“As in most markets, price is the most dominant factor in India as well.  There is a marginal trend towards features like fuel economy, faster operation, and reliable performance.  The after-sales support is also becoming increasingly important as a purchase consideration,” explained Vikram Sharma, Managing Director and CEO, Kobelco Construction Equipment (India) Pvt Ltd while talking about the current trends in procurement of construction equipment.

Headquartered in Noida, Kobelco Construction Equipment India Pvt Ltd (KCEI) is a subsidiary of Japanese construction equipment major Kobelco Construction Machinery (KCM).

Buying factors
Speaking on the major factors a buyer should consider before making a decision of buying construction equipment Vikram says, “Buying is a decision with significant impact on the overall cost or profitability of any equipment. Depending on the initial price alone, as many buyers still tend to, is fraught with serious consequences.  Some customers have started looking at the total life cycle cost to select the equipment of their choice. This is definitely a more complete assessment of the impact of buying equipment. However, it is not easy to estimate the total cost with reliable accuracy. Machine productivity, reliability of the main components and the availability of proper parts and service support, etc are some of the aspects which a buyer would do well to look at.”

Quality of support is of prime importance
Focusing on the factors driving the procurement decision making apart from pricing, productivity and durability, Vikram says, “The quality of support provided by a company is of prime importance. This is the factor which has an impact throughout the life of the equipment. This is directly linked to machine availability for work.”

Lease or buy?
Stressing on the factors a buyer should consider while determining whether to rent or buy construction equipment, Vikram observes this is a decision which comes up whenever a work is in hand. Some of the considerations are:
• What is the volume and duration of work? If it covers the financing period, it may be better to buy rather than rent. It helps create assets.
• If the requirement is for a short duration, then renting is a better option.
• As renting is usually costlier than owning, the profit margin in the work in hand will determine whether renting is viable or not.
• Availability of reliable equipment is also a factor. Often, the equipments available are the low-cost models which usually consume more fuel and are less productive.

Kobelco’s USP
Talking about Kobelco’s USP, Vikram says, “Kobelco offers great value to its customers. The latest Japanese technology, top-of-the-line productivity, reliable components, a heavy-duty structure and a reliable dealer network across the country make it a preferred choice.”

KCEI has set up a nationwide network of authorised dealers. Now, the company is fully equipped to meet customer expectations in terms of service and parts, through an efficient logistics system, covering over 100 outlets in India and Nepal. KCEI has two main warehouses at Noida and Chennai and has depots at several locations for ex-stock delivery of machines.

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Buying is a decision with significant impact on the overall cost or profitability of any equipment.

Vikram Sharma, MD and CEO, Kobelco Construction Equipment (India) Pvt Ltd