Growth drivers and Mtandt’s roadmap
Continued impetus on industrialisation and infrastructure development along with the rise in demand for warehousing are the key growth drivers for access equipment industry. The proposed smart cities projects and upcoming of industries to develop their manufacturing units suggest a positive outlook.

Policy initiatives such as FDI in retail and implementation of GST will have a positive impact on the access equipment industry. With pre-engineered buildings (PEBs) becoming the preferred choice in industrial buildings and warehouses, the demand for access equipment has been on the rise. Mtandt anticipates a 20 per cent of year-on-year growth for access equipment in future.

The upcoming infrastructure development and development of Tier 2 cities would increase the demand of boom lifts, scissor lifts and scaffolds. A company in such a condition requires having pan India presence. Mtandt has expanded its operations in all directions and geared up to provide rental services to the construction industry across the country.

Latest trend
Increasing level of customisation of the products to suit the business type and needs is the latest trend in the access equipment industry. As the constructions are becoming increasingly complex, the demand for precision equipment is also growing.

Major challenges
Some of the major challenges for the growth of access equipment industry are as follows:
Higher  operational costs: Maintenance, capital burden to stock and carrying the machines to the desired location are some of the challenges under this head.
Logistics: Equipment rental companies are largely depended on transporter for moving machines from one site to another on a trailer. While crossing inter-state borders various documents are demanded. The complex documentation procedure which varies everywhere, imposed entry taxes and Octroi are time consuming and frustrating many a time.

Managing customer needs: Customers’ requirement for access platforms varies as per their needs. Thus, a rental company needs to invest on huge diverse fleet of equipment to match the diverse requirements. This means the cost of maintenance and keeping spares increases tremendously. 

Increased competition: Equipment rental is one of the most unorganised and fragmented businesses in India. There are very few organised players in this segment whereas a number of small rental companies are mushrooming who provides the equipment at an errant price. Such machines are not well maintained and are potentially dangerous to work. Big companies and corporate players still prefer rental partners of repute as safety is of prime importance to them.

Shortage of skilled manpower: Availability of skilled manpower like operators, hydraulic engineers and site supervisor is very less and training unskilled manpower is expensive and time consuming and their attrition remains a point of concern.

USP of Mtandt’s rental division
Mtandt’s considers safety, productivity and convenience as three pillars that define its competitive edge. Some of the competitive advantages are described as below:
Large and diverse rental fleet: Mtandt’s large and diverse fleet allows serving large customer base that require substantial quantities and/or wide varieties of equipment. The company manages its rental fleet utilising a lifecycle approach that focuses on satisfying customer demand and optimising utilisation levels.

Geographic and customer diversity: Mtandt’s customer base is a diverse mix of construction and industrial companies, utilities, municipalities, government agencies and others.

Strong and motivated team: Mtandt believes that its team is among the most knowledgeable and experienced in the industry. The company empowers them, within budgetary guidelines, to make day-to-day decisions concerning branch matters.

Employee training programs: Mtandt provides training and development opportunities to its employees. The employees undergo comprehensive training programs including safety training, sales and leadership training, equipment-related training from suppliers and online courses covering a variety of relevant subjects.

Training of personnel
Mtandt gives highest priority on the training of personnel. Its Managing director Rakesh Modi is trained from France’s Petzl institute and is a regular trainer at several renowned institutes like Castrol, Suzlon etc.

The group offers two legs of training at regular intervals. At Mtandt, the operators undergo a rigorous routine training for the device they have been allocated to. The other employees from the sales who demonstrate the device are also given proper training. Every new product inducted is not straightaway handed over to a novice. Mocks, training tests are conducted by a certified team to ensure proper training.

Hiring and rental of access equipment
The infrastructure sector is a capital intensive segment. Again, operating and maintaining such capital equipment is a shear additional cost and burden to the project developers. Hence the companies prefer to outsource equipment requirement to a rental companies who have technical expertise to operate and maintain them.

Though the hiring and rental business of access equipment is at a very nascent stage in India, many companies prefer to rent the equipment to save on costs.

Also, with “Make in India” initiative, new opportunities are expected. Industry forecasts point to a multi-year up-cycle for equipment rentals, with an ongoing recovery in most of end markets. Customers are increasingly becoming aware about the benefits of renting. Mtandt Group seeks to seize that opportunity and to further expand its activities.