Quippo Construction Equipment Ltd is a construction equipment service provider offers renting and equipment banking services. It offers a complete range of construction equipment with technically competent operations and maintenance team which has been serving a wide range of sectors like infrastructure development, real estate, highway projects and power plants. Himadri Sankar Bhattacharjya, Managing Director, Quippo Construction Equipment Ld shares his views on current trends on construction equipment and buying or renting – which is a better option.

Current trends
The vision of the new government and various initiatives and projects undertaken reflect ample scope for construction equipment market and related activities in the coming years. The road and power sector have been given adequate weight age with huge funds allocated towards the same. According to Bhattacharjya, “Increased impetus to build metro rails and bullet trains across cities to bring sea change in overall transportation sector, ambitious 100 smart cities, dedicated freight corridor project and high-speed railway corridors would provide momentum to the infrastructure growth and the construction equipment industry.”

Buying factors
Commenting on the major factors a buyer should consider before making a decision of buying construction equipment, Bhattacharjya says, “This (procurement decision) depends on many factors like buyers current situation and financial capability, cost of equipment ownership versus renting, equipment usage, equipment availability in the market, future plans, method of acquiring equipment i.e. cash or financing, in-house maintenance capability, and storage facility. Buying and renting both have their pros and cons, under certain conditions it is financially advantageous to purchase, whereas under other conditions it is more economical and suitable to rent. A buyer has to give appropriate weightage to all the factors before arriving at a decision.”

Procurement decision drivers
Drawing attention on the driving factor in the procurement decision making, he says, “Cost of equipment ownership versus renting needs to be appropriately calculated to arrive at a decision of owning or renting. Also, buyer’s preference on utilisation, flexibility, in-house capabilities and future plans drives his decisions. Other factors like financial costs, market stability may also impact a buyer’s decisions.”

Buying or leasing?
Speaking on the buying factors while determining whether to rent or buy construction equipment, Himadri Sankar Bhattacharjya says, “Cost of equipment ownership versus the cost of renting the equipment is the major deciding factor. Renting offers the benefits of lower initial investment, access to new and updated technology, avoiding associated related costs like financing, manpower, repair and maintenance, transportation, storage, taxes and insurance etc. However, considering the project length, flexibility required and if conducting several jobs at a time then buying makes more sense than renting.”

Quippo’s USP
Quippo is a comprehensive equipment service provider offering tailor-made innovative equipment solutions to its customers. Commenting on why a developer should go for construction equipment offered by his company Bhattacharjya says, “The customer gets the advantage of our deepest geographic reach thus saving on their transportation costs, expertise to manage large variety of fleet mix (various makes and models), offerings with or without skilled operators and maintenance (thus saving manpower costs), in-depth knowledge and expertise in equipment rental and allied business and saving on other related costs like insurance, storage etc. We have been partnering almost all large construction companies of India and provided them the best of the solutions on time.”

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Buying and renting both have their pros and cons, under certain conditions it is financially advantageous to purchase, whereas under other conditions it is more economical and suitable to rent.

Himadri Sankar Bhattacharjya, Managing Director, Quippo Construction Equipment Ltd