nearly 50-55 per cent of the total industry followed by retail/repeat buyers (25-30 per cent) and corporate customers (15-25 per cent).

What is the rental scenario for these products?
The rentals are more or less stagnant over the least 2-3 years. This is mainly due to increased number of machines available in the market. However, the rentals are also dependent on the topography of the region, ie, in hilly terrains; the rentals are always 20-25 per cent higher than the rentals in plain areas. We also consider it very seriously that with the entry of big rental companies, the rent would go up in near future.

What is the return on investment on a backhoe?
At present, due to enhanced competition among backhoe owners, the rentals have been stagnant in spite of increase in owning and operation cost over the last few years. Hence, it has affected the return on investment for these machines. Nowadays, we can safely assume that an average customer is able to recover his investment in 3-3.5 years, which used to be 2-3 years in the past.

Tell us about the attachments offered along with backhoe?
Nowadays, the main attachments being offered with backhoe loader machines are rock breaker, 6-in-1 shovel, ditch cleaning bucket, and trenching bucket etc.

How do you look at the competition in this segment, and what differentiates Terex from competition?
As Indian government is pushing for higher investments for the development of Indian infrastructure, more and more global players are establishing their base in India to exploit the opportunity. This has led to tremendous competition and benefitted the customer with enhanced quality and better performance on the offer. Terex is also on the threshold of becoming a serious player in this space. We offer world-class technology at the customer's doorstep and that too at an affordable price. Our products comprising backhoe loader, skid steer loader, wheel loader and light tower are continuously setting higher benchmarks in terms of reliability and productivity. More and more customers are becoming our repeat buyers on account of value for money proposition products are being offered.

Are these products complying with emission norms Bharat Stage III?
Of course, all our products are BS III compliant. Perhaps it is a blessing in disguise for us as our machines have become more fuel-efficient and environment-friendly.

Tell us about the footprint created in India. What are your plans on expanding dealer network, service stations etc?
Terex Equipment, even though being a new entrant in Indian CE industry, has been able to establish a vast distribution network all across India and neighbouring nations. The company has 49 committed dealers who sell, service and provide parts round-the-clock with the help of a workforce of over 600 trained engineers and technicians. However, as we see a spurt in demand for Terex products in coming times, we are continuously enhancing our distribution network which includes adding branches to existing dealerships as well as appointing new dealers at strategic locations.

To what you attribute the success Terex has registered so far?
The success of Terex in India can be attributed to the two main factors ? excellent work environment at our workplace and indelible trust of our customers. We recognise that to accomplish our goals, we need diverse perspectives and inclusive work environments that enable us to attract, develop, motivate and retain the very best people. We believe that being a great place to work means creating the kind of workplace where great people can do great things.

Diversity at Terex is about respecting and embracing more than our tangible differences, like gender, ethnicity, national origin and race. We value diversity of thought, experience, culture, background and style. It is those unique characteristics that make each Terex team member a vital contributor to our competitive advantage. We celebrate that each and every one of our team members brings something unique and beneficial to our workplace. Due to these attributes, we are able to roll out the best machines in terms of reliability and performance which eventually wins the trust of our customers.

Bearings of Growth

As Indian infrastructure develops and the industry modernises, there are tremendous opportunities opening up for the bearings industry.