Compared to 2015, Putzmeister´s business grew by 30 per cent in 2016. Wilfried Theissen, Managing Director, Putzmeister Concrete Machines, shares more details in conversation with SHRIYAL SETHUMADHAVAN.
After the boom in 2010-2011, the CE suffered a downturn for over three years. Only in the second half of 2015, the market showed signs of recovery. The year 2016 has been good with a growth of more than 30 per cent as compared to 2015. The Central Government is on an ambitious agenda. But the momentum at present is in roads, with the ports, metros, airports and power segments still lagging behind. Another sector important for us is real-estate, which has been in turmoil for over a year now. Unfortunately, demonetisation has not helped the sector either and it will take at least two to three quarters before it starts picking up. So, we expect growth in real-estate in the last quarter of 2017.
Impact of demonetisation on construction equipment:
Contractors do not have the money to pay labourers. This is affecting project execution. Also, we are witnessing a slowdown in sales of spare parts, new machines are less affected, and demonetisation has been used as an excuse to delay payment of bills.
We did not launch any new product at BAUMA CONEXPO INDIA held in December 2016, but we have increased our product portfolio. Putzmeister has four verticals: Concrete is known, but underground mining, industrial pumps and plastering are not as popular. Hence, we showed products in these verticals at BAUMA last year.
Make in India:
While we make 100 per cent in India, we localise about 70 per cent of our parts in the country. This is because we have not yet established suppliers who can fulfil all our specifications. We are employing about 600 people and export from India to Africa, Southeast Asia, etc.
We offer comprehensive training to operators; from theoretical training in the classroom to hands on training in our training centre in Goa and of course during commissioning on the job-site.
Growth in five years:
India´s needs, and therefore the growth implication for the CE, are phenomenal. We have all the technology required to help our customers to do their job.
Current legislation however doesn´t allow us to bring all our advanced products into the market. For instance, we have truck mounted pumps of up to 75 m, but local legislation allows us to put on the road only pumps on four axles up to 42-m lengths. Requirements will only change if the law changes.
We are carefully listening to the needs of our customers and the market. The increasing demand for speed and quality of execution will open up opportunities for all our product verticals.
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