It is important that spare parts selling or distributing centres are opened in more places in each state to improve logistics.

 Today RNS Group has diverse interests in construction, properties, automobiles, manufacture, power, hospitality and education. M R Sampath analyses the current situation and expects the same to be better.

Nothing like position
Talking about India’s position in terms of strategic procurements for infrastructure purchase, Mr Sampath strongly says, “India does not have such a position.”

He adds, “In certain areas, there are 3 or 4 manufacturers or suppliers of quality and reliable equipment especially in aggregate preparation plant and road machinery. Crawler cranes and tower cranes are also well represented. Batching plant has 2 or 3 manufacturers of repute.  However, most of the others are mostly copying existing designs and some are supplying concrete batching plant with imported mixers.”

Availability of spare parts for capital equipment remains a challenge. Commenting on this aspect, Mr Sampath says, “Supply of spare parts and providing proper after sales service is satisfactory only in the case of one or two important corporate firms. Others are below par.”

Need qualified workforce
According to Mr Sampath, “A few firms do have good technical representatives to discuss merits of the equipment they offer. However, most of the other firms have only sales personnel to sell the equipment with very poor technical knowledge of the equipment they are selling. Sales engineers must be technically qualified to overcome this shortcoming.”

Need quality information
Media plays a crucial role in disseminating knowledge-based information as far as modern technologies are concerned. However, Mr Sampath observes, “Publications catering to sourcing of construction equipment, etc. are not sufficiently informative.” He feels, manufacturers and suppliers of small equipment and spare parts and service providers should be adequately represented in relevant publications.

Poor reach
Most companies manufacturing and selling construction equipment have one central source for handling and supplying spare parts. “It is important that spare parts selling or distributing centres are opened in more places in each state to improve logistics. Hospet in Karnataka is now sourcing spare parts for all over Karnataka. Even Bangalore is not represented adequately,” Mr Sampath said.

There is a tendency to use own vehicles to meet transport requirements.  Also, lot more dependence can be observed on private transporters who have quick transit service facilities. “Certain formal requirements regarding sales tax, octrai etc. are irritants and come in the way of fast and smooth logistics,” Mr Sampath comments.

Communication with suppliers
Adequate e-Procurement technology is desirable only with construction firms having all India activities, involving mega projects. Software is used for assessing cost of spares, life of spares etc. and this information helps in future tenders for construction projects.

– M R Sampath,
Purchase Head,
RNS Infrastructure Ltd.