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Construction : Editorial | May 2016 | Source : Equipment India

Northward Bound

After a lull in the market in 2015-16, the construction equipment industry in India is looking northwards with some 46,000 units expected to be sold in 2016. Global sales of construction equipment declined more than 10 per cent in 2015 compared to 2014. According to a market research report, more than 46,000 units could be sold in India this year, compared to 39,000 units sold in 2015. By 2019, the Indian market could account for a sale of more than 80,000 construction machines.

With the major allocation for rural development in Budget 2016-17, funds being made available at Gram Panchayat levels and the Swachh Bharat Abhiyan, the tide has turned and the prospects are still improving for the backhoe loader industry, driven by the development of rural roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY). The Budget has increased allocation for the Indira Aawas Yojana (IAY) and PMGSY that have the potential to further improve equipment demand. The budget of PMGSY was substantially reduced during 2012-13 and 2013-14 at revised estimate (RE) stage. During 2014-15, an amount of only Rs 14,200 crore was allocated to PMGSY. In 2015-16, Rs 14,291 crore was allocated to PMGSY which was substantially enhanced to Rs 18,291crore at revised estimate stage. In the recent Budget, Rs 19,000 crore have been allocated for PMGSY for 2016-17. The funds would be released by the Centre and state in a 60:40 ratio in all the states except the hill states and North-eastern states where the pattern would be 90:10.Our Cover Story on Backhoe Loaders captures the emerging opportunities for this entry level machine in the rural infrastructure and waste management segments, which is given a major thrust in the government´s programmes. Read our Cover Story to know more about the trends and scenario in this equipment category.

The ´Jack of All Trades´, skid steer loaders, are still not evolved in India - in spite of the vast possibilities of their versatile applications. According to some industry inputs, the global skid steer loader industry is expected to touch revenue of $5 billion this year and developed economies like the US and Europe sell more than 40,000 units annually. The market in India for the year 2015 was 500 units and is expected to grow to 1,000+ units by 2020.

Our Feature explores the opportunities for this cute little equipment in the Indian market.

The demand for high-capacity concrete pumps is growing with more high-rise buildings, flyovers, dam projects, wind turbine foundations and other infrastructure projects coming up. Read your favourite Focus on Concrete Pumps to know more. Bauma 2016, the largest trade fair in the world, recently concluded in Munich on a positive note. With 3,423 exhibitors from 58 countries, about 580,000 visitors from 200 countries, and higher than expected order activity, this mega event exceeded all expectations. I was personally present at Bauma 2016 to witness and experience the global innovations in construction, building material and mining machines and construction vehicles and equipment.
We bring out an exclusive report of Bauma 2016 in this edition.

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Please write to: shankar@equipmentindia.com

 
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