“The road ahead is bright and promising in India”
Vivek Hajela, General Manger & Head – Construction Equipment Business, Larsen & Toubro Limited, talks about the recent trends and advances in the field of Construction Equipment sector.
The Government is making favorable policies to support the infrastructure growth in India as part of reform. So, what doors it opens for Construction Equipment sector?
Infrastructure development across the nation is driving the growth in the CE segment. With higher budgetary allocation and higher expected spend, it will be approximately 10% of GDP and this has given the required boost to the CE business. Roads, highways and expressways are showing the way with actual completion expected to exceed 12,000 km in this fiscal year. Product-wise, Hydraulics Excavator sales is likely exceed 24,000 units this year by registering a healthy CAGR @ 25%+ percent over the last 3 years. Similarly, the Compactor market is expected to be close to 5,500 units. Wheel Loader market is maturing fast and expected to cross 3,000 units with quarry and aggregates driving the big demand. The overall growth of these equipment is likely to be sustained and we expect a CAGR between 12 to 16 percent over the next three years.
“Hydraulics Excavator sales is likely exceed 24,000 units this year by registering a healthy CAGR @ 25%+ percent over the last 3 years. Similarly, the Compactor market is expected to be close to 5,500 units. Wheel Loader market is maturing fast and expected to cross 3,000 units with quarry and aggregates driving the big demand. The overall growth of these equipment is likely to be sustained and we expect a CAGR between 12 to 16 percent over the next three years”
R&D contributes to the sustainability of a business, given that tell us in details about versatile product line and role of R& D to beat the competition.
Yes – sustained R&D has enabled us to take our manufacturing activity to the next level and stay ahead in the business. We have been able to work closely with customers and identify the gaps which have been taken care of by our Design Engineering team. This has helped us to launch more robust and reliable models in the market which have delivered higher performance and more profitability. We have just launched Komatsu hydraulic excavator models PC300LC-8 and PC350LC-8 models in the 30-35 ton class which are specially meant for the Stone, Quarry and Marble Industry. These are equipped with latest ICT machine monitoring system Komtrax. Our PC210 Hydraulic Excavator is the mainstay model and a popular machine in the contractor segment with higher operational speed and faster cycles across various jobsites. Amongst L&T’s own products, we have an entire range of road machinery –L&T 1190 Soil Compactor, L&T 990 Tandem Compactor, L&T 2490 Pneumatic Tyred Roller which have been well accepted in the market, with compactors having crossed 1000 numbers since their introduction 3 years back. L&T 9020 Wheel Loader is also a credible performer in the small size category and a fast moving model in the material handling industry. This too crossed 1000 numbers recently.
What are the recent trends and advances in the field of Construction Equipment sector?
We have moved towards digitalization in recent years in Construction Equipment, which would give enormous benefits to the customers. The inbuilt Komtrax system in Komatsu machines helps the users track the machine and deploy it more efficiently and profitably. This would also help the operators develop themselves professionally to handle hitech and sophisticated equipment. We are working towards incorporating similar health monitoring apparatus in our L&T brand machines, which are manufactured by L&T Construction Equipment Limited. Digitalization would help the customers in optimum usage of the fleet and taking steps to inculcate discipline amongst the operators and technicians.
How do you see the future of CE industry in India and Road ahead for the company in the next few years?
The road ahead is bright and promising in India. With the entry of new players in the market, there is expansion and consolidation of manufacturing volumes. We see new models being introduced by the companies on regular basis all through the year. Products specially made for the Indian industry are being developed and accepted by customers across user segments. There is a resurgence in the CE industry and we shall see more robust and reliable models coming in to the market in future that shall fuel the growth of the industry.
