Komatsu is the world leader in Construction & Mining Equipment.

Arvind K Garg, Senior Vice President & Head, L&T Construction & Mining Machinery

How has the government’s “Make in India” program and mission motivated the industry to participate, and how is it helping the construction equipment sector improve its technological status and competitiveness?

The Indian Government’s focus on infrastructure-led development has been a critical driver for the Indian Construction Equipment (CE) industry. Continued investments and impetus on Infrastructure are expected to make the Indian CE industry the second-largest globally between 2030 and 2035. India already has a robust ecosystem of Original Equipment Manufacturers (OEMs), vendors, distributors, and dealers capable and committed to growing the industry. In addition, most global CE majors have established manufacturing bases in India, which now function as export-sourcing hubs for their global operations.

The CE industry is fully committed to supporting the government’s “Make in India” plans by achieving high levels of localisation. 90% of Construction Equipment by volume manufactured in India already has more than 70% indigenous content. These machines meet international standards of safety and quality. Komatsu has established a world-class manufacturing plant near Chennai, producing a wide range of Hydraulic Excavators and Dump Trucks that, besides catering Indian market, are now being exported to neighbouring countries, Africa, and the Gulf nations.

Similarly, L&T Construction Equipment Limited (LTCEL), a wholly-owned subsidiary of L&T, has developed fully indigenous road machinery such as vibratory compactors, PTRs, and Wheel Loaders. These machines, designed, developed, prototyped, and produced locally at LTCEL’s plant near Bangalore, have gained a significant domestic market share and are also being exported to neighbouring countries.

Can you provide an overview of your company’s performance in the last two years?

Despite pandemic-induced challenges in 2021-22, such as stagnant demand and cost increases, we achieved significant growth in excavator sales. Strong demand for commodities like coal and iron ore has driven mining equipment sales. We also successfully introduced the entire range of road machinery complying with CEV-IV   without sacrificing volumes. Our product support teams continued to provide unmatched after-sales service, and digital tools aided operational excellence.

We experienced strong growth trends in the last two quarters of FY23, particularly in the earthmoving machines segment. Although the demand for excavators had a sluggish start due to high commodity prices and extended monsoons, it gained strong momentum in the last 4-5 months.

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

The Indian government’s focus on growth, driven by infrastructure development and manufacturing, is boosting demand. Despite challenges related to a steep increase in manufacturing costs, we witnessed sales recovery in FY22-23. Various ongoing infrastructure projects under the National Infrastructure Pipeline and Gati Shakti – National Master Plan for Multi-modal Connectivity are aiding demand growth for CE.

The government is also planning many new airports and ports as part of the connectivity projects. The government’s allocation of additional funds for building new airports, helipads, water aerodromes, and advanced landing fields will improve regional air connectivity, drive land prices around the proposed sites, and add value to the real estate sector.

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

Komatsu’s Construction and Mining equipment are globally benchmarked for their high productivity, fuel efficiency, and operator safety. Komatsu is known for “Quality, Reliability, Durability” and is leading the way with sustainable technological innovations.

Customers expect the latest and new-generation products with superior technology, fuel efficiency, productivity, longevity, and a strong parts and service support system. Customers consider not just the initial cost but also the life cycle costing and productivity of machines. Komatsu and LTCEL’s long-term strategy focus on sustainable technologies in line with India’s commitment to achieving carbon neutrality by 2070. Komatsu is the world leader in Construction and Mining Equipment technology. Accordingly, Komatsu now offers a comprehensive range of biodiesel-compatible equipment, including Hydraulic Excavators, Dump Trucks and Motor Graders. In addition, Komatsu has also introduced fully electrically operated mining shovels model PC3000 in India and recently showcased its 35 Ton Hybrid excavator model HD365 at bauma CONEXPO in Greater Noida, India.

CE manufacturers are now under pressure to manufacture cost-effective machines that comply with emission norms. What are your views on it?

The adoption of sustainable technologies is the overarching trend in the industry. As committed at the COP26 Summit, India aims to achieve carbon neutrality by 2070, and the entire ecosystem in India is working towards this goal. Therefore, environmental protection and long-term sustainability are priorities for us in the CE sector.

As mentioned above, we offer a wide range of bio-fuel compatible Komatsu equipment, including environment-friendly hydraulic excavators such as Komatsu PC205-10MO, Komatsu PC210LC-10M0, Komatsu PC500LC-10R and Komatsu GD535-6 Motor Grader, all of which are B20-biodiesel ready. In addition, Komatsu’s range of environment-friendly equipment also includes Dump Trucks, Wheel Loaders, Crawler Dozers, Motor Graders, and Water Sprinklers.

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