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Towering Ahead!

The rapid expansion of the real-estate sector and the emergence of high-end infrastructure projects are driving the demand for tower cranes.

Is the money flowing again?

Tricky times call for strong strategies but the long term prospects are bright for financiers with staying capacity, finds Charu Bahri. Demand for construction equipment finance has been down for the last few years.

Dedicated infra financing vehicles are need of the hour

Eight months in office, the Central Government has done well to improve the business sentiment. Several measures aimed at easing the way of doing business have been taken. Things have started looking up for the infrastructure sector too.

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,

Equipment Finance Companies are Optimistic on Sales Growth

Bangalore, 23 November 2013: As with any product that requires a large one-time capital expense, financing is a good way for the construction equipment industry to spark demand and acquire new customers. In 2011, India?s earthmoving and construction equipment (ECE) financing industry was valued at Rs.23,000 crore according to the report on ?Roadmap for Realising ECE Industry?s Long Term Potential? released at CII EXCON 2013 - South Asia?s Biggest Construction Equipment Event.

ECB proposal for funding local construction equipments

Agency reports suggest that some NBFC-AFCs (asset financing companies) want Reserve Bank of India (RBI) to allow External Commercial Borrowing (ECB) norms for funding domestically manufactured construction equipment. Recently, the central bank allowed NBFC-AFCs to avail ECBs for funding only imported equipments

Hits & misses

Even though the recent Budget left much to be desired, the initiatives announced in it and the measures taken outside it, together are expected to boost the demand for construction equipment (CE). To our surprise, the Budget was non-committal on the reduction of import duty for critical equipment and machinery.

We aim to increase asset size by 65 per cent over the previous year

Fastest response time, large distribution and collection net?work coupled with high risk appetite and complete geographic, customer and asset classes' inclusion gives as an edge over competition in retail segment financing, says Pratap Paode, Chief Executive Officer, SEFC.

SP Equipment at Work in Frankfurt

An SP 4800 stationary pump and the SPB 35 and SPB 30 separate placing booms are hard at work, pumping and placing the concrete in the TaunusTurm, in the heart of Frankfurt.Frankfurt, the city in Germany with the most high-rise buildings will soon be one high-rise richer.

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

Waiting for action

The infrastructure segment and sales figures for construction equipment have witnessed a major slowdown in 2012. On a calendar year basis, the market has dipped by 10-15 per cent, primarily on account of slowdown in allocation of new contracts, various statutory clearances on execution side, funds flow, governance and environmental issues in mining segment and real estate slowdown.

Higher dosage needed, Doctor!

The recent reduction of repo and reverse repo rates by 50 basis points each (from 8.5 to 8 per cent) for repo rate and from 7.5 to 7 per cent for reverse repo rate) is seen as a welcome development as this initiative may spark off fresh investments,

Budget Quotes

The Budget 2012-13 aims at sprucing up the country?s infrastructure and readying it for higher growth. Stalwarts from the construction equipment industry respond to the budget.

Srei registers 75% growth

Srei Infrastructure Finance has recorded a 65 percent rise in its consolidated total income and 31 percent growth in its consolidated disbursement during the quarter ended September, 2011 to Rs 588 crore and Rs 4,401 crore respectively as compared to same quarter performance last fiscal.

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

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