Founded in 1974, Mtandt is a professionally managed group having all India presence – it is the largest AWP rental company of India. Key activity of the group is to provide safe and economical solutions to the industrial and infrastructure segments.
Pradeep Agarwal, CEO & CFO – Mtandt Rentals Ltd told Sandeep Menezes that the construction equipment sector will see a growth of around 15 per cent in the next two years.
Excerpts from the interview:
It’s been six months since the new government has taken over the nation’s reign, how do you foresee the construction equipment industry’s performance?
Actually, I feel it’s too early to measure the performance of the new government. The sentiments are positive, the vibrations and feel is totally positive. I feel that after two years the construction equipment market will have good future.
What is the quantum of expected growth across the construction equipment industry in next two years?
We feel that the construction equipment sector will see a growth of around 15 per cent in the next two years. The sentiment is positive and if infrastructure growth happens like in China then we should be looking at a good growth rate of around 15 per cent.
What will be the main growth drivers for the construction equipment industry in the years ahead?
There has to be investment and focus on infrastructure development. The nation is way behind in terms of infrastructure facilities and things need to become better.
What do you expect from the new government in terms of support for the construction equipment industry?
First of all, the government needs to bring in GST. I feel that GST has to be implemented and interest rate issue needs to be looked into. The issue of legal movement of equipments needs to be sorted out. They are looking into labour issues which are a good sign.
The interest rates have not softened to the extent expected and most construction equipments are purchased on financing mode. Comment.
Interest rates softening will boost demand for construction equipments. But it’s not happened to the extent expected – this does not mean that business will stop. But yes, the softening of interest rates will lead to spurt of construction equipment sales.
The interest rates have not softened but it may soften in next three months. It is bound to happen. The government’s focus is to develop the country, develop infrastructure, and spurt industrial growth – ultimately GDP growth comes from these sectors only.
We are facing a shortage of trained equipment operators and technicians nationwide. Comment.
We have our sister concern – The Academy of Safe Work Practices to work at heights. Here we impart training to work at heights. Every month we train approximately 30 to 40 people. There is no shortage of manpower but yes there is shortage of trained manpower – it is everybody’s problem.
The government has been pushing with its ‘Make in India’ campaign. Comment.
Earlier we were importing machines from Germany but now we also manufacture equipments in India. We also take care of environmental issues while manufacturing our products. Our company strongly believes in the idea of ‘Make in India.’
We are trying for technology transfers so that more machines can be made in India. We have started a facility for manufacturing smaller machines and three years down the line may also start manufacturing the bigger machines in India.
Going forward, tell us about MT&T’s capacity expansion plans?
We intend to go for continuous growth in India. We will develop our capacity for aluminum scaffold within the span of next one year. We are not looking at exports currently since we want to first cater to the Indian market. In the years ahead, our company will continue in its endeavor to bring new technologies and machines to India.
We have targeted a revenue growth of 100 per cent within the next three years for MT&T as a company in India.