Komatsu provides excavating equipment whereas L&T provides hauling units. So, there is an absolute alignment of thoughts between both the companies without any competitiveness.

Hemant Mathur,
General Manager & Head-CEB, Larsen & Toubro Ltd

 We would like to maintain the market share in the range of 18-20 per cent and a growth of 15-20 per cent CAGR, said Hemant Mathur, General Manager & Head-CEB, Larsen & Toubro Limited while speaking about the growth of L&T. Excerpts from his interview with Subhajit Roy:

What will be the focus of L&T’s Construction Equipment Business in 2017 especially in the area of product innovation?
In the Construction Equipment Business, we have two portfolios to deal with. In one hand, we are the exclusive distributor of Komatsu’s world-class construction and mining equipment in India. On the other hand, L&T designs and manufactures its own range of equipment for road construction. During the past one year, we have introduced wheel loader and two models of vibratory compactors. The third model of vibratory compactor will be commercially launched by March 2017. Seeing the upsurge in road building industry, we would like to launch 2 -3 indigenously developed new products.

Could you give us more information on the upcoming products?
Our future products will be for skid steer loader and paver finisher segments. The products are conceptualised and designed with latest technology having very unique specifications that are ideally suited for the Indian conditions. The products will be integrated with the best technical competence that we have.

Today OEMs are focusing more on increasing fuel efficiency, productivity and safety. What’s your take on that?
Absolutely! We work with Komatsu which is the second largest construction equipment manufacturer in the world. It is also the world’s largest manufacturer of excavators. Their products have inherent features in terms of engine efficiency, longevity, productivity and safety. Also with the advent of telematics, electronic involvement in Komatsu machines is probably the highest in the industry. Komatsu machines are integrated with high technology, sensor based telematics systems to enable remote access of their performance in real time. At Bauma Conexpo India 2016, we have launched Komatsu’s PC 350 excavator having such intelligent machine control. We have also introduced Komatsu’s GD 535 advanced motor grader during this event. Komatsu products come with standardisation of components for across the products that gives a common platform for bring a lot of commonality which results in ease of support. One engine, one power system that is calibrated differently through controllers generates different horsepower at a different speed and torque as per the requirement. We are going to incorporate the same kind of culture even in L&T machines.

Are you doing any kind of customisation with Komatsu range of products for the Indian market?
The way Indians use the machines is different than other countries. Particularly, we are in the habit of using smaller machines for bigger jobs. In case of smaller machines, they are strengthened by toughening the structures. So, in India, we have stronger machines than the internationally designed standard ones. Machine of this type is not made anywhere in the world. On top of that, we have made them rugged for hard applications by strengthening their attachments. Kinematics of the attachments is completely modified to suit applications. For example, our PC 350 excavator having the carriage capacity of 30-tonne can carry up to 45 tonnes.

How do Komatsu and L&T complement each other?
Apart from manufacturing and selling our own L&T-make products, we are the exclusive distributor of Komatsu. In India, Komatsu primarily manufactures hydraulic excavators and mining dumpers and rest of the machines are imported from Japan. Komatsu caters to the construction and mining segment mainly excavation and material handling applications whereas L&T manufactures wheel loaders and vibratory compactors. Komatsu provides excavating units whereas L&T provides hauling units. So, there is an absolute alignment of thoughts between both the companies without any competitiveness. We do not manufacture anything that does not have the approval of Komatsu and we confine ourselves mainly to the Indian market. We also represent Scania for their trucks. Therefore there is the complete synergy within the three companies to offer end-to-end solutions for construction and mining segments.

What is your outlook for the Indian construction equipment industry?
The construction equipment market in India is booming as of now! We anticipate a growth of 30-35 per cent in next one year. We have already seen a growth of about 40 per cent this year and in the last 6 months there has been a growth of 25 per cent. In the long term, the growth of the construction equipment industry can be somewhere in the range of 18-19 per cent over the next 5 years. Speaking about the growth of L&T, we are in pace with the market. We would like to maintain the market share in the range of 18-20 per cent and a growth of 15-20 per cent CAGR.