Suretech Infrastructure Pvt Ltd was incorporated in 1990 to offer specialised infrastructure construction and foundation engineering equipment and materials to the building and construction industry throughout Indian sub-continent. Today, Suretech is one of the leading distributors of construction equipment in India. Suretech’s activities include sales, service and parts of new equipment and equipment rentals. Sunil Newatia, Chairman, Suretech Infrastructure Pvt Ltd shares his views on fuel efficiency being the most important buying factor and driving the procurement decision making.

A sluggish market
The Indian construction equipment industry faced a major slowdown during the past couple of years. However, with a stable government in centre positive moves are expected. Speaking on the current trends in the procurement of construction and foundation engineering equipment, Newatia said, “Customers are still apprehensive of investing in CAPEX due to the massive slowdown during that past two years. In reality, market has still not picked up and is not expected to pickup in the near future. However, infrastructure projects are showing signs of getting off the ground and this may kick-start the equipment demand.”

Fuel efficiency, productivity of equipment – major buying factor
As the market conditions are not too favourable, a buyer need to give due attention to the procurement guidelines. While talking about the major factors a buyer should consider before making a decision of buying construction and foundation engineering equipment, Newatia said, “Customers must look at fuel efficiency and productivity of the equipment, rather than price. Unfortunately, the hirers buy the cheapest machine available in the market as their rental rates are not linked to fuel consumption and productivity. An end-user stands to benefit a great deal if due consideration is given to the overall quality of the equipment, rather than just the price.”

Fuel efficiency – the deciding factor
Focusing on what is driving the procurement decision making apart from pricing, productivity and durability, Newatia said, “Apart from pricing, productivity and durability, fuel efficiency is the most important factor. More than 55 per cent of the operating cost is only fuel and thus plays an important role in determining what equipment to go for.”

Buy for long-term, rent for short-term
Drawing attention on factors a buyer should consider while determining whether to rent or buy earthmoving equipment, Newatia adds, “Customers should take into consideration the overall volume of work and the time period allotted for its completion. If the equipment is required for more than 8-9 months, then, it is prudent to buy rather than rent. For short-term need, it is better to rent the machine. However, while renting the equipment, the rental clause must include a cap on fuel consumption and minimum productivity, else, the customers stand to lose by way of much higher per cubic metre cost.”

Suretech’s solutions
Explaining the USP of Suretech, Newatia says, “We do not believe in selling equipment. We believe in providing a solution. We study the customer’s job requirement and then propose the ideal equipment. The equipment we sell are most fuel efficient, most productive and most durable. Furthermore, we are proud to say that our product support is one of the best in the industry.”

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More than 55 per cent of the operating cost is only fuel and thus plays an important role in determining what equipment to go for.

Sunil Newatia, Chairman, Suretech Infrastructure Pvt Ltd