An established brand in India, CASE Construction Equipmentholds market’s leadership in vibratory compactors and is a leader in loader backhoes in India
Abhijit Gupta, Managing Director, Case New Holland Construction Equipment India Pvt. Ltd shares his overview on construction equipment sector with JibranBuchh.
- In the first fiscal quarter of this year government disbursed funds and many infra companies’ bagged contracts too. Do you envision this as positive sign for the CE market?
After a year of efforts aimed at the resolution of procedural, policy related hurdles such as environmental clearances, land acquisition issues, transparent e-auction of tenders / contracts, etc. the central government has laid the groundwork for a massive infrastructure development. Ambitious projects such as 100 smart cities, Swachh Bharat program, Bharat Mala and Sagar Mala, rejuvenation of NHDP and expressways has been a welcome sign and has raised hopes for the industry at large.
These initiatives however are intended at a medium to long term growth. In the short term the demand for earthmoving and compaction equipment hasn’t been impacted so far. This is mainly because of availability of a high pool of equipment with low utilization levels. Any marginal increment in demand will get consumed within this available established equipment pool, but as this utilization of equipment goes up, fresh requirements will emerge in many areas. Overall the sentiment is positive in the CE industry.
- What is your overview of construction equipment market as of now?
Indian CE Industry, after witnessing perhaps the worst times ever seems to be waking up the possibility of a revival in the medium term. The rate of decline seen since 2011 has tapered out to single digits now. This is primarily driven by a change in the general sentiment of the infrastructure industry owing to clear growth oriented intentions shown by the central government. Therefore the CE industry, being a direct derivative of the Infrastructure development, is likely to get benefitted in the medium to long term.
Indian CE industry which is presently valued at around USD 2 bn is expected to reach USD 3 – 4 bn over the next 5 years. Consequently most of the segments have a potential to grow 20%+ per annum, which means we can expect the Industry Size to almost double by the end of the year 2020. We are also likely to witness technologically superior equipment on offer from different manufacturers.
- What sectors do you see as major growth drivers?
The demand remains subdued and scattered with no clear sectors leading the pack. However at macro level Road Sector seems to be leading the pack among sectors which will see the recovery first. The recent Union Budget announcement to increase the outlay in road sector by 14000 cr to reach perhaps an all-time high of 42000 cr in a year will boost the demand in all associated sectors. In addition to National Highway, Rural road flagship schemes such as PMGSY have yielded exceptional results over the past decade making rural India’s growth exceed that of urban India for the first time in last 5 years. All of this, backed with 158,000 km of new roads planned in rural areas in the on-going 5 year plan, indicates strong growth prospects of earthmoving and construction equipment in road infrastructure development. This should positively affect the Motor Graders, Vibratory Compactors and Loader Backhoe demand. Case India is prepared to ride this imminent growth wave with the right product portfolio and distribution network.
- Case Construction completed 25 years in India during which it has striven to become second largest back hoe holder player in India. What are some of the other milestone which you like Case Construction to achieve?
CASE Construction, a global construction equipment powerhouse, has been now present in India for 25 years and is presently offering its enviable range of Loader Backhoes, market leading Vibratory Compactors, Motor Graders, Wheel Loaders & the very efficient and versatile Skid Steer Loaders. Having remained the largest player in the vibratory compactor segment and a leadership position in the loader backhoe segment, we would like to further fortify our position in our latest offering rolled out from our international product livery.
With all of this we would continue to remain a socially responsible corporate which we have exhibited for a quarter of a century in India and for over 172 years worldwide. We continue to invest in the manufacturing operations in India under the broader ‘make in India’ philosophy of the government and at the same time ensuring that our discerning customers in India get access to the high technology products comparable to the best in the world.
- What are your long term plans for Indian subcontinent?
Over the last 25 years CASE India has maintained a leadership position in the Indian subcontinent riding on extraordinary customer connect and support. This is achieved through an extensive network of 67 dealers with nearly 250 touch points spanning the length and breadth of the country.
Since April 2011, when CASE acquired a 100% stake in its erstwhile joint venture company, an investment in excess of USD 50 M has flown into the Indian operations. As a part of our product portfolio enhancement, we have so far introduced to the Indian market Skid Steer Loaders, Motor Graders and Wheel Loaders. We upgraded our bestselling Asphalt Compactor, 752, to suit the evolving requirements of our customers. We topped it up with the launch of EX Series loader backhoes powered by FIAT FPT S8000 series engine and a brand new 1107 DX Soil compactor.
We believe in the long term growth potential of the Indian infrastructure sector and consequently a huge opportunity in the construction equipment segment. We do have a lot more plans to further augment our product offeringand the dealership network to serve our customers at the best possible levels.
