The year 2016 had it usual up and downs, but we feel there has been a correction in the demand and supply estimates of the industry.
– Nirmal Purshotham,CEO, Civimec Engineering Pvt Ltd

  “Construction equipment industry in India has regained momentum and we see a steady pace in the off take of the demand,” says Nirmal Purshotham, CEO, Civimec Engineering Pvt Ltd while speaking about the recent performance of the construction equipment industry. He further added, “The government’s plan to invest in projects through public-private mode in infrastructure and housing for the poor and in the rural sector is resulting in significant construction expenditure driving growth in the industry. The government has stressed on the requirement of equipment of international standards by contractors to qualify for the government tenders has additionally supported the industry.”

Purshotham feels that the equipment manufacturers are now focusing to ensure that their machines contribute to improving the efficiency and productivity of the construction activity. According to Purshotham, the modern day construction equipment focuses on ensuring that the quality of construction meets the mandatory standards besides reducing dependence on manual workers.

A year of competition and fragmenting
Speaking about how the year 2016 has been for the construction equipment industry, Purshotham says, “The year 2016 had it usual up and downs, but we feel there has been a correction in the demand and supply estimates of the industry. The realistic pictures are emerging and we feel that the year ahead not only shows the light at the end of the tunnel, but a smooth road to climb ahead with a lot more clarity.”

He further adds, “On the other hand, the entry of new global players and the existing manufacturers increasing their capacities during the year have seen intense competition and fragmentation of the market segments.”

According to Purshotham, this has scaled up the capacities with the expectation of growth in demand for the machines that have to be assessed very cynically as the manufacturers now have to focus on increasing their sales volumes to cover fixed costs.

CIVIMEC gears up to face the market
Sharing about how the company is preparing to face the market, Purshotham says, “During the last one year, we at CIVIMEC were gearing up to face the market competition. Realising that technology being a key player to garner market and ensure pricing power in the construction equipment industry, we developed strategic partnership with DIECI Srl of Italy who have been in this segment for more than seven decades. Our association with DIECI Srl Italy, to use their technology, supported by their strong product and design features with flexibility to customize them to our domestic requirements has given us more teeth to acquire the market share with confidence.  The competitive edge that technology provided to our competitors would no longer be a differentiator for our customers to look up to our product features.”

On a concluding note, Purshotham says, “The growing awareness among builders and contractors that advance technological features and control systems help them in producing high quality, homogeneous concrete with less dependence on manual errors coupled with the reduction of labour forces, works positively to our advantage.”

Backed by improving business prospects and a healthy demand by high infrastructure spending by our government, the CIVIMEC teams’ outlook for the years ahead is very positive.