We hit the bottom

TheConstruction Equipment industry is passing through a relatively lean phase, andKobelco CE is no exception. Having hit the bottom, the company is now reviewingits business plan to ensure growth, says SK Jaruhar, Advisor – Support Services, Kobelco Construction Equipment IndiaPvt. Ltd.


What is your outlook for the constructionequipment sector in the country?

The ConstructionEquipment industry is passing through a relatively lean phase since the beginningof the current financial year and is struggling to get out of it. Theimprovement is nominal and slow and it is rather uncertain when we can expectto be moving ahead at the previous year’s pace. Most industry watchers hope fora definitely better 2020-21, but the next few months would also be vital.


In the given economic scenario, how have youperformed in terms of Y-o-Y growth/slump?

Thecurrent year performance is well below par and there is a clear shortfall innumbers, which is impacting the bottom-line. We hit the bottom during themonsoon months and have managed to move upwards thereafter. However, there is aclear negative growth Y-o-Y, which has led to a review of our business plan forthis year and the next. The capacity augmentation is also on hold till themarket sentiment improves and sustains over a few months.


What are the trends that are continuingdriving the sales of Construction Equipment?

Roadconstruction continues to be the key driver though some Mining activity is alsopicking up. Improvement of liquidity across infrastructure projects will be keyto overall market improvement.


What, in your opinion, have been the stresspoints due to which your performance has been impacted, if at all?

Liquidityhas been the critical factor affecting work progress all over the country. TheNBFC issue also caused major impact on the industry. The General elections havea substantial impact too, as the Government focus shifts during and immediatelyafter due to other priorities. The RBI and the Finance Ministry have beentaking steps to improve the situation but, so far, the results are barelyvisible.


Whichbold actions should you urgently take to propel change and stay ahead ofcompetition?

Ourcontinued focus on satisfying and retaining our customers pays the bestdividend during any lean period. We have also introduced some promotionalschemes with certain value-additions along with incentive schemes for the fieldsales personnel.


Are there any initiatives that you areundertaking at your company towards hybrid or electric equipments?

KOBELCO,being a technology leader, had developed Hybrid technology as far back as 2006,when the first Hybrid Excavator was displayed at INTERMAT in Paris. Ourmachines have always been having the best-in-class Fuel efficiency with thelowest carbon footprint. We look at the overall productivity and operatingefficiency and reliability while introducing new technologies.


Would you like to share with our readers thenew products and services that you plan to launch/showcase at EXCON 2019?

At this edition of EXCON, we shall bedisplaying several machines and attachments. Prominent among these would be ourMining Excavator, the 80T SK850LC, being displayed at EXCON for the first time,along with our Demolition Excavator, the 35T SK350DLC. Our Mini Excavator – the3.0T SK30SR – will also be displayed at EXCON for the first time.

Among the other attachments, we shall bedisplaying the new Okada Breaker as well as the Miller range of Quick Couplers.


“Ourmachines have always been having the best-in-class Fuel efficiency with thelowest carbon footprint. We look at the overall productivity and operatingefficiency and reliability while introducing new technologies.”

  • S K Jaruhar, Advisor – Support Services,Kobelco Construction Equipment India Pvt. Ltd.

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