What is your strategy to expand business for existing product range?
As an organization, Mahindra Construction Equipment is very agile and responsive to the changing needs of its customers. Today we see many customers contemplating over the “To Buy or Not To Buy” question. We at Mahindra have a wide range of offerings for customers at both end of this question. On one hand we have category creating products like the RoadMaster G75 & G90 whereas on the other hand we offer a wide range of products to customers looking for rental services. Weoffer complete range of equipment solutions with technically competent operations and maintenance team serving a wide range of infrastructure sectors like highways, power, telecom, real estate, ports, railways, airports, etc. under our Rental Services vertical. Being at the forefront of providing innovative solutions to the construction equipment industry, our aim is to become leading organized complete equipment solution provider.

With a Pan India presence in over 60 locations, following the best practices of innovation, transparency and service excellence our aim is to partner the infrastructure industry by providing timely and innovative infrastructure equipment solutions thus reducing the risks and enhance profitability of our customers. Mahindra Construction Equipment’s Rental Services vertical is one of the upcoming organized equipment services provider which offers a bouquet of offerings for customers through innovative equipment solutions, extensive footprints across India, large variety of fleet across makes & models, managing fleet equipment across business lines, high quality asset management capability and in depth knowledge and expertise in equipment rental and allied business

Looking at the present scenario what would you advise for procurement of Construction Equipment? Buy it or rent it, why do you say so?
Weather to buy or not to Buy is a decision that each firm or individual has to make for itself or himself. In a way this is similar to make vs. buy decisions that each manufacturing organization has to make on new projects. Buying equipment has its own benefit in the fact that you create an asset and firms can claim depreciation benefits. However, renting of equipment also have a host of benefits of its own like: – Conservation of capital: – it allows the use of capital for other potentially more profitable ventures. Control over expenses: – it provides significant savings over buying thus improving bottom line. New & updated technology: – it makes way for hiring equipment as & when required, updated with new technology. Reduction in down time:- maximum uptime courtesy 24×7 service support provided by the rental operator

Renting equipments also ensures that no large equipment storage areas are required when the machine is dehired. Besides that there is no burden of cost for repair workshop, spare parts & inventory. There are ample savings on manpower & administrative cost since there is no need for mechanics or staff. Equipment tracking is made possible through IT enabled systems. Equipment obsolescence is not incurred. It makes way for better focus on core activities.

Thus by renting, all the advantages of the investments are realized without the burden of ownership.I would suggest each individual to carefully consider these benefits and then make a well-informed decision on what’s best for him.

What are the challenges you see are faced by the industry in dealing with upcoming demand and supply?
From economics standpoint, upturns and downturns are a part of the continues business cycle. While currently the industry is going through a tough phase, the government’s focus on infrastructure development through various initiatives like PMGSY phase 3, Bharatmala & interlinking of rivers are sure to turn things around.

What is your expectation from the industry bodies and policy makers to capitalise the present market?
In India today, while there are a lot of projects that are going on, liquidity is concern for infrastructure companies &contractors. Policies that favour more liquidity in the hands of these infrastructure firms should be looked at.

What is your company’s outlook for 2022?
We are witnessing a very stable government with huge focus on infrastructure development. Although, currently the industry is going through a low phase, we know that its cyclical. I see correction to start by Year 2020 and if all goes well we can expect to see similar kind of growth that we witnessed in 2016 to 2018 period and who knows the industry can even reach to every highest industry figures by 2022.

While currently the industry is going through a tough phase, the government’s focus on infrastructure development through various initiatives are sure to turn things around says Manish Arora, Business Head, Construction Equipment Division, Mahindra & Mahindra Ltd.
Manish Arora, Business Head, Construction Equipment Division, Mahindra & Mahindra Ltd.