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Construction : Feature | January 2016 | Source : CW-India

EXCON 2015

The expo this year exceeded expectations with an overall record in terms of area, number of exhibitors, visitor turnout, and business generated.
According to a report released by ICEMA, the current market size of the construction equipment including backhoe loader, concrete mixers excavator is around $2.8 billion. Further, the Indian construction equipment industry is expected to grow to $5 billion by 2019-20.

This growth and optimism was evident at EXCON 2015, which was held in the grounds of BIEC in Bengaluru in November. With the theme on ´Make India - Building Infrastructure, Building the Nation´, the expo attracted exhibitors, including a huge number of foreign companies, to participate in this mega event. As Piush Goyal, Managing Director, Kelley Material Handling Equipment India, and Member, Excon Steering Committee, shares, ´Excon 2015 exceeded expectations with an overall record in terms of area, number of exhibitors, visitor turnout, and business generated. This was the biggest-ever Excon we had so far with maximum exhibition area. There were overall 810 exhibitors including 271 foreign exhibitors and eight country pavilions. The total visitor turnout stood above 31,000, which is an all-time record. Excon 2015 also generated a business of worth Rs 600 crore, which is also a record in the history of Excon.´

Over a hundred new products were launched during the exhibition by various equipment manufacturers, reflecting the buoyant mood of the industry. Some of the notable launches were by JCB, Schwing Stetter and XCMG combine; Larsen & Tuobro Construction Equipment along with Komatsu and Scania Trucks; Volvo Trucks, VE Commercial Vehicles, Tata Motors, Tata Hitachi, Daimler India Commercial Vehicles, Puzzolana, Caterpillar and Doosan Infracore India. Other recognised industry leaders like Atlas Copco, Kelly Material Handling, KYB Conmat, Kobelco, LeeBoy, Ajax Fiori, Palfinger, Ammann Apollo, etc, had also put up impressive displays of their product ranges. The event was replete with live demos of equipment and visitor entertainment sessions.

CW spoke to leading manufacturers to delve deeper into what the construction equipment industry has to offer in the years to come, their expectations and the company´s launches at the expo.

"In India, we are the market leader for mobile cranes and crawler cranes. A bit different to China, India seems to appreciate high technology solutions, and that is our strength. We also run a factory in Pune where we make in India for India. Yet all is based on the know-how we bring in from our European hubs. We are ready into supply but the demand has to come by. We offer a certain range of machinery, which includes big machines of earthmoving equipment to start mining operations as well. We provide concrete plants and truck mixers. For construction and other application, we offer special cranes and mobile cranes. Another distinct area is the maritime, material handling equipment and harbour cranes. We also offer gantry cranes and have off-shore cranes for the windmill industry and ship cranes for ships to off-load themselves. This is more or less a wide and successful range of equipment.´ - Dr Gerold Dobler, Corporate Communications, Head of Online-Communication & Construction Trade Press, Liebherr-International Deutschland GmbH

"We are delightful to announce our partnership with Tata Hitachi, where the company has approved seven of our products - an entire range from oil to transmission to grease and gear oils. And, Shell is the only energy company to make it to the list of top innovative companies globally. Over 50 per cent of the operating cost of construction equipment is fuel. So, if we can offer a lubricant that helps in reducing fuel consumption, this would be of great help for end-users. As a company, construction is one of the focus sectors for us globally along with mining, power, general manufacturing, agriculture, etc. In our technology leadership, we have three buckets - innovation, application and partnership. Partnership is when we work closely with the OEM´s, and application, when we apply the product in the field.´ - Akhileshwar Jha, Vice President-Technical, Lubricants, Shell India Markets Pvt Ltd

"The mining industry is beginning to recognise that in order to improve productivity, strategies need to be implemented with an operations-wide approach. By combining the use of high-quality lubricants and an effective oil and equipment analysis programme from ExxonMobil, mining operators can look to achieve a competitive advantage in their operations in challenging environments, helping to maximise productivity and reduce the fuel consumption potential of their mining machinery and equipment. As a corporation, we have invested to the tune of about $4 billion in R&D in the last five years. And if you look at the workforce of ExxonMobil, which is around 75,000 people across about 150 markets, almost 20 per cent of our total workforce, which is close to about 16,000 people, are involved in day-to-day activity of scientific development, technology development, technology research and technical service. This is what keeps us in the forefront of technology.´ - Shankar Karnik, General Manager-Industrial, ExxonMobil Lubricants Pvt Ltd

"JCB showcased 25 Made in India machines at Excon 2015. All our products are manufactured with the philosophy of ´one global quality´ and our Made in India products are exported to over 60 countries. JCB has invested over Rs 2,000 crore since we have been here. We talked of indigenisation, which means our suppliers are making in India. All of this really adds to the value chain and then you become part of the global supply chain for your suppliers and end products, your volumes pick up as well and all of that is Make in India. It can lead to a lot of positive synergy moving forward. Also, projects that were stuck are now being fast-tracked through policy changes. Construction sector in the year 2016 will witness small growth with 2017 gaining momentum and 2018 really gaining momentum because the long gestation projects will move forward.´ - Vipin Sondhi, Managing Director & CEO, JCB India Ltd

"We finance the entire infrastructure equipment space, starting from earthmoving to metal preparation to road equipment. We have a market size of 30 per cent, which means every third piece of equipment is financed by us. We are growing as per the industry and market trends. The incremental growth to us is coming from our new verticals such as IT equipment financing, medical equipment financing, rural equipment, etc, but the growth in construction mining equipment is coming along as per industry trend. We would recommend the mining contractor to take the equipment on lease and not leverage their balance sheets like what road contractors did when the economy downturn happened. In this direction, we are offering leasing solutions. Going forward, we are looking at increasing our market share from 30 per cent to 40 per cent. For this, we have decided to build some more risk mitigates in our model.´ - Devendra Vyas, CEO, Srei BNP Paribas

"We are market leaders for compactors with a 35 per cent market share. Being new entrants in the graders segment, our market share is about 10 per cent, but we aim to be among the top three by next year in this segment. On the backhoe loaders, we are No. 2. Our entire range of backhoe loaders and compaction equipment are now made in India and we started exporting these last year to selected markets. We have about five training centres across India. Two areas that we are focusing on are maintenance and operations to ensure that customers get access to better service. In the last three months, we have seen some green shoots in the market, especially in heavy lines. So be it compactors, graders or excavators, some of these have grown well, which in a way, reflects the initiatives taken by the government.´ - Ajay Aneja, Head-Sales & Exports, Case New Holland Construction Equipment (India) Pvt Ltd

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