Overall outlook is positive but the progress will be intermittently disrupted by various issues, whether local, national or global
The Indian CE industry has experienced irregular demand patterns over the years with few years of good growth followed by a drop and then a recovery of sorts. This kind of pattern has been observed over a period of many years making it quite challenging for manufacturers to plan their investments and business targets.
– E. MOSES
Vice President, Division & National Head, Kobelco Construction Equipment India
What is your future-outlook for the Indian construction and mining equipment manufacturers?
The Indian CE industry has experienced irregular demand patterns over the years with few years of good growth followed by a drop and then a recovery of sorts. This kind of pattern has been observed over a period of many years making it quite challenging for manufacturers to plan their investments and business targets. This kind of pattern was further complicated by Covid-19 pandemic in Year 2020 and 2021. But, pandemic’s impact was neutralised in Q4’2021 and Q1’2022 with the excavator industry bouncing back aided by ongoing infra and mining activities. Now, in Year 2022, the rising input costs on account of steel and oil prices, have forced the manufacturers to hike excavator prices steeply. This has impacted the industry to a good extent, especially the overall retail excavator sales in this Q2-Q3 has been lower than expectations. Moreover, due to the delay in activation of infra road projects, the overall demand for excavators esp. in 14T to 38T has been affected. The only exception has been MINI and Mining excavator segments where the demand has been relatively better than last year.
Ideally, considering the enormous task of building the country’s infrastructure to the desired level, the economy should be smooth for a period of 10-15 years so that various timelines can be ensured and cost overruns can be avoided. Presently, the nation is bearing the brunt of both these issues. On a concluding note, one can still state that the overall outlook is positive but the progress will be intermittently disrupted by various issues, whether local, national or global.
As the year has ended, how do you look at the performance for your range of products in terms of sales?
2022 began on a strong footing for Kobelco excavator business. Jan-Mar period was quite a stellar one where we achieved a number of milestones esp. in 14T to 38T category. However, as a result of rising input costs, we had to pass on the cost to consumers and as a result we saw a slight decline in sales in next two quarters. But Oct-Dec period has witnessed a rebound in our business and things have started getting back to normal. Our excavators make better sense due to their better design and build qualities, including the choice of components, which combine harmoniously to deliver the best results. This is the result of years of listening to the customer and developing innovative solutions to address their challenges and expectations. To state briefly, Kobelco excavators Save More, Produce More and Work More (higher machine uptime) and this is ensured by the high-class support provided by the Service & Parts network.
What are your recent innovative products and solutions offerings for faster construction?
Kobelco’s USPs include higher productivity, higher reliability and an industry-leading field support enabling users to derive maximum benefits during the life-cycle of the equipment. Kobelco’s Generation 10 series delivers a set of values which take performance to the next level. Increased fuel efficiency, faster operating cycles, highly durable structures and filtration systems, lower carbon footprint, longer service life of all major components, etc are collectively delivering tremendous Value. No wonder, Users prefer Kobelco once they have experienced the benefits.
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?
Because of rising fuel costs, more and more customers are willing to invest more during the equipment purchase and meet the ROI requirements with the saving on fuel. Moreover, due to environmental concerns, the purchase of fuel efficient machines is the need of the hour. Thus, the excavator manufacturers like Kobelco have a head-start in this scenario as we are already providing the next-gen CRDi engine technology in all our machines.
What are the recent improvements and advancements being carried out in your excavators to bring higher productivity and efficiency (engine power, faster swing, undercarriage, buckets size etc)?
Kobelco has been known for continuous innovations in its product line. Our excavators have been the trend setters in terms of technology and quality of material. Kobelco’s Generation 10 series delivers a set of values which take performance to the next level. Best-in-class fuel efficiency, faster operating cycles, highly durable structures, enhanced filtration systems, lower carbon footprint, longer service life of all major components, etc are collectively delivering tremendous value to our customers.
Apart from these inherent USPs, “our policy to provide the best possible solutions to our customers understanding their needs based on the application and services required along with it” has become an irresistible “value for money” proposition for most of Infra/Mining Contractors.
How are you reducing the wear and tear of your machines in order to improve their service intervals, and also to increase their lifespan?
The reliability of its machines has been one of the biggest differentiating factors for Kobelco. We have been putting a lot of investment in sourcing and manufacturing the most reliable components. Our machines are known for a relatively higher life of its key aggregates like engine, undercarriage, travel device, swing device, hydraulics, etc. This is why we have recently introduced “Ultra Care Warranty” facility for all our excavators with which our customers receive upto 10,000 hrs or 4 years of protection.
What is your future strategies at a time when technological disruptions are rapidly defining businesses in the sector?
Historically, we have been followers of international trends with our own local tint. We still have some catching up to do and this is also due to the delayed implementation of emission, safety and other regulations. The process is now being hastened but there are challenges. OEMs who continue to offer machines with legacy systems have enjoyed an upper hand with their cheaper offerings and garnered higher market shares – which is like a “double advantage”.
Things are expected to change in the not-so-near future but the accumulated advantages enjoyed over the years will allow such manufacturers to adopt the minimum/ threshold level of compliance so that they can continue to have an edge. The price sensitivity of customers may soften the impact of the new regulations and might even allow them to thrive, although with a reduced advantage.
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