“Our endeavour has always been to create a value proposition for our customers, enabling the process of procurement, deployment, maintenance and disposal,” says D. K. Vyas, CEO, Srei BNP Paribas

 Srei BNP Paribas, one of the market leaders in the construction mining equipment financing space, has not just consolidated its position over the years but also demonstrated the grit to survive through turbulent market conditions. Hence, the bigger question is not what financing solutions Srei BNP offers for the construction equipment space but how the company assists its customers to avail the financial assistance as well as ensures that the customers keep maintaining a favourable payment track record with us.

The construction equipment space has numerous standard equipment; namely, backhoe loaders, excavators of different capacity, different types of cranes, motor graders, compactors, concrete pumps, transit mixers, tippers, hydraulic piling rigs, batching plants, among others. Its ever-increasing commercial understanding of construction equipment and risk appetite to finance every segment creates the market differentiation for Srei BNP Paribas.

At the lower end of the spectrum, the company primarily takes an asset risk. At the higher end of the spectrum, it not just evaluates the asset risk but additionally deep dives into the project risk, client profiles and regulatory risk. It extends its facilities to first-time users, first-time borrowers, mid-sized corporate, large corporate, large turnkey projects, among others. Srei BNP Paribas offers both loan and lease facilities with the assistance range of 4 to 5 years. The company also insists that the customer bears a small part of the equipment to ensure retention of customer interest in the arrangement. Its security primarily remains to be the asset and the rate of interest is always a function of the quality of the asset and the associated risks in the exposure it takes. The company also extends its assistance for both new and pre-owned equipment.

Srei BNP Paribas helps customers to understand the commercial viability of the equipment in the ongoing projects. This helps them take an informed call prior to taking the financial assistance, which in turn ensures timely payment of the balance.

Srei BNP Paribas believes that the customer demand for the coming quarters is going to strengthen in the construction equipment arena. The budget recommendations clearly addresses the need to drive the growth engine through a robust manufacturing sector, enhanced investment through FDI, providing boost to infrastructure development, transparent taxation policies, enhanced skill development initiatives, and developing the domestic competency in preparing for the future. Additionally, the budget also focuses on critical aspects of broad basing the growth by alleviating investments and initiatives in agriculture, rural development, education, healthcare, low cost affordable housing and urban development. Hence, it is believed that when so much is going to happen in the economy, one of its critical contributors, i.e. the construction sector, will definitely throw positive demand trends.

Srei BNP Paribas believes while achieving targeted fiscal deficit of 4.1 per cent of GDP and revenue deficit of 2.9 per cent may be a daunting task, the execution on the ground will make all the difference. FDI floor reduction in real estate would go well with reducing the overall clearance mechanism in the sector. About 8,500 km of national highways and `37,880 crore investment in NHAI would fillip growth engines through speedier contract allocation. Municipal debt obligation facility of `50,000 crore with prudent rules and regulation at the local levels would work favourably. Jal Marg Vikas, industrial corridors, smart city initiatives and expressways for these corridors would have immense demand generation ability for the construction equipment space and the financing of these equipment. Srei BNP Paribas remains bullish in its outlook for this industry and would work towards an inclusive growth regime.