Fleet owners, today, are aware of the benefits of buying Indian make construction equipment.

How do you see the government’s ‘Make in India’ program and mission motivating industry to participate in it? How is this helping the construction equipment sector to improve its technological status and competitiveness in the global market?

At Mahindra MCE, we believe that the “Make in India” initiative has helped to immensely strengthen the infrastructure of the country. The government’s focus on infrastructure development through projects like Smart city, Golden Corridor, Housing for all, and the restructuring and expansion of railways have further boosted the construction equipment sector. As per a report construction equipment market is projected to grow at a CAGR of 23.3% during 2021-2027, driven by rising investment in infrastructure, FDI reforms, and a growing economy.

The ‘Make in India’ program has aided the CE sector in improving its technological status and global market competitiveness by fostering R&D, modernizing manufacturing processes, and increasing global market competitiveness. The initiative has encouraged foreign firms to invest in India and establish manufacturing facilities, which has resulted in the development of new technologies and innovations in the sector.

Foreseeing the government’s strong commitment and stable sentiments in the market, how do you evaluate your company’s growth in the coming years?

We strongly believe that our emphasis on cost-effectiveness and continuous improvement will secure our place in the construction equipment industry and help us grow. The commitment from the Indian government and stable market sentiments have also helped us over the years.

In the last decade, we have seen change in the mindset of our customers. Fleet owners today are now aware of the benefits of buying Indian make construction equipment. It helps them in getting the spare part locally along with quick service support. Also, the cost of operating and ownership of Indian construction equipment will obviously be profitable as compared to the other foreign companies.

There is a process set for capturing feedback from our customers and to understand what the site requirement are. Being an Indian construction equipment manufacturing company, cost effectiveness, the continuous urge to make the product even better than before will ensure our place and help us grow in the CE industry.

Currently we are into road construction and earthmoving equipment. Our Motor Grader “RoadMaster” series is already number 1 market share holder under sub 100 HP category. We have grown by 4% compared to last fiscal year with our Backhoe loaders “EarthMaster” in terms of volumes. Our focus is to further penetrate the rural infra projects and develop equipment which benefit the small contractors working in villages.

The volumes for our EarthMaster have also increased over the previous fiscal year. Our goal is to expand into rural infrastructure projects and create equipment that will benefit small contractors working in villages. As an Indian manufacturing company, we take pride in offering our customers local spare parts and quick service support. We look forward to introducing superior products at global standards through rigorous testing and benchmarking with global players. We also value customer feedback and strive to understand their needs in order to continuously improve our products.

We at Mahindra MCE are looking towards a growth of 25% in our market share in FY 23-24 and increase our presence in the Indian CE sector.

What are your views on manufacturing making India as a global CE manufacturing hub?

It is encouraging to see global players from Europe, US, Japan, and China setting up shop across Pune, NCR, Indore, and other strategic locations. With construction opportunities growing extremely fast, India is in the right track to become the most recognized construction equipment manufacturing hub globally.

Tell us on your export market and important initiatives to cater to the requirement of international market?

Globally, construction equipment sales have risen by 11 per cent in 2022 which is a record high of 1.29 million units, an increase of more than 120,000 machines compared to the previous year. These are the good signs for us to explore more in exports business. We have specific differentiated products for our export market. Along with BHL and Grader we have developed haulage tractor for heavy hauling in farm and construction sector. We are currently serving countries in SAARC and Africa along with some countries in the middle east. Our products are very well accepted in these markets. We are exploring other parts of the world to provide a better product with global quality standards.

Give us an understanding of your company’s performance in the last 3 years?

Mahindra Construction equipment is growing by an average of 3-4% every year in volume. This is in line to the infrastructure development happening in India. We are already number 1 in motor grader market under sub 100 HP segment. Along with domestic we have also registered growth in export market adding to the profit for our business.

What are your future strategies at a time when technological disruptions are rapidly defining businesses in the sector?

Mahindra has always been a company who continuously improves the quality of their products, be it any division, Mahindra has been the first one to adapt to changes in the market and provide best in the market. Mahindra CE keeps on conducting surveys to get feedback from our customers, competition customers from time to time as and when required, to make our products even better to cater to the customer needs in the market.

How is the scarcity of skilled operators affecting the prospects of theCE market?

Heavy construction equipment needs trained and expert operators, to run the machines smoothly. At Mahindra, we conduct regular operator training campaigns to retain and skill our operators. However, the scarcity of skilled operators is a major concern for the prospects of construction equipment.

CE manufacturers are now under pressure to manufacture machines which are not only cost effective, but also comply with the emission norms. What are your views on it?

Undoubtedly the engine is the heart of any vehicle – be it motor vehicles, buses, trucks, tractors, or construction equipment. When it comes to emission norms and engine changes, it is certainly a major technological shift because any change to the engine will reflect on the overall efficiency and performance of the vehicle. With BSIV introduction, our entire range is enhanced both in terms of productivity and features. These emission norms have pushed manufactures to become innovative and develop more advanced technologies in their product. Soon the government will roll BS5 emission standards in India.

These emission norms are for our welfare, as it will keep the pollution levels in control and will lead us to a healthier life. But yes, looking from a business perspective, to comply with these new standards, we must further upgrade our engines that will involve costs. But we are sure these evolved products will be good for customer and environment together.

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