Projects awarded and the rate of execution are the primary drivers for the sale of compaction equipment.

Vivek Hajela, Vice President & Head, L&T Construction Equipment Business

How do you view the current road & highway construction scenario?

India’s road and highway sector is now the second largest in the world, and our Union Minister for Road Transport & Highways, Mr Nitin Gadkari, has the vision to improve it further. Many new road alignments are proposed, bypassing major metros to cut travel time. The long-term goal is to reduce logistics costs. Logistics costs will decrease when the roads connecting ports, major railway hubs, and industrial centres are integrated. The road sector will continue to be a significant driver of infrastructure growth.

The revised target announced by the minister for the highway sector is 60 km per day for the near future. Road connectivity improves the momentum of overall economic activity in regions getting connected, and this infrastructure development has enabled the Indian economy to grow faster.

How large is the compaction equipment market in India, and how big do you expect it to grow?

The compaction equipment market is around 4,000 machines annually. It is expected to grow between 10 and 15% annually. The market growth will depend on the speed of execution of the road projects. The road sector is a major employment generator and many state governments award contracts in the road sector. With the execution of projects gathering pace, the growth of the compaction market is bound to accelerate.

The government has provided special importance to roads and highways in the Union Budget. Has it started reflecting on the sale of compaction equipment?

Projects awarded and the rate of execution are the primary drivers for the sale of compaction equipment. In recent months, project execution has slowed in many parts of the country due to erratic monsoons. The sale of compaction equipment will follow awards of new jobs, albeit with a lag. The pace of construction will pick up, which will be directly reflected by higher sales.

What are changing customer preferences in the compaction equipment market?

Customers prefer to procure compaction equipment from manufacturers with a well-established network and after-sales support. The machines require site support, and manufacturers who have earned customers’ loyalty over the years are preferred. In addition, some customers look for machines with higher local content. Finally, customers are willing to pay a premium for machines with a reputation for trouble-free operation.

L&T holds a significant advantage in the realm of road machinery. As a part of the Atmanirbhar Bharat Initiative, L&T has launched a new range of CEV-IV emission-compliant machinery, including the L&T 1190 Soil Compactor, L&T 990HFi Tandem Compactor, and L&T 2490 HD Pneumatic Tyred Roller, all with high local content.

We’ve also focused on enhancing after-sales support by developing capabilities and investing in infrastructure. Our nationwide network consists of zonal and territory offices, 30 distributors, and six strategically placed service stations for major repairs. Additionally, we have a central warehouse in Nagpur for efficient logistics.

At L&T Construction & Mining Machinery, our goal is to reach customers within 3-4 hours, as we believe that exceptional service leads to success. In our 76-year history of partnering with India for nation-building, we have always considered top-notch after-sales service a key customer differentiator.

We are also implementing tracking capabilities in our machines for continuous performance monitoring, timely services, and increased uptime. Our EquipCare toll-free facility allows customers to report service requirements 24/7 and receive a deadline for service completion. Customers can also provide feedback, which helps us consistently improve response times with technology as a driving force. We are dedicated to continually enhancing our service delivery and adding more value to the after-sales process.

How does your company ensure that your machine is a brand vis-a-vis your competitors in the segment?

L&T offers a whole range of vibratory compactors. The L&T brand enjoys the trust of customers, with L&T serving customers in the Indian construction and mining equipment industry for over 75 years. Over the years, L&T has built the brand name by delivering the best-in-class after-sales support. Initiatives like EquipCare, which tracks the entire service cycle, help deliver a good service experience.

What are the latest technologies in your compaction machine going with the recent trends in the road construction market?

We have the option of fitting the machine with L&T DigiEye, which will relay data remotely on a machine’s location and other crucial information. We also have the option to provide Intelligent Compaction Systems on both our Soil (L&T 1190) and Tandem (L&T 990HFi) Compactors. In addition, a Compaction Meter displays the compaction that has been achieved. These technologies will pick up in the near future.

What is your presence in the aftermarket vertical for compaction equipment?

L&T re-entered the compaction market in the year 2016. At present, a population base of 3,500 machines are operating in the field. L&T has experience in refurbishing machines and a well-established used equipment business team that identifies market opportunities. L&T is well poised to enter this market as and when opportunities arise.

With some OEMs entering the rental business, rental companies are feeling the heat. How do you view this concern of the rental companies?

OEMs entering the rental market have done so based on their understanding of the market. Komatsu and L&T, however, operate in the new equipment segment and have no plans of entering this sector.

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