Despite an evident slowdown in the economy,Action Construction Equipment Ltd. (ACE) has delivered a strong financialperformance, strengtheningtheir position as the No. 1 Crane Brand of India. Pradeep Sharma, President,ACE says that the companynow aspires to becomea leader in most of the business segments that they operate in and beacknowledged as a trusted provider of best-in-class products.
Whatis your outlook for the construction equipment sector in the country?
Currently,the industry is facing slowdown, which is expected to last for 2-3 quarters.However, moving forward, it will witness higher demand amid the government’sresolve to build world-class infrastructure and the digitalization ofmanufacturing processes for rolling out technically advanced equipment.Additionally, emerging growth areas, such as leasing and rental of equipment,exports, and increasing deployment of refurbished equipment integrated with excellentcustomer service will boost the growth of Construction Equipment industry inIndia.
In the given economic scenario, how have youperformed in terms of Y-o-Y growth/slump?
ACE operates in four major product segments i.e.,Cranes, Construction Equipment, Material Handling, and Agri-Equipment, with theaddition of a new segment – Foundation Equipment – this year. We have abalanced approach towards all our segments, which helps us capitalize on our strengths in allthe four segments and respond strategically to market fluctuations and customerexpectations.
Whatare the trends that are continuing driving the sales of Construction Equipment?
The bullet train project, elevated roads, advancedrail network, Urban infrastructure such as Metro projects across various Tier-Iand Tier-II cities, Freight Corridors, Airport expansion and modernization,Clean India and Smart City projects along with increasing focus on precaststructures to expedite execution speed of projects will drive demand forconstruction equipment, especially mobile cranes, tower cranes, backhoe loaders,and piling rigs.
What, in your opinion, have been the stress pointsdue to which your performance has been impacted, if at all?
The past two years have been satisfactory for us asour revenue andprofit numbers have grown steadily, strengthening our position as the No. 1Crane Brand of India. The company has delivered strongfinancial performance, worked closely with end users and communities, and, atthe same time, earned a fair return for our shareholders. However, currently, the Infrastructure ingeneral and CE industry in particular, is facing subdued environment which isexpected to last for 2-3 quarters.
But,moving forward, the Indian construction equipment sector will undergo sweepingchanges. It will witness higher demand amid the government’s resolve to buildworld-class infrastructure as well as the digitalization of manufacturingprocesses for rolling out technically advanced equipment for lifting India’sInfrastructure growth.
Which bold actions should you urgentlytake to propel change and stay ahead of competition?
We are already the leaders in Cranessegment. Similarly, weaspire to become a leader in most of the business segments that we operate inand be acknowledged as a trusted provider of best-in-class products. Towardsthis, our relentless focus will be to speedily attain leadership in all thebusiness segments while our diverse portfolio of businesses and competenciesprovide unique sources of competitive advantage.
As webuild scale, we remain deeply committed towards fiscal discipline and valuecreation. We have institutionalized best practices that have led to efficiency,safety, sustainability and stronger businesses.
Arethere any initiatives that you are undertaking at your company towards hybridor electric equipments?
ACE has a customer-centric approach, whichdrives us in offering customized solutions to cater to specific customerrequirements. We regularly take feedback from our customers related toperformance and productivity of our equipment and inculcate improvisation inour products to offer technically advanced products designed and developed atDSIR approved R&D Centre of ACE.
Wouldyou like to share with our readers the new products and services that you planto launch/showcase at EXCON 2019?
It willbe a very special year for us as we gear up to showcase our latest productrange: Rotary Piling Rigs, innovative and intelligent next-generation NX-seriesCranes including NX360°-Full slew-cum-Pick ‘N’ Carry (20T) Crane, NXT-150 Pick‘N’ Carry Crane combined with a Telehandler, and NXP-150 Pick ‘N’ Carry Crane-cum-aerialwork platform (AWP), hydraulically operated from the top, and the newlyintroduced higher capacity Truck Mounted Cranes – TM 450, and TM 550. Additionally,our other equipment range including Backhoe Loaders, Motor Graders, TowerCranes, Tandem Rollers, Agri-Equipment and Soil Compactors will also have aprominent presence at EXCON 2019.
“We are already the leaders in Cranessegment. Similarly, weaspire to become a leader in most of the business segments that we operate inand be acknowledged as a trusted provider of best-in-class products.”