The implementation part really needs to pick up Fast

VG Sakthikumar, Managing Director

What is the overall growth scenario for concreting equipment industry?

The concreting equipment industry is doing well today.  The growth is triggered by high levels of activities in roads and metros. I think the industry will be growing definitely around 12 to 15%.  However, we expect ready mix and power sector to come up and contribute; then only we will have a uniform growth across the segments.  However, at the moment, it is not so. It is only the roads and the metro projects which are driving the growth. I am very optimistic about a quality growth in the near future.

How good was the response from ConMac 2017?

Conmac has happened at a time when the fund allotment and the fund flow for the northeast for construction of roads and other infrastructure has really picked up.  Many projects have already been awarded, and more are in the pipe line.  People from various department who visited us have realized that the type of machines what we have displayed are exactly addressing the complaints what they have been facing at their sites. We are happy that the first customer who walked in placed an order for three machines.

The Minister for Railways who visited us appreciated our efforts in skilling the operators and technicians especially for the northeast regions. He said that fast tracking of the railway projects in India, our approach and what we have to offer is exactly matching with their requirements. We are encouraged and we look forward to bigger business coming out of not only railway projects, but also other infrastructure projects.

What do you think the major challenges?

There has been renewed focus on the development of infrastructure and a slew of projects have already been announced. However, the implementation part really needs to pick up. From the Government’s side, they need to make sure that the projects are taken off and that will help the industry to grow sustainably. I hope it is a matter of time, there will be major change in this area.

With regard to our offerings, we have been discussing with the consultants and construction agencies to get an insight into what equipment can make their life better in completing the project on time, based on which we have exhibited our products. Given the challenges of the northeast, especially on weather front we recognized the need for adding and introducing machines which are capable of speeding up the projects.

How good is your market share in the northeast?

We have strong focus on northeast and this reflects in our high market share in products such as batching plants and concrete pumps and mixers.  In fact, our market share in northeast is a shade higher compared to rest of India because others are not so much interested in servicing the area, whereas we have a commitment focus. We have recently launched self loading concrete mixer which is also exhibited.

What is the potential for self loading concrete mixer in the northeast?

The market will be quite good and we hope that within one year we will be having a substantial market share. The reason is that transportation of equipment is a big challenge here. Even though distances are less, the condition of the terrain is such that the movement of equipment and machinery is not easy. Everybody would like to produce concrete at site of actual placement, rather than producing and then transporting it to long distance.  So we find very good potential for self loading concrete mixers in the northeast.

Which are the other products that have good potential here?

We find good demand for our motor graders and wheel loader. There are lots of railway tunnels under construction and our shotcreteing machines has found good acceptance. We have a good share in shotcreteing machines from northeast regions.

How do you tackle the challenges of service the clients and skilling up of operators?

We have spread our service network and have placed people in different corners of Northeastern region.  So we will able to negotiate on the challenge of after sales support, especially on reaching the customer on time.  We have identified machine clusters and in each cluster we have placed people. So we are in a position to offer quick service.  We have enhanced our service capabilities, and have also expanded our footprint in the northeast by opening our spare parts and service outlets, one in   Silchar and the other in Guwahati.  We are also well prepared to open more similar centres to meet the requirements of building fraternity if required.

On our skilling side we give training even in remote areas, where machines are working. Our efforts on the skilling front have well been appreciated by both the clients and various government departments during the show. We will continue to strengthen this area. Wherever we realize that there is a need for training, we will definitely do that.  As and when the machine population goes up, we will immediately respond to it.  We will be expanding our footprint and recruiting more service engineers in these areas.

What is the capacity size more in demand in batching and mixing plans?

The demand is more for smaller capacity plants because the project size is smaller. The requirement is more upto 30 cubic meter plants and they are quite established. Customers are very familiar with our model and they have been using it over a period of 15-20 years satisfactorily.  Most of the customers continue to stay with us.

The project size in the northeast is very small. Does it have an adverse impact on equipment suppliers?

In a way it is good because it will benefit the local contractors. If the project size is big, then probably you have to import or rather bring contractors from outside the state. That is not a good thing to happen.  It is better that as many as local contractors get engaged on these projects, and then there will be an overall growth, even socially.

But there comes the affordability issue for the contractors?

I do not think so. Say for a Rs.100 crore project, the cost of equipment and machinery is hardly one and a half percent. The more intelligent way of looking at it is that you go for a high efficiency machine and execute the project in time. If there is a bonus clause, then take the bonus.

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