The PLI scheme has undeniably enhanced India’s competitiveness by fostering a robust domestic manufacturing ecosystem

Manish Mathur
CEO-Cranes, Action Construction Equipment (ACE)

What products or solutions are you showcasing at this edition of Bauma CONEXPO INDIA 2024? What is your focus during the exhibition?

At Bauma CONEXPO INDIA 2024, ACE will present an extensive portfolio of solutions tailored for the construction and infra industries. We are set to unveil cutting-edge cranes, backhoe loaders, road equipment, and material handling equipment, all designed to enhance operational efficiency and safety. Many of these products incorporate advanced technologies such as IoT-enabled monitoring systems, ensuring that our customers stay ahead in today’s competitive landscape.

Our focus at this exhibition is to showcase the innovations that make our equipment smarter, more reliable, and environmentally sustainable. We aim to highlight how our solutions can help reduce operational downtime, optimize resource utilization, and deliver long-term value for our customers. In addition, we will emphasize the sustainability aspect of our machinery, which aligns with global green construction trends.

What are your expectations for participating in bauma CONEXPO INDIA 2024? How do you plan to engage with visitors and stakeholders at the exhibition? Are there any specific goals or outcomes you are hoping to achieve from this event?

We view bauma CONEXPO INDIA as a premier platform to connect with industry leaders, policymakers, and customers across the construction equipment landscape. Our participation is driven by three key objectives: showcasing our technological advancements, building meaningful connections with stakeholders, and gaining insights into evolving industry trends.

To engage effectively with visitors, we plan to conduct live demonstrations of our equipment to showcase their operational benefits in real-time.  Our team of experts will be ready to provide tailored recommendations to address specific customer needs. Through these engagements, we aim to strengthen relationships with existing partners, attract new clientele, and identify opportunities for collaboration to drive industry growth.

How has the Production-Linked Incentive (PLI) scheme influenced your company’s investment plans and production capacity?

The PLI scheme has been a transformative initiative for ACE, providing a strong incentive to expand our manufacturing capabilities. The financial benefits linked to incremental production and value addition have allowed us to channel significant investments into enhancing production lines, adopting advanced manufacturing technologies, and scaling up R&D efforts.

This scheme has also given us the confidence to explore newer avenues for growth.  By focusing on building a more robust and self-reliant production ecosystem, we are not only meeting the growing demand in the domestic market but also positioning ACE as a competitive player in the global arena.

Do you believe the PLI Scheme is effectively enhancing India’s competitiveness in the global construction and mining equipment market? What specific support or incentives do you think would further accelerate growth in this segment?

The PLI scheme has undeniably enhanced India’s competitiveness by fostering a robust domestic manufacturing ecosystem. By reducing reliance on imports and incentivizing value addition, it has enabled manufacturers like ACE to produce world-class equipment at competitive costs. This has not only strengthened our position in the domestic market but also improved our export potential.

However, to further accelerate growth, additional support could be provided in areas such as R&D funding for emerging technologies like autonomous machinery and hydrogen fuel cells. Expanding the scheme’s scope to include smaller players in the supply chain would also create a more inclusive and dynamic industry. Lastly, streamlining tax benefits and easing access to credit for technology adoption could drive faster growth across the sector.

What challenges and suggestions for any improvements or policy adjustments that would make the scheme more effective for manufacturers in this sector?

Despite its many benefits, the PLI scheme poses certain challenges, particularly for smaller manufacturers who may struggle with the high initial capital investment required. Additionally, the compliance and reporting framework can sometimes be complex, creating barriers for widespread adoption.

To address these issues, the government could consider implementing a tiered incentive structure that provides greater support to MSMEs. Simplifying the application and reporting processes would also encourage more participation. Furthermore, fostering closer collaboration between industry stakeholders and policymakers could ensure that the scheme evolves to address real-world challenges more effectively.

How do you foresee the PLI Scheme impacting the industry in the next 3–5 years, particularly in areas like localization, export potential, and employment generation?

Over the next 3–5 years, the PLI scheme is expected to drive significant localization, with manufacturers increasingly investing in domestic production of components and reducing reliance on imports. This shift
will not only strengthen India’s supply chain resilience but also enhance the cost competitiveness of locally manufactured equipment, boosting export potential.

In terms of employment, the scheme will create opportunities across the value chain—from production and logistics to R&D and technology implementation. Additionally, as manufacturers scale up to meet PLI-driven production targets, there will be a surge in demand for skilled professionals, creating a ripple effect on job creation and economic growth.

Any other information that you would like to add.

The PLI scheme represents a bold step towards realizing India’s vision of becoming a global manufacturing hub for construction and mining equipment. At ACE, we are proud to be part of this transformative journey. By focusing on innovation, sustainability, and collaboration, we aim to contribute not only to the growth of our organization but also to the progress of the industry and the nation as a whole. Platforms like bauma CONEXPO INDIA 2024 play a crucial role in driving these efforts by fostering meaningful dialogue and partnerships that propel the sector forward.