Escorts Construction Equipment (ECE) manufacturers and markets a diverse range of construction and material handling equipment like cranes, loaders, vibratory rollers and forklifts. The company was a pioneer in introducing the concept of Pick 'n' Carry hydraulic mobile cranes in the 70s in India, and continues to be the world's largest manufacturer of these cranes. A nationwide network of over 110 strategically located support locations, over 500 company trained dealers, service engineers, gives it the best market reach in India for the Sales and Service of material handling and construction equipment.
Rajinder Raina, Sales and Marketing, ECE, feels that the key concern is continuation of push from the Government on infrastructure projects. If the current momentum continues, rest everything will fall in place as he talks to
EPC&I ahead of bC India 2016.
As an established leading player in the Construction Equipment market in the country, what is your opinion on Infrastructure development activity in the country?
Infrastructure development work is going on at a very good pace. Roads, Airports, Metro Rail, Ports and Railways, in particular, have gathered the required momentum. Mines are opening up and there are some major projects like Smart cities, Swachh Bharat Abhiyan and Char Dham and AMRUT (Atal Mission for Rejuvenation and Urban Transformation) nearing launch.
The government has a definite focus on development, and it augurs well for equipment manufacturing industry as a whole. As the size of the pie grows, the size of the slice will grow that much more. As of today, things seem to be in place.
While some research analysts and economists claim that it is skewed more towards road building activity, development of power plants, ports, airports, etc continue to lag behind. Do you subscribe to this view?
The road sector took off from where the NDA 1.0 regime had left it. The way the road sector was pulled out of its logjam, the leadership of Nitin Gadkri gets full marks. The inclusive growth of a nation needs road connectivity between tier III and IV cities to the Metro cities for free flow of humans and goods. The current pace of roads will change the face of India wherein the development shall no more be the preserve of the top eight cities of India. Ports, metro rail, airports and power are fairly there on the radar.
What would you say are the main growth drivers in a highly competitive market?
How have the policies and initiatives taken by the government to develop the country’s infrastructure reflected on your company’s growth?
Infrastructure development has resulted in growth of the market as a whole. The market that we serve has grown by about 30 percent on an average across various product lines. Cranes’ market has not grown as much as Backhoe Loaders and Vibratory compactors.
The growth is on anticipated lines and, we, at Escorts, have been able to take advantage of the growth as we had planned for it and ensured that our vendors were ready too. Our volumes in the last nine months have grown at a higher percentage than the market. The outlook for the next six to eighteen months is equally positive for the industry and for Escorts.
What are the company’s expansion strategy and potential segments in Indian construction equipment business?
New product launches in Cranes and Backhoe loaders will continue. New Escorts Backhoe Loader JUNGLI has just been launched on the back of successful launch of Escorts F17 and F20 Safe cranes.
How do you ensure installation flexibility?
Most of the manufacturers are operating below their best ever production volumes achieved in 2011-12. Capacity is still not the major concern, but the product mix is. To that extent changes have been made in the manufacturing plant to deliver the product variety as per the market demand.
How is the technology placed to suit Indian requirements taking into consideration that the equipment works for extended duty cycles and adverse conditions within the country?
All Escorts products are developed in India either from scratch or by absorbing imported technology through technology transfer which was tempered with to make it India specific. The extended duty, abuse at work sites and lack of trained operators has always been kept in mind to deliver as per Indian usage/applications.
What would you say are the primary challenges going ahead?
The major concern is continuation of push from the Government on infrastructure projects. If the current momentum continues, rest everything will fall in place. A growth of 15 percent plus during the next two to three years shall be surpassed. Last but not the least; GST will work as the ultimate booster dose. Though it is a little early to comment, demonetisation will ease out equipment funding as also make it cheaper. Let’s keep our fingers crossed.
“The government has a definite focus on development, and it augurs well for equipment manufacturing industry as a whole.”