Expect to see double-digit growth

Kobelco Construction Machinery Co. Ltd. and Indian subsidiary, Kobelco Construction Equipment India Pvt. LTD. (KCEI), attended bauma CONEXPO INDIA 2018.

The machines displayed this edition were different from last time.Five machines including the 20 tonnes and 50 tonnes Excavator Models of the latest Generation-10 series, Excavator with long reach attachment and Building Demolition machine were displayed. The company also launched SK350DLC-10 – the manufacturer’s latest machine designed exclusively for the demolition sector, according to Vikram Sharma, Advisor (India & South Asia), (Ex- Managing Director), KCEI. A Mini Excavator, the 3.5 tonnes SK35 SR, slated for a launch in the near future, was also to be seen.

How was 2018 for your business in terms of product performance?
In terms of numbers, we have grown by about 30 per cent and were unfortunate that our production capacity had limitations. So, there were many months, where we lost opportunities too. We are now working on the third phase of expansion in the factory. By next year, we would be ready and should grow by around 25 per cent. The CE industry is growing well and this is very encouraging. We have new focuses like Mining applications. Therefore, we have displayed the new 50-52 tonnes machines, which we will focus for coal mining, and other mega earthwork operations.

Currently, volume-wise, road construction is the biggest driver for the industry. In the wide range of excavators, the 20-tonne category, which is mostly used for road works, contributes about 69 per cent of the total market. Mining has its own place, and although the numbers are less but value application is large. Overall, road and mining are the two areas witnessing good activity levels.

What makes your products standout from the rest?
Our excavators are one of the most fuel efficient and provide high productivity to the users. The machines are designed with advanced technology, such as mechatronics, electronics and sensing, etc. We have taken extra care to make the operator cabin comfortable, safe, sound/dust-proof, air conditioned, etc. We also pay attention to ergonomics, allowing the operator to adjust his posture for the most efficient working with least fatigue during long hours of operations. These things distinguish our machines from those of others.

What is your view on dual fuel usage notified by road ministry for CE?
There are hybrid machines, which use fuel as well as electric power (Batteries) for running, so it cuts down on fuel consumption. These machines are available with Kobelco, though not yet introduced in India because hybrid technology is very costly and we doubt whether Indian customers would like to buy at that price. Having said that, there is a lot of focus among stall manufacturers, making more and more eco-friendly machines. The wheeled equipment of CE is already following BS III and would be going to BS IV from the next year followed by other equipment. There is certainly a move towards greener machines.

What is your outlook for 2019?
Elections are due in 2019. If stability remains, we should continue to witness good growth, certainly in double digits. It could swing from 10 per cent to 15-18 per cent, depending upon what situation emerges, but we do see overall growth over the next 4-5 years.

Wheeled equipment of CE is already following BS III and would be going to BS IV from the next year followed by other equipment.
Vikram Sharma, Advisor (India & South Asia), (Ex- Managing Director), Kobelco Construction Equipment India Pvt Ltd