The future offers immense prospects for Tata Hitachi to grow and leverage the opportunities offered by the growth in economy of the country.

– Sandeep Singh

Managing Director – Tata Hitachi Construction Machinery Company

The concept of ‘Make in India’ for the world seems to have caught up with most of the OEMs. What is your take on this?

From a Construction Equipment standpoint, more than 90% of the volume of machines manufactured in India are localized to up to 60%. Most of the manufacturers have undertaken even greater localization.

A large base of vendors has also been developed over the years, many of whom are in the MSME category. This has ensured a robust manufacturing base in the country.

Components that are imported include precision aggregates such as valves, hydraulic motors, electrical sensors, and undercarriage assemblies. Because of the high investments required to set up manufacturing units in India for these components, volumes are necessary to ensure financial sustainability. This can happen through enhanced local demand through Infra investments as well as export incentivization.

If the right conditions for global investment are created, many global players can set up their bases in India. We need to attract them by offering competitive environment, incentives, and ease of doing business in India.

What is your company’s scope and potential for exports with your range of machines?

At Tata Hitachi, we service two export markets – one, the complete range of our machines to SAARC nations andthe other, excavators through our parent company HCM’s global network catering to markets in Africa and the Middle east.

Exports have been a key focus area for us,and we are expanding our range of excavators and wheeled equipment to increase our export business. We are seeing a big opportunity to service the demand from Middle East and Africa markets, where our excavators have been well received.

Do you have a separate product range of machines for the global market?

We have incorporated additional features in our machines that are suited to export markets. We also have the flexibility to introduce newer features through the assistance of HCM as and when required.

Brief us on the measures taken for effective and efficient customer engagement and improved mechanisms for feedback on product improvements?

The advent of Covid-19 affected our ability to directly engage with customers. However, this also offered us an opportunity to devise strategies to rise to meet the challenge. We addressed the challenge by continuing to enhance our presence in digital communications channels, where we are seeing great traction in terms of audience participation as well as engagement. We have developed digital sales and service tools through mobility solutions, which have proven to be valuable as well as cost effective.

Our digital connect platform called e-DOST provides a seamless digital experience to our customers and enables our customers to transact with us on sales as well as after sales requirements virtually. While physical connect remains an integral part of our sales activities, we continue to invest in digital technologies and enhancing the skill sets of our employees to ensure smooth continuity of business operations. In addition, our corporate website, as well as our website for used equipment has seen increased activity, especially during the pandemic.

In terms after-sales initiatives, we ensure far greater proximity to customers through over 240+ touch points covered by our 49 domestic and three international dealers. We continue to invest in after sales support through our dealers – in terms of diagnostic vehicles, mobile workshops and increasing numbers of outlets, so that we are within reach of the customer in the shortest time possible. We have also, through our dealer partners, started a mobile van service where the entire overhaul and repair is quickly offered to concentrated customer locations.

As for feedback mechanisms, we constantly collect and analyse feedback from customers, apart from direct feedback through our sales and service teams. These include analytics data from our telematics systems as well as our CRM system from both the sales as well as service perspective. This data helps in improving our services as well as in further making improvements in our products.

What is your view on the role of skill development / operator training and the current scenario of availability of skilled / certified equipment operators in India?

The demand for construction equipment operators and mechanics is expected to increase manifold in India, in view of the Government’s enhanced focus on infrastructure development, with flagship infrastructure schemes such as NIP and Gati Shakti National Master Plan. As per the CE Industry Vision plan 2030, construction equipment Sales are projected to increase 3 times to around 2,50,000 to 2,60,000 units by 2030. It is estimated that more than 3 million equipment operators and mechanics will be required to operate and service construction equipment between FY20 and FY30.

However, there are some challenges that need to be addressed before we can meet this demand. One of the foremost challenges we face is in terms of absorption of training costs, which are higher compared to other construction related job roles by virtue of the capex and operating expenses involved.

After the training is concluded at our centres, it is ideal that the trainees should be deployed for On-the-Job training (OJT) at actual work sites. This would go a long way in enabling them to augment their acquired skills with real world experience in operating under actual conditions. However, opportunities for such OJTs are limited in the current scenario. Finally, construction equipment operation is not a very attractive career prospect for today’s youth in view of tough working conditions.

Another key area of concern is that unlike global standards, there is no regulatory requirement for employment of trained and certified construction equipment operators and mechanics in India. In view of the increase in demand for CE operators and mechanics in future, and on account of safety requirements with regard to operation of construction equipment, graded mandatory certification of operators is crucial.

Apart from operator training undertaken by individual OEMs, the Construction Equipment Industry collectively through its Sector Skill Council, the Infrastructure Equipment Skill Council (IESC), has been imparting trainings to unskilled and semi-skilled equipment operators.

Since its inception, IESC has developed 40 job roles covering over 80% of the work force, accredited over 60 Training Partners majority of whom are OEMs, certified over 800 trainers and trained over 50,000 personnel. IESC is duly supported by OEMs through both their training expertise as well as their state-of the-art operator training centres which are located pan India.

Along with support from member companies, IESC is further strengthening its operations by adding more customised training programmes for operators and technicians.

What are the challenges / risk factors that you foresee for the CE segment and what are your suggestions to iron out those challenges?

The future offers immense prospects for Tata Hitachi to grow and leverage the opportunities offered by the growth in the economy of the country. We continue to leverage these opportunities by investments in products, services as well as extending and investing in our dealer partners. We will introduce newer products across and – solutions range of products in excavators and wheeled equipment keeping in mind both customer as well as emerging industry requirements tailored to their needs.

Hits: 0