INNOVATIVE AND COST EFFECTIVE AUTOMATION EQUIPMENT IS NEED OF THE MARKET

According to you what are the key market trends likely to be seen in these times, the impact it will have for the overall construction equipment industry, specifically your area of business in this sector?

Subsequent to post pandemic lockdown release situation, where entire spectrum of construction and infrastructure business were just started with momentum now, most of the ongoing projects halted due to pandemic & wants to accelerate their completion tasks due to pre-commitments, hence market needs innovative and cost effective automation equipment’s at every projects.

What are the current market drivers and what kind of demand do you foresee?

Specific to construction and infrastructure equipment’s segments, the key drivers currently are bulk projects like Expressways, Highway Projects, Mass Housing Projects of Central and State Governments, Railways, Continued Smart City Projects and Airports. The urbanisation and the cluster developments at every state planning is driving the business across the country.

Which industry segment is likely to be the biggest consumer of construction equipment?

Of course the Infrastructure Segments plays a major role in consuming more equipment’s across pan India. However, the housing construction follows to it in terms of value . It is always some range machineries find the large business in housing segments will not have major requirements in infrastructure and vice versa.

What is the current market size for construction equipment on lease? Is the industry likely to see consolidation in coming years? Your views.

In India, the lease business of construction equipment’s market size is very limited at about 8-10%. It is increasing over the years for last one decade. There is a big scope the lease / rentals business in India is going to grow in coming years more faster, as it is very beneficial for the time bounded projects to complete timely and also get varied solutions needed at every site. The industry is looking at more consolidation in this direction, they need more customised offerings like turn key project solutions, lease – buyback solutions and so on.

Which equipment demand is likely to be resilient in the days to come and why? Your take?

The advanced road construction equipment’s and low costs mass housing equipment’s are expected to be very resilient ones for the situation , it is all because the new budget is also indicates the developmental activities in this directions. We at INNOMAC strengthened our in-house R&D team, have launched various equipment’s to handle Precast Concrete Slabs, Scaffolding Materials , Building Maintenance Units over and above our regale range of construction equipment’s. These new ranges assists construction sites to their jobs safer, faster with highest Return on Investment (ROI) factors .

How is the equipment rental market going to fare? Which are the important factors that could attract demand for the industry? Business model that can work in challenging conditions?

Though it is tradition in India most of the construction and projects companies prefers to own the equipment’s, run self and maintain them for years, it is evident in recent years the renting of these machines are growing up. There are many players across India started the business of rentals and are doing successfully. Most of the developed countries having the equipment’s rentals model up to 80%, whereas India is yet around 20 to 30%, but it is growing faster in recent years. The challenge in rentals segment is the payments. Because one side the they need to pay timely equipment’s EMI and other statutory and other side if their payments struck, it leads to difficult challenge in this business.