We are already exporting machines that are made in India to Nepal and Bangladesh

Nischal Mehrotra

Director – Sales & Marketing

LiuGong India Pvt. Ltd. 

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? Indian CE industry taken as whole what is the current growth and expected CAGR in export?

LiuGong has been following Make In India right from its inception. Emphasized by the present government, this is indeed a great initiative by our honourable Prime Minister to promote Make In India products to the world. India has a large treasure of skilled manpower that can make quality products as per the international standards. Instead of importing products, promoting Indian make products will only boost up our economy.

Brief us on the scope and potential for export of your range of products?

We are already exporting machines that are made in India to Nepal and Bangladesh. We would also start exports to African countries and Middle East.           

Could you brief us on the roadmap and strategies initiated to become a successful player in the global markets?

LiuGong is a 60 years old brand having 17 product lines. We cover all the aspects of construction equipment right from road construction, mining, concrete, forestry to material handling. LiuGong has 10 overseas subsidiaries with 20 manufacturing bases and 300 plus dealers in 100 countries worldwide.

Which are the major markets that you focus on and what are the factors contributing to it? Are there separate investment/R&D efforts for this?  Could you brief us on the same?

LiuGong has its presence in 100 countries worldwide through 10 overseas subsidiaries. We have got footprints in Asia, Africa, Europe, North America and South America with 5 R & D bases worldwide.               

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

In total, LiuGong has 17 product lines globally. In India, we promote 6 product lines viz. excavators, wheel loaders, motor graders, compactor, dozer and forklift. 

As the global markets are highly competitive, especially in terms of quality of the product and backup support, how have you ensured the same to cut a niche in those markets?

LiuGong is a customer centric organization. For us, the customer always takes the driver’s seat. Regarding product quality, we use world’s best components in our machines. LiuGong has its own JVs for the important components viz. engine (JV with Cummins) and transmission (JV with ZF).     

Currently, what is the volume/percentage of business from export and what is the growth you are targeting or expected?

Exports contribution from India is minuscule as on date and only restricted to SAARC countries. However, we plan to upscale the same and make India a hub for exports not only to SAARC nations but also to other regions like Africa and Middle East.      

How do you assess the impact of the Budget 2020 on the CE industry?  Also tell us on the outlook especially the product range that you deal with?

With infrastructure being a key element of our country’s vision to be a $5 trillion economy, the government has made a number of announcements towards this direction that should give impetus to the Construction Equipment Industry.    

For instance, FM Nirmala Sitharaman in December 2019 announced the National Infra Pipeline, unveiling blueprint of projects worth Rs. 1.02 trillion.

Also, Road Transport and Highways Minister Nitin Gadkari is to review road projects to the tune of Rs. 3 lakh crores. Along with similar measures on roads and highways, projects on urban rejuvenation, water conservation, and rail infrastructure are likely to spur demand for construction equipment. If the statements on infra spending come into action, then the budget will spur demand for the construction equipment sector. But, policy execution remains the key.

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