RISING Above!

The growth momentum in infrastructure has always been a boon to the development of components, accessories and spares market in the country. The new policy initiatives like Atmanirbhar Bharat and incentive schemes like PLI have helped revive the local manufacturing of components, accessories and spares that will make the players competitive in the global market as well as in India.

Equipment Times looks into the scenario of manufacturing facilities, initiatives in skilling and training, use of robotics, export market and future plans of components players.

Rising equipment safety concerns and government regulations on equipment emissions are contributing to the industry statistics. High usage of machinery in construction activities leads to frequent wear & tear of spare parts, thus resulting in poor equipment and thereby supporting the demand.

Stringent government regulations on emission and the safety of construction equipment are forcing equipment owners to check their equipment periodically to avoid any major failure. Regulations also mandate the periodic replacement of engine, suspension & hydraulic components if they are causing excess pollutions or creating a possibility of equipment failure.

The construction equipment spare parts industry is witnessing an upward market trend due to high investments in maintenance and refurbishment activities.

One of the key factors limiting the market growth is the high initial cost of replacement parts and services. Most of the company warranty plans do not cover all the spare parts, thereby increases replacement cost excluded parts that have a warranty. Additionally, construction equipment OEMs are establishing training facilities to train their equipment operators. Well-trained operators carefully handle construction equipment, reducing the wear and tear of machine components, thus negatively affecting the market statistics.

Technological developments, such as digital twin and connectivity solutions, in equipment are reducing equipment maintenance, affecting the industry revenue.

The demand for spare parts is often characterized by being intermittent. It means that demand can be infrequent and is extremely dispersed over time periods. In other words, the demand for spare parts is extremely sporadic. This irregular demand arrives every time a component fails or requires replacement. Furthermore, complexity increases due to variability in order quantity and size.

Industry speaks…

Shailesh Sharma, Director, Manufacturing – SKF India and South East Asia, said, “India is the third-largest CE market after China and USA, and we are on our way to becoming the second largest in the world by 2030. As the economy further opens, the market for construction equipment will follow an upward trend in the medium to long term. The Indian government’s continued focus on infrastructure investment and enabling policies will help in driving rapid infrastructure development across all avenues including airports, ports, and highways to smart cities. Additionally, the lower manufacturing costs and availability of skilled labor, have created a huge opportunity for global equipment manufacturers to set up their base in India. Furthermore, strong relations between India and the EU, ASEAN, and the Americas are a complementing factor to make India an export hub for construction equipment. Also, given that India has promised to cut its emissions to net zero by 2070, several industries including the construction equipment manufacturing companies are focusing on more environment-friendly and cleantech solutions. The market is also moving towards maintenance-free bearings, “Made in India products”, and intelligent feedback systems.”

Rajiv Poddar, Joint Managing Director, Balkrishna Industries, said, “India’s Off the Road (OTR) tire market is flourishing owing to the rising demand for mining and construction equipment, in addition to farming equipment. It is fast emerging to become one of the most promising future-ready sectors in the country and is expected to grow at a rate of 15% by 2025. The privatization of the Indian coal segment, the largest mining sector in India, has evidently also opened many avenues for the OTR tire Industry.

Sandeep Khullar, Head, Off-Highway and Heavy Vehicles, Dana India, said, “As a global company, Dana is utilising its knowledge base, available globally and in India, to train our local employees. Boosting localisation and the domestic market is the path to global competitiveness. Dana believes premium products, locally made, and high on reliability and safety are strategically important to growth in India.

Himanshu Sharma, Head, Marketing and Corporate Communications, B&R Industrial Automation, said, “B&R has always been customer focused; it has always been the aim to provide a systematic support to all our customers. Our application engineers, support engineers, and service team are constantly in touch with our customers. We do not just provide business support, but we follow a collaborative approach. The whole market situation is ‘grow together to the top’.

Rajesh Bagrecha, AVP, Sales, India & APAC, Mahansaria Tyres, said, “We believe our facility is one of the most modern and advanced off-road tyres production facilities in the world where we have incorporated significantly better features using our lessons from the last 30 years of tyres production. We are also setting up a state-of-the-art mould manufacturing workshop to give us enhanced flexibility to meet customer requirement at short notice.” 

Parvez Siddike, CEO, Flexiflow Industries, said, “We are one of the manufacturers offering complete screening media products in wire, Polyurethane and Polyhybrid screen. We can offer Polyurethane screen across any OEMs design. Raw material sourcing is paramount to us maintaining the global quality standards of our products. We can offer the PolyRipple (anticlogging screen) in a minimum aperture
of 2mm.”

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