Manufacturers are meeting the new challenges by automation processes and putting advanced technologies at work. This has allowed them to upgrade their manufacturing facilities and produce high-tech machines which meet global quality standards.

The Infrastructure sector is the key driver for the Indian economy and is largely responsible for propelling the overall development of the country. India has emerged as the fastest growing major economy in the world. The government is focused on infrastructure development in the country and has taken a lot of policy initiatives to ensure creation of world-class infrastructure.

Despite various risks and challenges, the government has given top priority for infrastructure development, which has led to tremendous rise in sales of equipment, especially earthmoving, road building, material handling, air compressors, concrete manufacturing, transporting and placing equipment, crushing & screening.

Adding to this, the government has introduced many new and innovative models like hybrid annuity, toll, operate & transfer, and ‘ease of exit’ policy for developers. It is striving to strengthen the PPP framework and is finding solutions for hurdles in land acquisition and environment clearances. There is a significant push from the government in the infrastructure sector.

“The government reiterated the need to open up economy further through necessary reforms in order to attract more investment to fill up the infrastructure deficit in the country at a faster pace. There is a strong need for new and innovative structures and credit enhancement mechanism, which reduce the risk in infrastructure project,” says Pankaj Udeshi Asst. General Manager Procurement, Supreme Infrastructure India Ltd.

Reviving Demand
The Construction Equipment market in India exhibited a good growth in the last one decade. Despite witnessing a decline during 2012 to 2015, the demand bounced back thereon. The upcoming business scenario across sectors appears buoyant in the near future. The centre will spend Rs 100 lakh crore on infrastructure upgradation over the next five years, as per the Union Budget 2019-20. Vivek Hajela, General Manager and Head- Construction Equipment Business, Larsen & Toubro Ltd, said, “This will mean a massive amount of construction work yet to be undertaken in the country, which would create a large opportunities for various types of construction equipment in the infrastructure development . According to ICEMA Report, ‘Building India@75’, sales are estimated to reach 1,23,000 units in FY 2020-21.” With political stability, sharper focus on infrastructure development and improvement in the economy, key focus on current running projects, new project announcements are likely to pick up. Recently, the finance minister Nirmala Sitharaman announced BS-IV vehicles to remain operational entire life and enjoy 15 per cent additional depreciation, total 30 per cent till March 2020 this is good news for automobile industries. “As per the guide lines of finance minister bank must shift benefit of rate cuts to all borrowers including corporate customer and this monetary transmission may create better demand of machineries,” said Udeshi.

According to Puneet Vidhyarthi, Brand Leader, CASE India, the construction equipment demand peaked to around 30 per cent percent in the ‘Year-of-construction’ 2018. Due to the earlier allotted projects and completion of 40km/day target, the roads and highway sector has performed exceptionally well. “As construction equipment market highly depends on the construction happening in the country, the demand for CE has been high and is expected to further grow with greater number of projects,” said Vidhyarthi.

Among all earth moving equipment, backhoe loaders are flourishing well in India and have a very bright future in the country. At present, it comprises 65 per cent of heavy earth moving equipment segment. “Based on the activities the requirement for earthmoving equipment’s have increased many fold. For construction of roads (flexible & rigid) of various categories and as decided based on design requirements and geographical parameters. Volume is directly proportional on the Kms of Roads and length of bridges being constructed across the highways,” said Ratan Lal Kashyap, Sr Vice President –Procurement, G R Infraprojects Ltd

Tech transformation
The Indian equipment sector is undergoing sweeping changes not just in terms of higher demand amid the government’s resolve to build world-class infrastructure, but also due to the digitalization of manufacturing for rolling out highly advanced equipment. Due to the projected growth rate and government’s ‘Make in India’ initiative, most OEMs (Equipment Manufacturers ) are upgrading their manufacturing facilities in an innovative way by using automation and advanced technologies and producing high-tech machines that meet global quality standards. “This new wave of manufacturing is ably supported by technical innovativeness can be termed as new-generation infrastructure equipment, towards which India is moving fast,” says Kashyap. Almost all types of equipment will witness growth though the market will continue to be dominated by the six most popular products: backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compaction equipment, and wheeled loaders.

Recently, Komatsu introduced its new digitally enabled 35 Ton Hydraulic Excavator model with advanced ICT Komtrax system — PC300LC-8M0 and PC350LC-M0 models. This comes with strengthened undercarriage and reinforced arm & boom. These models have already received acceptability in the granite, quarry, marble Industry which is looking for efficient machines and higher profitability. “Our road machinery business is doing well with the high performance soil compactors and asphalt compactors manufactured by LTCEL (L&T Construction Equipment Limited). The introduction of new models such as pneumatic tyred roller, hydraulic paver and skid steer loader holds good promise in the road sector,” said Hajela.

As construction equipment market highly depends on the construction happening in the country, the demand for CE has been high and is expected to further grow with greater number of projects.
Puneet Vidhyarthi, Brand Leader, CASE India

Based on the activities the requirement for earthmoving equipment’s have increased many fold. For construction of roads—Flexible & Rigid—of various categories and as decided based on design requirements and geographical parameters.
Ratan Lal Kashyap, Sr Vice President –Procurement, G R Infraprojects Ltd

There is a strong need for new and innovative structures and credit enhancement mechanism, which reduce the risk in infrastructure project.
Pankaj Udeshi Asst. General Manager Procurement, Supreme Infrastructure India Ltd.

Massive amount of construction work yet to be undertaken in the country, which would create a large opportunities for various types of construction equipment in the infrastructure development
Vivek Hajela, General Manager and Head- Construction Equipment Business, Larsen & Toubro Ltd