EXCON reflects the spirit of CE industry

STC500

deepak_gargDeepak Garg, CEO, SANY India, shares SANY’s journey in India and how important is EXCON in building India’s infrastructural strength.

SANY India was established in December 2002. Since then, how has the Indian construction equipment market evolved?

The Indian construction equipment market has been volatile for the last few years. After an unprecedented four-fold growth in 4 years since 2003, the construction equipment demand in India exceeded 50,000 units for the first time in 2007, but declined by 9 per cent in 2008 in the wake of the global economic crisis and witnessed a further drop of 11 per cent in 2009.

The market recovered strongly with a growth of 45 per cent in 2010 and 22 per cent in 2011, when it peaked at 72,197 units. However, limited access to long-term finance, high inflation, delays in policy decisions and statutory clearances for infrastructure projects adversely affected the sales leading to a market declined by eight per cent in 2012 and a further 15 per cent drop in 2013 to settle at 55,946 units.

The construction equipment industry’s revenues reached to $4 billion by FY14. Infrastructure’s total share in bank funding rose from 3.74 per cent in 2002 to about 10.40 per cent in 2015. It is estimated that total spending on infrastructure would reach $19 billion during FY12-17.
India is the first overseas investment for SANY Group. How big is your manufacturing operations in India, and what are the opportunities you see under ‘Make in India’ theme?
SANY started its sales office in the year 2002 but seeking India a great opportunity SANY signed a MoU with the Maharashtra government in 2006 with an investment of $60 million for setting up a manufacturing unit in Chakan, Pune. It got inaugurated in the year 2009. In 2011, SANY become the second largest player in the concrete machinery. In the consecutive year, it became the market leader in the cranes and also in the concrete after merging with Putzmiester. Today SANY is market leader in the crane business and has become a brand of preference for products like excavator, piling rigs, motor grader, port machinery and concrete equipment. SANY India is today the largest base of SANY Group outside China.
SANY is committed to building India by making in India. It is informed one of the first to make in India way back in 2009. SANY commitment to India way further cementing by an addition investment of $3 billion (about Rs.20,000 crore) in building 2GW of green energy units in India over the next 5-6 years, a move which is expected to aid government’s efforts to achieve its goals in the clean energy sector. The signing and handover of green energy commitment to Prime Minister Narendra Modi towards development of 2,000 megawatt of renewable energy projects with investments of $3 billion for the period 2016-20. Besides generating 4.8 TWh of green and clean power annually, these projects will generate 1,000 jobs and prevent carbon emissions of around 3.6 million tonnes per year.
SANY Group is also looking in to investment in the dry port and pre concast machinery. The Telangana Chief Minister, K Chandrasekhar Rao, welcomed them for their preparedness in investing in the state. The Telangana government signed two MoUs with SANY Group to set up a prefab concrete manufacturing facility and another to implement dry port solutions. The factory will helpful in the construction of flats and proposed skyscrapers. Also to set up two dry ports in the state to offset the lack of seashore this will help in the economy of the state.
What kind of changes and cost savings have your equipment brought into the Indian construction sector?
SANY products are known for best-in-class quality, productivity, reliability and fuel consumption. It reduces the overall cost of ownership through lower fuel consumption and less maintenance cost. Also customers can earn profit through higher productivity and more efficient. Also, SANY product opts for latest technology in the product and in the engine with industry leader machine norms.
What are the key factors that are likely to drive and restrain this market over the short and long term?
Construction equipment can be classified into four groups – earthmoving, road construction, concrete and material handling equipment. Earthmoving equipment is by far the largest group, followed by concrete equipment and material handling equipment.
Key factors which are likely to affect the industry are:

  • Growth pocket: Earthmoving equipment will remain the biggest contributor in terms of value and volume. However, some categories — such as tower cranes and mobile cranes — would grow disproportionately, driven by increased investments in large real estate projects
  • Shift in purchasing criteria: Today, the customer is much more aware about product applications and usage patterns and looks on the basis of total cost of ownership rather than just the upfront price and also looking at equipment’s productivity, operator’s fitness and use. It is expected that the increasing focus on TCO will find more takers among both institutional and retail buyers, which implies that owning and operating cost, fuel efficiency and the availability of long-term maintenance contracts and excellence in after-sales service will be critical purchasing criteria.
  • Technology trends: The entry of global OEMs has led to up gradation in technology-driven product features, such as remote access devices, automatic controls to manoeuvre machines, more efficient (Tier III) engines and cabin air conditioning. These are gaining popularity among customers. The Internet will have deep impact on the industry.
  • Rise in equipment rental
  • Demand for superior service: With rising customer expectations, quality of after-sales service will impact sales of equipment OEMs. Our research shows that for certain categories, customers expect a response in about 24 hours (MTR – mean time to response) and expect repair to take around 72 hours (MTTR – mean time to repair), and they expect at least 90 per cent on-time delivery performance.

SANY is one of the major sponsors of EXCON 2015. What is the dynamics and impact of EXCON on the Indian construction equipment industry in India?
The exhibition, which is the largest in South-East Asia, will showcase the latest advancements in construction equipment engineering with emphasis on latest products, equipment and technology with specific focus on efficiency, productivity, safety, environment protection and construction quality. Also, more than 35,000 business visitors will witness more than 800 exhibitors and 200 plus product launches.

EXCON reflects the spirit of this industry of building India’s infrastructural strength.
What are your objectives behind participating in EXCON 2015?
SANY is dedicated to bring the latest technology and global offering to India. The use of SANY is its superior technology with unmatched customer support. The objective behind participating EXCON 2015 is that to showcase our products which are best-in-class quality, productivity, reliability and fuel consumption.
What products are you going to showcase at the upcoming EXCON?
SANY is a one-stop shop for all the construction solutions. The different products which we are featuring in the EXCON are crawler crane, truck crane, piling rig, motor grader, all terrain crane, reach stacker, different tonnages of excavators and concrete machineries which includes concrete mixer and batching plant model.
Is there any new product you are going to launch at the event? What are the unique features of the product?
We have a series of new products planned for a grand launch during EXCON, especially in the excavator and concrete machinery range.
What surprise we can expect from SANY at EXCON 2015?
SANY presence in EXCON will be the largest ever in the history. Customers will get a unique experience at SANY on it coming venue not just our product but a transformative new benchmark in customer experience. We believe the next gen of this industry will be driven by complete customer 360-degree experience and not just the product or service in location. EXCON will give the customers the platform to experience the same.
In addition, there are some great events planned which will make our beloved clients groove to the best of their mood. Just watch us!

Stall No: Outdoor 8, 9 & 10

QUOTE
“SANY is dedicated to bring the latest technology and global offering to India.”

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