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The Indian excavator market stands at around 25,000 machines
During the recently-held JCB Excavator Day in Pune, Deepak Shetty, CEO and Managing Director, JCB India, speaks on the current market share of excavators in the Indian construction equipment industry and JCB’s position within it.
JCB India inaugurates new dealership facility in Delhi-NCR
JCB India inaugurated Pasco Earthmovers LLP as its new dealership in Delhi-NCR. Offering JCB India’s full Product Portfolio, the newly inaugurated state-of-the-art facility is set to provide an unmatched customer experience in the Delhi-NCR Region.
The demand for advanced technologies is growing
Senthil Balamanickam, Chief Executive Officer, Suryabala JCB, speaks on the emerging equipment types that the company foresees in the near future.
JCB India inaugurates new dealership facility in Delhi-NCR
The dealership is spread across 40,000 sq. ft
“We got into dealership with JCB for eight districts in Tamil Nadu.”
Senthil Bala, Chief Executive Officer, Surya Bala JCB, speaks on the current market trends and demands for CE in the regions they represent.
Going forward, digital technology will play a key role
Deepak Shetty, CEO and Managing Director, JCB India, speaks on the key demand drivers for backhoe loaders in India, and its dealership and product service
Automation at the Forefront
Companies use automated material handling equipment because it increases productivity and reduces waste, which results in significant cost savings.
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.
Going forward, digital technology will play a key role
Deepak Shetty, CEO and Managing Director, JCB India, speaks on the key demand drivers for backhoe loaders in India, and its dealership and product service.
The Versatile Workhorse
Telehandlers can perform a wide range of tasks in various industries.
JCB unveils hydrogen engine
JCB publicly unveiled its new port fuel injected, 4.8L inline-four hydrogen combustion engine (448 ABH2)—the company’s zero-carbon emissions solution for construction and agricultural equipment—at the Conexpo 2023 show in Las Vegas as part of the International Fluid Power Exposition (IFPE).
Bringing sustainability to the fore
JCB has continued to make concerted efforts to conserve and optimise the use of energy.
JCB India launches three new excavators
These machines will be built at JCB India’s state-of-the-art factory in Pune
Demand for reliable material handling products is fast growing
Deepak Shetty of JCB India speaks on the market for telehandlers in India
Demand for reliable material handling products is fast growing
Deepak Shetty of JCB India speaks on the market for telehandlers in India
JCB India, Karnataka Bank tie-up for equipment financing business
The tie up arrangement with JCB India Ltd is expected to boost the lending avenues under the Bank’s MSME portfolio.
JCB India inaugurates new dealership facility in Bhopal
JCB India inaugurated Surana JCB’s new dealership facility in Bhopal. Offering JCB India’s full Product Portfolio, the newly inaugurated state-of-the-art facility is set to provide an unmatched customer experience in Bhopal.
JCB India inaugurates Indimo facility in Navi Mumbai
JCB India Limited has inaugurated its new dealership Indimo JCB in Navi Mumbai which covers an area of over 14000 sq ft.
$5.13 Bn Opportunity!
Growing at a CAGR of 9.4 per cent, the Indian backhoe loader market is likely to touch $5.13 billion from $1.77 billion in 2021.
JCB India inaugurates Indimo facility in Navi Mumbai
JCB India Limited has inaugurated its new dealership Indimo JCB in Navi Mumbai which covers an area of over 14000 sq ft.
JCB India inaugurates Surana, JCB’s new dealership facility in Bhopal
Offering JCB India’s full product portfolio, the newly inaugurated state-of-the-art facility is set to provide an unmatched customer experience in Bhopal.
JCB machines are getting smarter
Innovation and Sustainability have always remained critical to our operations, and we continue to introduce products that significantly limit their impact on the environment. The JCB 19C-1E is the industry’s first fully-electric excavator in India and is integral to JCB’s ‘Road to Zero’ initiative, a programme that we have been working on for the past few years. The machine has been tested extensively and has various built-in features that enhance safety and performance. With Zero Emissions and low noise, this new machine is ideal for Infrastructure development in Urban Areas and Indoor working,” said Deepak Shetty, CEO and Managing Director, JCB India
JCB launches new range of CEV stage IV compliant wheeled CE
JCB India launched its all-new range of CEV Stage IV compliant wheeled construction equipment vehicles. The launch of these machines makes JCB India the first company in the industry to have brought in the CEV Stage IV emission standards across its range of wheeled machines.
JCB launches new range of CEV stage IV compliant wheeled CE
The range includes the 3DX Plus and the 4DX backhoe loaders, the VM117 soil compactor, the 530-70 and the 530-110 telehandlers with engines complying with the new emission norms. For bulk handling, three new wheeled loaders, the 433-4, the 437-4 and the 455-4 were also launched with new engines.
We have pioneered integration of digital tech in our machines
As the Indian market matures, global best practices are making their way into the Indian material handling industry. There is an increased focus on safety and productivity on work sites which presents us with the opportunity of introducing products with the latest and state-of-the-art technology in India.
JCB’s range of CEV stage IV backhoe loaders
India’s leading manufacturer of earthmoving and construction equipment, JCB India flagged off its new range of CEV Stage IV backhoe loaders at its Headquarters at Ballabgarh (Delhi-NCR). The range includes the new 3DX Plus, the 3DX Xtra, the 3DX Super and the 4DX to meet a wide range of applications for customers.
JCB launches its range of CEV stage IV backhoe loaders
The range includes the new 3DX Plus, the 3DX Xtra, the 3DX Super & the 4DX to meet a wide range of applications for customers.
Innovation has been cornerstone of JCB’s operations
In our exclusive, Deepak Shetty, Deputy CEO & Managing Director, JCB India Limited, tells us how the construction equipment industry in general and JCB in particular have been emerging through the year of the pandemic.
We are leveraging digital technology in our products and services: Jasmeet Singh
JCB has pioneered the integration of digital technology in its ‘Intelli’ series of construction equipment. Jasmeet Singh, AVP, Corporate Communications & Corporate Relations, JCB India, shares more.
We have pioneered the operator training programmes
JCB India through its 15 centres has already trained close to 30,000 operators, thereby creating employment and entrepreneurship amongst the youth.
TECH-MOVES
With the government plans to invest Rs 102 trillion in infrastructure development in the next five years, the demand for construction equipment will be immense.
JCB India, CSIR-CRRI jointly develop pothole repair machine
JCB India showcased its all new pothole repair machine at the Central Road Research Institute (CRRI) team in New Delhi in presence of officials from DDA, MCD, NDMC, SDMC, EDMC, NRIDA, NHAI etc.
Appetite for dust control systems is growing
Spraystream describes itself as a leading global player in dust control, cooling and misting systems to optimally address issues of industrial odour and dust.
JCB to set up sixth factory in India
JCB will invest Rs 6.50 billion in a new plant in India as the company prepares to celebrate 40 years of manufacturing in the country.
JCB opens new dealership in Kathmandu
Presently, over 350 Livelink enabled JCB machines are successfully working in the country. The technology comes as an optional feature on JCB products.
JCB India supports Kerala with Rs 10 million relief package
JCB India Limited made an employee contribution of Rs 2.8 million for relief and rebuilding work in Kerala. The cheque made in favour of the Kerala Chief Minister?s Distress Relief Fund was handed over to EP Jayarajan, Minister for Industries and Sports, Kerala by the JCB India team. This is in addition to the 30 JCB machines which have already been deployed in the districts of Palakkad, Malappuram, Ernakulam and Alappuzha and are helping the local administration with the rebuilding of public in
JCB India opens new dealership facility in Kozhikode
JCB India and its dealer, Kadoor JCB inaugurated a new dealer facility in Kozhikode. Spread over 15,000 sq ft, this facility has been set up with an aim to provide a unique experience to JCB customers for all their equipment requirements related to Sales, Service and JCB Genuine Parts.
Excavators Excel
Driven by the infrastructure development activities in the country, hydraulic excavators recorded a sharp growth in 2016 compared to the previous year. The positive trend is continuing this year also with a 26 per cent growth in the first four months.
Back on Growth Path
Given its versatility and mobility, backhoe loader finds great use at almost every construction site, both urban and rural India. This multi-purpose machine continues to perform a variety of tasks at sites and is used for digging, dosing, levelling and lifting activities.
The Complete Infra Equipment Partner
JCB India demonstrated the performance of its vast equipment range, announcing its commitment towards a complete infrastructure equipment partner for project development.
Gearing up for the next level
Says Mathur, ?It is the government agencies who are asking for the implementation of Euro-V and VI (norms).
ON THE CLOCK!
Material and earth movements are the major work content of all infrastructure developments and mining activities. Front-end loaders, backhoe loaders, dozers and application-centric equipment as options for the users to choose from to suit individual requirements.
Close to 30,000 JCB machines are connected to JCB LiveLink
We have set up a global manufacturing hub in India. JCB machines are not just designed for India?s emerging markets, but are exported to over 65 countries. What also sets us apart is our world class product support network with 63 dealers and 650 outlets.
Versatility Brings in Productivity
A multi-utility equipment helps in achieving maximum result with minimum investment.Use of such equipment is gaining traction among the users. For decades, a backhoe loader was considered as the most versatile utility equipment by Indian customers.
Back on Track!
The Indian mining and material processing industry, along with other bulk material handling operations like coal loading or bulk handling at ports, and aggregate processing in roads, is already on a fast track growth trajectory in India, thereby driving the demand.
The Earth Movers and Shakers
As a consequence of the excavation activity gaining momentum, earthmovers like front-end loaders, crawler dozers, traxcavators and other earthmoving equipment are registering a CAGR of 15-18 per cent. Since the Indian economy is reviving, these equipment are also finding emerging markets in other sectors as well.
backhoe loaders:flat Growth
Backhoe loaders are passing through a challenging time for the past few years. Market is registering a flat growth with some indications that it is shrinking.However, now there is optimism among the leading players in the backhoe industry
Wheel loaders - Optimising Productivity
Cycle time is a critical success factor in all bulk handling applications. Ramifications of high cycle time even extend to bulk handlers securing business. Wheel loaders are extensively used bulk handling tools wherein high productivity is of essence.
Steering the Growth
Skid steer, the little cute machine, is steadily carving a niche amidst the Goliaths of construction equipment space. Such a versatile piece of machine when clubbed with a variety of attachments, still has not got its due yet.
Our aim is to provide machines that are fuel efficient, productive and safe
Amit Gossain, EVP-Marketing, Business Development and Corporate Affairs, JCB India: JCB skid steers are highly suited to work in confined areas. It comes with pressure-sealed cab and low-effort controls, which helps in reducing operator fatigue.
JCB Excavator provides best-in-class productivity and fuel efficiency.
In the excavator segment, JCB offers an unmatched range starting from 8T operating weight (JS81) to 22T operating weight (JS 220LC), to serve the plant hirers, earthmoving and quarrying customer base. At Excon 2013, JCB introduced the JS30 mini excavator and JS360 LC which like all other JCB excavators, offers excellent fuel efficiency, says Vipin Sondhi, Managing Director & CEO, JCB India. Excerpts from the interview.
JCB constantly keep upgrading the machine to meet the growing requirements.
The JCB backhoe loader continues to be the most widely used equipment in India and we constantly keep upgrading the machine to meet the growing requirements of our customers, says Vipin Sondhi, Managing Director and CEO, JCB India.
Customer satisfaction is the principal force guiding all JCB initiatives
JCB will continue to enter the market with revolutionary, fuel- efficient and world class products to meet the market and customer requirement, says Amit Gossain, EVP -Marketing, Business Development & Corporate Affairs, JCB India. Excerpts from the interview.
A-Plant to buy 800 JCB machines
JCB has won a major order for more than 800 machines from plant hirer A-Plant.The ?27 million deal is a big boost for JCB factories and covers micro, mini and midi excavators and 240 Loadall telescopic handlers.
JCB manufactures products which are robust, custom built and highly fuel-efficient.
JCB offers a world class vibratory soil compactor VM115 and a recently launched 9 T Tandem Roller VMT 860, which are specifically used for road projects. These machines are built specially for Indian roads and are amongst the best at compaction, says Amit Gossain, VP - Marketing & Business Development, JCB India. Excerpts from the interview.
JCB Machines at 2014 World Cup Project
A fleet of JCB machines is hard at work on the other side of the world, helping kick off preparations for the 2014 World Cup.The machines backhoe loaders and Loadall telescopic handlers - have been pressed into service at the Governador Pl?cido Castelo Stadium in the city of Fortaleza, Brazil.
JCB offers the widest range of backhoes covering all applications and terrain
Our range of backhoe loaders are equipped with the fuel efficient and reliable ecoMAX engine, in-house durable axles and transmissions, best- in- class hydraulic forces, all of which result in superior loader and excavator performance, long lasting structure, says Amit Gossain, Vice President Marketing & Business Development, JCB India. Excerpts from the interview.
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
JCB inaugurates new dealership facility
JCB India receantly announced the opening of its Bilaspur dealer - Dynamic (CG) JCB's facility. This facility has been made as per the JCB Corporate Identity norms and is equipped with JCB standardized systems to provide a one-stop solution for its customers.
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.
Construction , Update , Portal , Magazine , Equipment India , 2011 , June , 2011 , Volvo India , Srei BNP , Volvo Financial Services , retail financing , Volvo Group , Eicher Group , John Rakocy , D K Vyas , Greensboro , North Carolina , USA 0 2011-06-16 11:27:34.333 22 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. 1 - - 16073 14 94 2011-06-01 00:00:00.000 Equipment India WILL THE DOMINANCE CONTINUE?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.
Construction , Update , Portal , Magazine , Equipment India , 2011 , June , 2011 , Vijay Sharma , Terex Equipment , BS III regulations , infrastructure , investment , backhoe loaders , Kirloskar engine , engineering , Smart UC Hydraulics , ditch cleaning , government 0 2011-06-16 12:30:21.273 22 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.
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