We are looking for a 15 – 20% growth in revenue and 10 – 12% growth in volume
Our turnover, last year, was Rs. 4000 crores, and this year, we are looking for Rs. 4500 – 5000 crores turnover depending on the next five months’ sales. We are aiming for a 15 – 20% growth in revenue and a 10 – 12% growth in volume.
– Sandeep Singh
Managing Director, Tata Hitachi Construction Machinery Company
What was your turnover last year and your target for this year?
Our turnover, last year, was Rs. 4000 crores, and this year, we are looking for Rs. 4500 – 5000 crores turnover depending on the next five months’ sales. We are aiming for a 15 – 20% growth in revenue and a 10 – 12% growth in volume.
Is there a growth in mining equipment?
Growth in mining equipment is around 10% more than the construction equipment growth when you look at the FY 2021-22 Tata Hitachi sales volume. Mining equipment had strong growth even during the covid times.
So do you think, this growth momentum in mining will continue for atleast few years?
The Government is very bullish on mining and the thrust on Atma Nirbhar Bharat has given a boost to the mining of not only fuel minerals but also metallic and non-metallic minerals. Coal which contributes to over 50% of the mineral production in India is expected to grow at 8-10%, which is the key driver for mining equipment business. The accelerated approach to identifying proven resources for all minerals is already on and we feel that the mining equipment business should grow at 20% in the days to come.
What would be your total share in mining?
Tata Hitachi has Excavators, wheel loaders, and large dump trucks to address the mining segment. We lead the market in excavators when it comes to mining. We recently added large wheel loaders > 5T class wheel loaders in our portfolio too. We also have 190T/240T/300T dumpers which are with AC drive systems. These are being promoted in the Indian mining industry.
What kind of turnover growth are your looking at in the next 3 years?
If the industry grows at an average rate of 10%, we should be also growing at an average of 10%. Mining growth will be one and a half times that of road construction. With the kind of growth in the mining segment, we are also expanding our product portfolio by way of introducing new products/categories like the launch of Tata Hitachi ZW225-6 a 5T Wheel loader this year for the mining sector. We are also offering high-capacity wheel loaders 7T, 10T, and 12T sourced from Hitachi Construction Machinery, Japan. Now, we will be also supplying EH3500AC-3 which is an AC drive dump truck to the Indian market, along with high-capacity Excavators of 15-17 Cum bucket capacities. Such machines are normally supported by long-term contracts. These contracts will be for a 5–10-year period. Hence, we expect our turnover to grow by double digits.
What are the steps you have taken for emission norms?
Emissions have become the key rider for upgrading equipment. The engines used on construction machines, especially on Backhoe loaders, and small Wheel loaders comply with BSIV norms. However, we have excavators complying with US EPA Tier I/Tier II depending on the size classes.
Are you also moving into the bio-diesel segment?
With the changes in the environment, there are many requests coming for alternate fuels/additives like Biodiesel, etc. These are being explored with customers. We are in the process of evaluating the use of Biodiesel with engine manufacturers too.
What are the options in India for mining?
We have electrical excavators from 11 Cum bucket capacity and above, which uses a 6.6 kV power source, AC drive dumpers from 190T – 300T, Wheel loaders up to 12T class, etc which are fitted with health monitoring systems to monitor the health of machines.
How is the availability of finance for construction equipment?
Construction equipment funding is not an issue for infra. For mining, 80% of the sales are through Coal India. Long-term financing for a contractor has been a concern in the last two years. However, in the last one year, the government has taken some steps. And now, the market is improving.
What is the share of exports?
About 7% of our business comes from exports. We export to Bangladesh, Bhutan, Nepal, Sri Lanka, the Middle East, and Africa.
Are you looking at new markets?
The CE Construction equipment market is growing in African countries, and in the Middle East. These markets synergize very well with the Indian market. One of the main advantages is that most of the contractors and people working there are Indians. So they know the strength of Indian construction equipment. And we get good enquires and supply a good number of machines.
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