Road construction equipment are the key contributors to building bigger and better roads Road construction equipment industry is the backbone driving the Indian economy.

India is a developing country, and for any country to develop it is essential to have a strong transportation network. Roads are the backbone of a huge and geographically diverse nation like India and road construction equipment are the key contributors to building bigger and better roads.                              

With exclusive emphasis on highways through accelerated highways development program by the government, how are OEMs utilising this opportunity to contribute towards the economic growth of the country?

We at Mahindra believe in the philosophy of “Customer at the Centre” for everything we do. Accordingly, our products are “Made for India” and as a result we have been able to give the lowest per cubic meter spreading and grading cost for any proper motor grader being sold in India through our Road Master motor graders. With this we have not only benefitted our customers but also to the nation by providing options to lower overall expenditure on road construction without compromise on quality.

How has the Rs 20 lakh crore economic stimulus package to deal with the fallout of the Coronavirus pandemic affected OEMs?

The 20 lakh crores stimulus package is definitely a big and appreciable push provided by the government and helped the construction industry however the unavailability of manpower to make new roads has been the bigger problem that is affecting contractors to get back up on their feet, which in turn is reflecting in the low sales of construction equipment OEM’s. The trend since last 1-2 months is however encouraging.

What are your views on the Ministry of Road Transport and Highways (MoRTH) considering deferring implementation of BS-IV emission norms for construction equipment vehicles?

This is one move which the entire construction equipment industry would see as a much-needed step. Due to lockdowns since March the validation and durability confirmation of the BS IV product of most manufacturers would have been affected. The suppliers also have not been able to establish capacity/capability for BS IV parts. The stocks at manufacturers and dealers which is normally high in March as March end is a high consumption time would also not have been liquidated due to lockdown from mid-March. Add to this the trainings and parts support required across India to support BS IV which many OEM’s would have planned but not have been able to execute. If BS IV timelines would not have been deferred, then it would have disastrous consequences not only on the manufacturers but on the entire construction eco system. This is one step that has given the industry a huge relief in these uncertain times.

Do you see Chinese companies ban on Indian highway projects as an opportunity?

Less competition is always an opportunity to others who are competing, so in that way yes.

What kind of policy initiatives or reforms do you expect from the government to support Indian manufacturers?

Preference to “Made in India” products over imported products can be one step that the govt. can implement which will result in,

1. Reduction in India’s trade deficit
2. Increase employment opportunities for Indians as these manufacturers would then want to manufacture in India
3. Make the product and spare parts cost effective for the contractors and ensure easy availability

The other step that the government can take is to ensure that there are incentives on offer for investing the money/profits the multinational companies make in India back into India which again will add value to the nation.

Labour movement and supply chain disruption was considered a major hindrance to project execution? What steps have you taken to overcome these challenges?

This is a long-term process and on a war footing basis we took necessary steps to ensure spare parts and service availability to our customers. The safety of our customers, suppliers as well as our team is of utmost importance to us and accordingly, we are slowly coming back to normalcy by incorporating robust safety measures at our supplier, supply chain and manufacturing to ensure higher productivity with safety.

As construction activities have resumed, what initiatives have OEMs taken to speed up projects?

Depending on the opening of lockdown and safety conditions almost 70% of our customer touch points are now operational to serve our present and future customers. On the supplier and manufacturing end we have reached around 33% of normal capacity and are putting in place systems and practices to ensure safety of all along with increasing productivity.

Are you experiencing a decline or increase in demand for a particular road equipment in the wake of the ongoing pandemic? How is it impacting the business prospects and project execution?

There has been a marginal decline in the road construction equipment demand, however the numbers are generally low in monsoon time
each year. The impact on demand would be clearly visible post monsoon when road construction works resume. There is definitely an impact on the business due to the uncertainty, however we still maintain a positive outlook.

What kind of support do you expect from the government to boost the road equipment sector in the country?

Timely/advance part disbursements to contractors, awarding of new road projects, liquidity for financing agencies and a comprehensive
health insurance for the road construction sector would go a long way in ensuring the sector is up and running in no time.

Tell us about the key developments in the road equipment sector?

We are working on some new products in the road construction equipment domain which will further over crusade for ensuring better quality roads at lesser costs through our reliable machines for Indian contractors.

In your view, is the infrastructure development in the country conducive for future growth?

It is but subject to when we get back to normal from the current scenario.

What are your future projections for the Indian road equipment sector?

There are a lot of roads to be built in India and a bulk of these will happen in the next 5-7 years. The Indian road equipment sector will see higher demand in coming days to increase quality and efficiency and reduce dependency on labour.

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