Q 1) What growth patterns you are expecting in construction equipment industry in India in 2017-18?
The current year has witnessed some ups and downs mainly due to the introduction of GST and the resulting scenario. The end of Q1 saw the demand peak in June’17 in an unprecedented manner – it was the highest for any month so far for the CE industry. July and August saw substantially low demands partly due to the purchase preponement by many to avoid the GST impact. The demand was also affected by the uncertainties related to the details of GST implementation and availing of input credits. In many parts of the country, it was also the off-season due to the monsoon effect. Q3 started on a good note with the demand showing an upward trend. This was further boosted by the GST Council agreeing to the industry submission to lower the tax rate to 18% from 28% in Nov’17. This decision will help in not only restoring the earlier demand levels but may actually push for further growth in the last quarter. The year should therefore end positively with an overall growth y-o-y.
Q 2) What positive market conditions will work in favor for “Kobelco Construction Equipment India Pvt. Ltd.”? How your business is going to take benefit of them?
Kobelco has achieved a steady growth during the past 10 years despite the market having experienced some slowdowns. The future predictions are for a healthy growth with Kobelco taking several initiatives to consolidate their position through value additions and improved Customer support. There are some more positives for Kobelco from current trends. First, the market is seeing a slow but definite shift towards machines with better quality, productivity and reliability. This will increase the demand for premium machines. Second, the Govt. is expected to bring in legislation to regulate the Indian CE market which should bring in technological upgradations and push the market towards higher-end machines.
Q 3) How do you see the mega CE trade fair of EXCON 2017? In what manners will it prove advantageous for your company’s growth prospects?
We expect to make a good impact through EXCON 2017 and improve our market visibility. Business is also expected to be good both during and subsequent to this mega-event of our industry.
Q 4) Tell us the number of products you are going to present at EXCON 2017. Are you launching any new creation at the show?
KCEI plans to display the new 38-Ton Generation-10 Hydraulic Excavator model SK380XDLC which is being introduced in the Indian market just before EXCON. This machine comes with several benefits to the Customer making it a preferred choice for most of the tough mining applications. Fuel efficiency is taken to a new level and out is increased with larger heavy duty Buckets. The heavy-duty high-performance Okada Rock Breaker will also be on display.
KCEI is also to display the SK220XDLC-10 model introduced earlier this year. However, the focus will be on the 50-feet Long-reach Attachment, which is being promoted by the Company as an optional attachment for some relatively new site applications. This latest Generation 10 model has been very well received in India for its great Value for Money USP.
The Kobelco Stall will be shared, as usual, by the Cranes team, which is now merged into KCEI as part of a global strategy. A 100 Ton capacity Crawler-mounted Crane model CKL 1000i will be on display at the Stall. Kobelco Cranes are the market leader in their served market segment.