With the current impetus on construction and infrastructure projects, for Tata Motors the construction sector will grow over the next two to three years. 'We at Tata Motors are also betting big on tippers now and the subsequent years going forward because of the positive growth and demand drivers,'says Rajesh Kaul, Head-Sales & Marketing-M&HCV, Commercial Vehicle Business Unit, Tata Motors. He shares more...
Technological innovations: Our product Prima of 300 hp offers EGR technology. Each product over 150 hp works on the SCR technology. The engine in itself burns out the particulate matter at high temperatures and transfers this through the diesel exhaust fluid in the decomposition area and exhaust processor. We also have a concept called Tata Ok, through which we offer resale support. To improve efficiency, we have modified the vehicle design to improve on the technology. We have our Ultimax suspension as a solution for all terrain compatibility. Our products are also light in weight. In tippers, we have introduced steel bodies to reduce the weight between 700-1,500 kg. We have also improved on transmissions, bringing in six speed transmissions that benefit the driver. In developed countries, high torque capacity transmissions range from nine speeds to 12 speeds. These transmissions give our customers equipment of the best quality. At Tata Motors, we carry out an integrated R&D with a budget of Rs 2,500 crore. This research is exclusively for engineering and commercial vehicles.
Global trends: Engine is one major element, which calls for maintenance. Electrification will bring down the maintenance and running cost. It depends on the cost of electricity. However, battery technology is an area today that needs improvement. It is not yet viable for a commercial vehicle of every kind. The vehicles amenable for electrification are the city buses where they make huge sense, also last mile passenger transport or last mile goods transport vehicles make sense.
'We provide international quality products suited for Indian conditions.'
Bonfiglioli is one of the top-most international players in transmission products, which has some long-term plans for the Indian market. Kennady V Kaippally, Country Manager, BU Mobile & Wind Solutions, Bonfiglioli Transmissions, and Stefano Baldi, Global Sales Director, BU Mobile and Wind Solutions, Bonfiglioli Riduttori SpA, share more...
Current industry scenario: We think the industry is slowly coming out of the recent challenges that it faced in terms of GST and demonetisation. With the GDP picking up again, we are going to see a positive impact of this in the long term. What we are sure about is a double-digit growth in the coming years but different segments of the construction equipment industry will have different growth figures. For example, excavators will probably have much higher rate of growth than backhoe loaders because it will be used more in specialised applications. Both these equipment need to be there as a lot of projects are coming up, but we expect specialised equipment to gain ground.
The areas of concern would be mining, which is still to pick up but when commodity prices are going up, we think that mining has to come up because demands are going up.
Bonfiglioli has a long-term vision for India.
We started investing in our new factory in 2016.
We are in the finishing stage of this new facility in Chennai, which will be operational by mid-2018.
The new facility will increase our capacity by 50 per cent. New products and solutions: Existing products are an ongoing business in Bonfiglioli. Our in-house R&D facility works closely with customers, understanding their applications, changing needs and we keep on improving our portfolio to meet their requirements. When there is a new product coming up for customers based on their application, we design the product in India for them. In the new product lines, most of the new concepts and designs are coming from electric driven machines, which are more environment-friendly. The traction for this technology is seen in material handling equipment, because the power density recommendations are little conducive for electric drive in material handling equipment.
So eventually, with the knowledge gained in this industry, we will apply similar concept in other areas also, such as road construction equipment, concrete machinery and others.
We design India-specific and application-specific products because Indian applications are different from other parts of the world. We can give complete solutions for the spectrum of applications in India.
We have products within our portfolio, which can meet the needs of the Indian OEM customers. We can provide any of their development needs or future application needs.
Contributing to efficiency and productivity:
When you talk about productivity there are two aspects:
One is product performance and the second is product uptake. We bring in product performance by designing products,which suite the application requirement and brings in certain productivity. Secondly, we are the world leading technology players in the transmission industry globally. So that is the legacy what we are bringing here and offering products suited for Indian conditions. Thus, we are bringing in advantages to the customer in terms of improving their efficiency and reliability. Making sure that their machines are always running, comes from product reliability, which we provide by bringing in world-class products at best in class quality.
'We design our products and solutions to make our customers more successful.'
Many customers are looking for a collaborative partner to help them achieve the most efficient and productive operation possible. 'To be a true partner, Caterpillar India is developing not only products and technologies, but a solutions-based organisation that can operationally partner with our customers to help them realise that value,' says Amit Bansal, Head-Sales & Marketing Building Construction Products, Caterpillar India, as he shares more...
Equipment demand and growth: As construction activities gain pace in the country, demand is likely to grow for high-productivity equipment, though traditional machines will also maintain their space. Equipment like excavators, motor graders, wheel loaders, paving machinery, etc, is expected to experience higher demand primarily in the road segment. Housing is also likely to bounce back and backhoes, mini-excavators, skid steers, etc, will find favour there.
Big opportunity sectors: India is a developing country; with respect to our population, there is tremendous potential to develop infrastructure.
The government has focused on all the segments mentioned above as they are important for the country's growth. In terms of big-ticket spends, roads, railways, housing and irrigation offer a major opportunity. Caterpillar has a broad range of construction and mining equipment, diesel engines and gas turbines and has appropriate solutions for these sectors. Our customers are developing the world - they could not do it without our engines, equipment and assistance.
Technological advancements: During Excon this year, we launched many new products, such as Cat 426F2, 424B2 backhoe loaders, Hindustan 2021D wheel loader and Cat 336D2 excavator as smart iron, which reinforces our plans for the construction equipment sector. We also plan to provide further impetus to our presence in the energy and transportation sectors. Globally, Caterpillar has a major presence in the energy and transportation sectors, especially in oil and gas, renewable energy, etc, with its wide range of products such as draglines, drills, pipe layers, marine power systems and electric and gas-based engines of various capacities.
Fuel savings and operator-efficiency: We are committed to our customers' success and design our products and solutions to make them more successful by using Caterpillar products rather than products from any other competitors. Cat Connect solutions offer various technologies and services to help our customers maximise machine output and increase fuel-efficiency.
'Our growth is going to be synonymous with industry growth.'
With the government's focus on construction and infrastructure, Caterpillar India is positive about opportunities coming along. Vivekanand Vanmeeganathan, Managing Director & Country Head; Andy Dhanraj, Sales Director, Global Construction and Infrastructure; and Murali Achutaraman, National Accounts Manager, Global Construction and Infrastructure, from Caterpillar India, share more...
Demand drivers: Two years ago, there were a lot of announcements from the government, but not much activity on the ground. However, since then, there has been activity, which has given a lot of confidence to contractors and customers. Today, we are seeing all announcements translate into opportunities. For instance, in terms of roads, 30 km per day is real data. So we have been witnessing that a lot of customers are buying more machines to meet this target.
Company's growth rate: ICEMA launched a report at Excon's inaugural session, which typically looked at the industry outlook. Our growth is going to be synonymous with industry growth. The report pointed to a 10-12 per cent CAGR year-on-year for the next five years. The pipeline of projects awarded is typically long term with a natural gestation period attached to it. So the report is conservative and will say that the industry will be worth Rs 8 billion in 2020 and then continue to grow at 12-15 per cent till 2023. However, I would say that even with a conservative estimate, the industry will be approximately Rs13 billion by 2025 because of a 12-15 per cent growth rate. India is definitely positioning itself to be the world's third largest construction equipment industry when it happens.
Innovative technology: Let's take the wheel loader, for example. It scoops the materials and dumps it into the loader and the haul. Each time the wheel loader scoops, there should be some record of how much is it lifting and how much it is pouring down; in the case of coal, each kilogram matters. We have a technology inbuilt in the machine; when the operator scoops the material, it automatically calculates how much it is lifting and pouring. In another instance, let's consider an excavator and even motor grader. The key success of a motor grader job in a road contract is how the customer can save on cost. Caterpillar offers a technology called Accugrade in our machine.
This helps maintain a uniform thickness for every material that is laid. Thus, the customer can be sure that he will use the material, just as required. One does not have to waste money and energy to refill, redo, undercut or overcut. Apart from these, there are many other technologies that our machines are equipped with. Caterpillar offers job site solutions, which increase fleet utilisation, control costs and use capital more efficiently. Our best application experts work with customer teams for designing and executing site-specific plans to improve productivity, manage the equipment lifecycle, enhance safety and sustainability, and optimise cash flow.
'We offer both locally made as well as imported products.'
Epiroc Mining India commenced its journey as an independent business entity at Excon 2017. Atlas Copco Group had, in January 2017, announced the group splitting into two world-class companies - Atlas Copco and Epiroc. While Atlas Copco would cater to industrial customers, Epiroc would focus on mining, infrastructure and natural resources. Jerry Anderson, Managing Director, Epiroc India, shares more...
Key offerings in the Indian mining sector: Our major offerings to the Indian mining sector are a large range of high productivity equipment through innovation and strong local customer support. We offer both locally made as well as imported products, all with the same high quality. The next step on our agenda is improving digitalisation. We talk about digitalisation in the machine industry but for most people it's the same as receiving figures on their phones sitting in their cars. We take it a step further by offering analyses that helps prevent breakdown of our equipment and systems that track people and equipment underground, resulting in better planning and execution and greater protection for our customers. Prospective clients have already shown interest in these applications.
Indian mining sector scenario: Although the sector has been somewhat dampened by regulations and tax issues, it has development potential. Also, there are few mining companies, which explains why only 10-15 per cent of mining area has been explored. A lot still needs to be done on the execution side; processes need to be speeded up. The next five years will be an exciting time for mining companies with new policies set to make the mining sector a major economic growth driver.
Growth targets and strategies: Our key focus area in India is to improve our operations. Whatever we do, we can always find a better way to do it. We need to maintain our relations with distributors and customers, and make sure the transition to Epiroc goes smoothly. When it comes to growth, I do not expect less than double digits in a few years' time.
Escorts Construction Equipment