Currently, 12-15% of our business comes from exports

Manish Arora

Business Head (Construction Equipment Division)

Mahindra & Mahindra Ltd.

Brief us on the scope and potential for export of your range of products?

We are currently focusing on developing countries. Since we are making products for India, they will be suitable for work in most developing countries. Both the EarthMaster backhoe loader and the RoadMaster motor grader are made with a focus on developing India and they are already working in countries such as Nepal, Sri Lanka, Bangladesh and several countries in Africa.  

Could you brief us on the roadmap and strategies initiated to become a successful player in the global markets?

Like we said, our focus is on the developing countries; we aim to create a strong foothold in Africa, GCC and SAARC countries. We have the unique advantage of working closely with Mahindra International Operations and partner with them for developing our business in any new country, which means we do not start from scratch.          

Which are the major markets that you focus on and what are the factors contributing to it?

Are there separate investment / R&D efforts for this?  Could you brief us on the same?             

There are a few changes required for export, sometimes due to regulations and sometimes due to the market scenario. For example, we see minimal demand for HVAC cabin backhoe loaders in India. However, we still make them for export to UAE, GCC. Similarly,  AC cabin graders are in huge demand in Sri Lanka. Conversely, environmental norms are stricter in India with the upcoming deadline for BS-IV, while other countries still allow BSIII machines.        

Do you have a separate product range for the global market?

No, we do not have a separate range for the export market. The same products that we sell in India are available for export with a few minor changes in the features/options for regulations or due to market requirements.          

As the global markets are highly competitive, especially in terms of quality of the product and backup support, how have you ensured the same to cut a niche in those markets?

We are able to deliver highly competitive products on a global stage thanks to the support from Mahindra International Operations. Also, CRUSADE 2.0 which is a major driving force within the Mahindra Group allows us to stay competitive in any market, new or established, mainstream or niche.  

What do you think are the major challenges that you face in the global markets and how do you address these challenges?

Currently, awareness of our brand on the international stage is limited. So we are focusing on establishing Mahindra CE as a brand in the export market.       

How does the company address the logistical / policy based challenges with reference to the global market? Do you expect any policy reforms or incentive systems from the government that may boost the export?

We work closely with Mahindra International Operations, which allows us to stay abreast of any changes in policy and also reduces the logistical challenges of exporting to a developing country.

Currently, what is the volume / percentage of business from export and what is the growth you are targeting or expected?

Currently, 12-15% of our business comes from exports. As of now, we are not specifically focusing on increasing the percentage share of exports. We want to grow as a business in absolute terms, but considering the huge growth potential in India, we do not see the share of exports to vary significantly. However, any new markets we enter may tip the balance of growth in the favor of exports.           

How do you assess the impact of the Budget 2020 on the CE industry?  Also tell us on the outlook especially the product range that you deal with?

The outlook for both backhoe loaders and motor graders looks good for 2020. Backhoes had a rough second half in 2019, but we expect growth to pick up in 2020. Motor graders have been doing well in India for the past couple of years and we expect them to continue this trend thanks to the government’s focus on infrastructure and the numerous road projects/contracts being awarded across the country.

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