Gearing up for Growth
Cement

Gearing up for Growth

R&amp;D and innovation would be the catalysts for future growth of any company in infrastructure, says <span style="font-weight: bold;">PRADEEP SHARMA.</span> <p></p> <p> Despite the prevailing global uncertainties, rising needs of better infrastructure, modernised methods of agriculture and growing complexity of mining or manufacturing methods will boost demand for technologically advanced equipment in these industries. Moreover, looking ahead, the growth path widens for the emerging and developing nations, which will inevitably be attractive destinations for machine makers worldwide. The new political dispensation lends lot of credibility and hope for growth of infrastructure in future.</p> <p> <span style="font-weight: bold;">Clean and transparent system</span><br /> Sounding a death-knell to black money, corruption, hoarding and fake currency trade, this unprecedented decision of the Modi government would certainly pay off in the long run. It is the closest that we can come to oft repeated adage - 'Short term pain for long term gain'. We have to remember that to free the society of any deep seated malaise, the society should be willing to swallow a bitter pill for some time. The nation would see a significant improvement in tax and fiscal compliance, which would result in a wider taxnet, substantially higher amount of tax collection and lower rate of interest. An investment of $1 trillion is envisaged in the infrastructure sector during the Twelfth Five-Year Plan (2012-2017). The changed environment would encourage people to channelise their money into more productive assets and consequently the government will find it easier to mobilise resources to embark upon capital intensive infraprojects and complete them in time. Also, the government's focus on GST, RERA and several other reforms and initiatives would lead to higher pace of growth as well as a clean and transparent system. This would see money reaching and benefitting targeted segments of society and economy.</p> <p> <span style="font-weight: bold;">Government's thrust on infra</span><br /> Infrastructure segments such as roads, railways and ports and real estate, where earthmoving construction activity dominates, can be the main catalyst for backhoe loaders. Similarly, increased focus by the government on rural development will help our industry immensely as most rural developments projects are related to roads, irrigation or housing and in all these segments, backhoes are the main construction equipment used. In the Union Budget 2016-17, about Rs 3.96 lakh crore is being allocated for infrastructure, ie, roads, railways and port construction, as well as real estate. Backhoes being the most versatile construction equipment will, in our opinion, get benefitted immensely with this increased thrust on infrastructure by the government. </p> <p> <span style="font-weight: bold;">Technologies on offer</span><br /> ACE has always believed in innovation to achieve excellence. <br /> The group has introduced new technologies and models across its product range at a phenomenal pace. Recently, it introduced its new generation pick-n-carry truck cranes. These cranes use industrial driveline from trucks resulting in improved gear shifting, better operator comfort and higher speeds. ACE Cranes have a special feature that the full rated lifting capacity is available in even articulated or steered position. In the tower crane segment, the demand is still mainly for 5 tonne to 6 tonne category. With builders going for prefab buildings, the demand for 10 tonne to 12 tonne category tower crane is growing steadily. Also, with growth in infrastructure projects expected next year, the demand for bigger tower cranes of 10 tonne to 20 tonne category is likely to grow further. </p> <p> <span style="font-weight: bold;">Speed and expertise</span><br /> The focussed strategy of responding with speed and expertise has been rewarded over the years in the form of repeat business resulting in constant growth making us among the leading companies in the mobile cranes, tower cranes and construction equipment sector in the country. Another factor driving our growth has been the versatility of our equipment to satisfy a vast range of possible applications. Our equipment has been successfully used in many sectors such as infrastructure construction, power projects, ports and shipyards, dams, metro rail, roads, mining , steel industry, engineering industry, railways, cement, petroleum, defence, chemicals and fertiliser plants, warehousing, logistics, building construction, etc, to name a few. Our road construction equipment also has been received well in the market and is now waiting to see the market improve.</p> <p> <span style="font-weight: bold;">Multiplying growth</span><br /> R&amp;D and innovation would be the catalysts for the future growth of any company in infrastructure. This would be in terms of appropriate product technology and pricing, product customisation for different applications, product reliability and ease of use, and last but not the least, post-sales support in terms of service and training infrastructure, ensuring the availability of spare parts and widening the distribution network to service the client better.</p> <p>With both the government's push for Make in India and acceptability and the pride with which the Indian customers are responding to companies like ACE - the company is fully geared-up for multiplying its growth as the market improves. Overall, we are only at about 30 per cent of installed capacities. With the market turning around, we hope to be at 70-80 per cent capacity utilisation in the next two to three years. This would help us increase our revenues exponentially without much capex.</p> <p> <span style="font-weight: bold;">About the author: <br /> Pradeep Sharma, President, ACE, an alumnus of IIT Kanpur,</span> is a veteran with almost four decades of experience in the construction equipment industry. He has widely travelled internationally and is responsible for forging prestigious JV's and alliances with the best names in the world during his career.</p>

R&amp;D and innovation would be the catalysts for future growth of any company in infrastructure, says <span style="font-weight: bold;">PRADEEP SHARMA.</span> <p></p> <p> Despite the prevailing global uncertainties, rising needs of better infrastructure, modernised methods of agriculture and growing complexity of mining or manufacturing methods will boost demand for technologically advanced equipment in these industries. Moreover, looking ahead, the growth path widens for the emerging and developing nations, which will inevitably be attractive destinations for machine makers worldwide. The new political dispensation lends lot of credibility and hope for growth of infrastructure in future.</p> <p> <span style="font-weight: bold;">Clean and transparent system</span><br /> Sounding a death-knell to black money, corruption, hoarding and fake currency trade, this unprecedented decision of the Modi government would certainly pay off in the long run. It is the closest that we can come to oft repeated adage - 'Short term pain for long term gain'. We have to remember that to free the society of any deep seated malaise, the society should be willing to swallow a bitter pill for some time. The nation would see a significant improvement in tax and fiscal compliance, which would result in a wider taxnet, substantially higher amount of tax collection and lower rate of interest. An investment of $1 trillion is envisaged in the infrastructure sector during the Twelfth Five-Year Plan (2012-2017). The changed environment would encourage people to channelise their money into more productive assets and consequently the government will find it easier to mobilise resources to embark upon capital intensive infraprojects and complete them in time. Also, the government's focus on GST, RERA and several other reforms and initiatives would lead to higher pace of growth as well as a clean and transparent system. This would see money reaching and benefitting targeted segments of society and economy.</p> <p> <span style="font-weight: bold;">Government's thrust on infra</span><br /> Infrastructure segments such as roads, railways and ports and real estate, where earthmoving construction activity dominates, can be the main catalyst for backhoe loaders. Similarly, increased focus by the government on rural development will help our industry immensely as most rural developments projects are related to roads, irrigation or housing and in all these segments, backhoes are the main construction equipment used. In the Union Budget 2016-17, about Rs 3.96 lakh crore is being allocated for infrastructure, ie, roads, railways and port construction, as well as real estate. Backhoes being the most versatile construction equipment will, in our opinion, get benefitted immensely with this increased thrust on infrastructure by the government. </p> <p> <span style="font-weight: bold;">Technologies on offer</span><br /> ACE has always believed in innovation to achieve excellence. <br /> The group has introduced new technologies and models across its product range at a phenomenal pace. Recently, it introduced its new generation pick-n-carry truck cranes. These cranes use industrial driveline from trucks resulting in improved gear shifting, better operator comfort and higher speeds. ACE Cranes have a special feature that the full rated lifting capacity is available in even articulated or steered position. In the tower crane segment, the demand is still mainly for 5 tonne to 6 tonne category. With builders going for prefab buildings, the demand for 10 tonne to 12 tonne category tower crane is growing steadily. Also, with growth in infrastructure projects expected next year, the demand for bigger tower cranes of 10 tonne to 20 tonne category is likely to grow further. </p> <p> <span style="font-weight: bold;">Speed and expertise</span><br /> The focussed strategy of responding with speed and expertise has been rewarded over the years in the form of repeat business resulting in constant growth making us among the leading companies in the mobile cranes, tower cranes and construction equipment sector in the country. Another factor driving our growth has been the versatility of our equipment to satisfy a vast range of possible applications. Our equipment has been successfully used in many sectors such as infrastructure construction, power projects, ports and shipyards, dams, metro rail, roads, mining , steel industry, engineering industry, railways, cement, petroleum, defence, chemicals and fertiliser plants, warehousing, logistics, building construction, etc, to name a few. Our road construction equipment also has been received well in the market and is now waiting to see the market improve.</p> <p> <span style="font-weight: bold;">Multiplying growth</span><br /> R&amp;D and innovation would be the catalysts for the future growth of any company in infrastructure. This would be in terms of appropriate product technology and pricing, product customisation for different applications, product reliability and ease of use, and last but not the least, post-sales support in terms of service and training infrastructure, ensuring the availability of spare parts and widening the distribution network to service the client better.</p> <p>With both the government's push for Make in India and acceptability and the pride with which the Indian customers are responding to companies like ACE - the company is fully geared-up for multiplying its growth as the market improves. Overall, we are only at about 30 per cent of installed capacities. With the market turning around, we hope to be at 70-80 per cent capacity utilisation in the next two to three years. This would help us increase our revenues exponentially without much capex.</p> <p> <span style="font-weight: bold;">About the author: <br /> Pradeep Sharma, President, ACE, an alumnus of IIT Kanpur,</span> is a veteran with almost four decades of experience in the construction equipment industry. He has widely travelled internationally and is responsible for forging prestigious JV's and alliances with the best names in the world during his career.</p>

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