India’s construction and infrastructure sectors are rapidly increasing. The upcoming elections in 2024 will ensure the rapid growth of infrastructure. If this pace of growth continues till 2030, the Indian construction equipment manufacturing industry may surpass America’s two lakh crore rupees record. In 2018, India overcame Japan to gain the third rank in this industry. The Indian construction equipment manufacturing industry, in 2022, witnessed revenue of ₹1 lakh Bn.

The analysis below briefly discusses the predicted growth figures in the sustainable building and infrastructure equipment industry. In addition, we examined the prospects presented by the government’s infrastructure priority for constructing roads, bridges, highways, and allied segments.

Opportunities associated with the $1.4 trillion investment in roads and bridges 

The road and bridge segment will be significantly impacted by the $1.4 trillion allocated for infrastructure expansion. The construction of new roads and bridges and the rehabilitation and modernisation of existing infrastructure are projected to increase because of this significant expenditure. Moreover, the Budget 2023–24 has also boosted infrastructure development by increasing capital expenditure.

According to Sunil Puri, Managing Director – India & SAARC Operations, CASE Construction Equipment, capital investment outlay has been boosted by 33% for fiscal year 24, reaching a total of 10 lakh crore to drive rail, road, military, housing, water, and metro projects. This has the potential to enhance transportation and logistics. He also expects this would lead to employment creation and a rise in demand for excavators, dozers, and backhoes, boosting sales.

From a business perspective, the government’s policies include significantly expanding its investments in infrastructural development, including roads, railroads, ports, airports, affordable housing, and urban planning (smart cities), among other things. According to Amit Bansal, Director of Sales & Marketing, BCP Division, Caterpillar India, this will lead to future technological advancements while considering the demands of youthful, tech-savvy clients.

Demand for efficient CE in rural and semi-urban development projects

With the focus shifting to developing rural infrastructure, including roads, houses, electrification projects, irrigation facilities, and other infrastructure, the need for construction equipment is also increasing to create such infrastructure. Jalaj Gupta, Business Head, Commercial Vehicles Business Unit, Mahindra & Mahindra Limited, highlights that it has led to the growth of many indigenous construction equipment manufacturers in the country. Of all the names, one company that has contributed significantly to the rural infrastructure development in the country is Mahindra Construction Equipment (MCE).

Kranthi Kumar Ravuri, Managing Director of VIBRANT CONSTRUCTION EQUIPMENT PVT. LTD. discusses the potential available to asphalt plant owners. “Due to the announcement of large road projects across India by both the Central and individual State governments, there is a rise in demand for all the connected items for this sector.” Because so many greenfield projects are announced, the contractors must acquire all of the equipment, which raises the needs.” Offering financial viabilities for contractors.

Gaurav Soni, Senior General Manager for Business at KK Gupta Construction Ltd., discusses a few locations where promoters and contractors enhance financial scalability. Adoption of cost-effective technologies such as prefabricated, modular construction, and automation; efficient project management practises such as lean construction; lowering CapEx through equipment sharing and rental services; alternate financing options; and active collaborations are increasing the contractors’ financial scalability.

Innovations in mining and tunnelling segments

1. G. Sakthikumar, Managing Director of Schwing Stetter India, noted the massive infrastructural developments in the mining and tunnelling industries. “The concrete has to be sprinkled every time a tunnel is built.” So, for such purposes, we have sold over 100 units with a diesel engine, and for the first time, we are presenting an electric version that was created and built in India by an Indian business.

Technology advancements

The only way to cut overall costs and be efficient is digitalisation, says Harsh Pareek, Regional Sales Director, India and SAARC, Trimble Solutions. The solutions offered by Tekla, the flagship software from Trimble, can help increase the efficiency of construction operations and improve project outcomes, which in turn can lead to a reduction in costs.

Need for all-steel radial tires in India 

The government is on a mission for the development of Indian infrastructure. All of these developments need the use of equipment, and all of the equipment necessitates the use of tyres. “And our Earth Max Series all-steel radial tyres are intended to satisfy the specified criteria for construction equipment utilised in an infrastructure project. Therefore, I believe specialised tyres and makers like BKT have a bright future,” says Ashok Chhajer, GM-OE of Sales at Balkrishna Industries Ltd.

Sustainability commitment of the CE industry 

Sustainability is not a modern phenomenon; it combines excellent business and management practices that govern carbon emissions, and toxic waste stream discharges into the physical environment. Sustainability extends beyond exhaust emissions to include equipment, fuels and lubricants, maintenance facilities, mobility, and many other elements of equipment functioning.

Companies across the CE and allied segments are widely contributing to global green practices. “Armix Machinery is now one of the few companies that manufacture green planetary mixer in India ranging in size from 15 to 240 cubic meters”, shares Manoj Kumar Pillai, Managing Director of Armix.

Coming to the Oils and Lubricants business, GS Caltex has promoted sustainability in its industry through its fuel-efficient and eco-friendly product range. Adding further details, Rajesh Nagar, MD & CEO, GS Caltex India Pvt. Ltd., mentions their innovative range of Hydraulic Oils and Engine Oils launched at bauma Conexpo 2023. Applications for them include industrial hydraulic applications and excavators, and they can be employed in several contexts.” This product is built using environmentally safe, sustainable Zinc-Free technology. Its extremely high viscosity index will help increase drain intervals and improve fuel efficiency.

The Indian construction equipment sector is confident about mid- to long-term development prospects, owing to the government’s increased emphasis on infrastructure-led growth.

Organisations are indulging in all possible efforts to create and implement sustainability strategies. To accomplish so, a business must promote sustainability as a philosophy throughout the organisation. It has no defined bounds, yet realising its possibilities demands significant work, monitoring, and supervision.

Amit Bansal, Director of Sales & Marketing, BCP Division, Caterpillar India

Infrastructure investments will contribute to future technological developments in India.

Rajesh Nagar, MD & CEO, GS Caltex India Pvt. Ltd.,

Our newly launched Hydraulic Oils and Engine Oils are designed per fuel efficiency requirements.

 

Gaurav Soni, Sr. GM for Business Development-Commercial, at KK Gupta Construction Ltd.

Lowering CapEx through equipment sharing and rental services are adding financial scalability for contractors.

 

Harsh Pareek, Regional Sales Director, India and SAARC, Trimble Solutions.

The only way to cut overall costs and be efficient is digitalisation.