Bauma Conexpo india Cancelled!

bauma CONEXPO India, last held in December 2018 in Delhi, saw the participation of 700 exhibitors from 26 countries. The next edition was initially planned for October 2020 but in light of the pandemic, it was postponed to April 2021. This was welcomed by industry leaders as it gave them time to recover from pandemic-induced disruptions. However, it has now been cancelled.

With increased government focus on infrastructure development and BS-IV emission norms to come into play from April 1, 2021, how will this cancellation affect the industry?

“Some meetings of the ICEMA governing council were specially organised to discuss bauma CONEXPO India 2021,” shares Sandeep Singh, President, Indian Construction Equipment Manufacturers Association (ICEMA). “The consensus was that many customers would not be able to visit because of COVID-19 and many OEMs were addressing the sudden surge in demand.”

“Participation in an exhibition is difficult as people are still reluctant to travel in the current environment,” affirms Samir Bansal, General Manager, Off-Highway Research. “Exhibitors were expecting a cancellation or postponement as other shows have also been postponed.” And postponement of the event 

would have meant a clash with other exhibitions.

“We are grappling with market challenges in terms of the supply chain, logistics and sudden increase in demand,” acknowledges Singh. “Because of these and uncertainty around customer footfalls, many OEMs suggested a relook. We explained this to the bauma CONEXPO India stakeholders; they understood and decided to call off the event.”

When such an event gets cancelled, does it affect the industry negatively?

“Under normal circumstances, it would hurt the industry but under these extraordinary circumstances, companies were expecting this,” reiterates Bansal. “Currently, sales are booming for some equipment such as backhoe loaders and excavators owing to lockdown-induced pent-up demand.” 

“These exhibitions are generally meant to build a brand and spread awareness about the brand, showcase advanced technology and launch new products,” explains Singh. “We are grappling with the pressure of the sudden increase in demand, increase in the material cost and delay in shipments of components. Even if we are seeing demand on one side, we are not able to increase our production to that level; this has become a challenge.” 

“Current demand is not being fully met owing to supply constraints; therefore, cancellation of the show will not have an immediate impact on sales,” reasons Bansal. “An exhibition is also an opportunity for manufacturers to launch and showcase new equipment or concepts for the future. Therefore, long-term plans and expectations can get affected, but not immediate sales.”

As the industry gears up to embrace BS-IV emission standards, the shortage of some components and supplies is hampering the industry. “We are struggling to see whether we will be able to produce machines for our customers with BS-IV technology,” says Singh. “The scenario has changed because of this and has led us to take this call.” 

Meanwhile, for developers, the cancellation is a missed opportunity to learn about new technological advancements. The expo offers a platform for interaction with the senior-most people and technical team, helping to correlate offerings with business requirements. “These exhibitions also give us a sneak peek into new construction methodologies, international benchmarks and global best practices,” says Kashyap. “We have many new projects coming in and this forum helps us finalise a lot of machine-based business criticality and requirements. This will definitely be a miss for us.”

“It is customary for my entire team and even the management to visit the exhibition and see the new developments in technology,” echoes Ratan Lal Kashyap, Senior Vice-President - Procurement, GR Infraprojects.

“Such exhibitions help us gather information that can be utilised for our future purchase strategy,” agrees Gaurav Tiwari, General Manager - Mechanical, Dilip Buildcon.

For his part, Singh believes the cancellation will not have an impact on sales, though it will certainly be a missed opportunity to showcase technology, which may now have to be managed by different means.

One reason the event was cancelled, according to Singh, is that many customers would have not been able to visit, thus defying the purpose of such an event.

“Companies will now focus on alternate plans, such as direct marketing and local roadshows or demonstration or displays with a limited number of customers,” 

says Bansal.  

In Singh’s view, other means, such as digital technology, online promotion or demonstrations at a particular location, will be alternate ways to promote products.

The fact remains that some companies hold on to their procurement orders until they get a chance to visit such exhibitions and carry out a comparative study of products on display.

Adding to this, Kashyap says, “As end-users are also part of this show, civil engineers often visit the exhibition to gauge their utility and other technical aspects.” 

While Tiwari affirms that such shows are important for technological exploration, he says the cancellation will not have a major impact on the procurement plan. “The company will continue with its procurement plans as it mostly procures through one-on-one interactions, not exhibitions.”

From a commercial perspective, Kashyap explains, “We buy equipment depending on the budget. As the expo is a place for display and we have limited time, we don’t necessarily finalise a deal there. The strategy is to look at things, talk to people, ask them for a proposal and call them later to finalise. This visit helps us decide on equipment, but buying comes later.” 

“If I need any equipment in the absence of the show, I would call all the competitors for their offers,” adds Kashyap. “Now, as COVID-19 is in control, we have started a few physical meetings. Otherwise, we do many virtual meetings as well.” He believes this is a good opportunity for domestic players to demonstrate their products and get on a par with international players.

We took the decision after considering all the facts as we know them and our responsibility towards our stakeholders and the global business community. Both uncertainty regarding safety of stakeholders and exhibitors and return on investment pushed us to take this tough call.

The decision came after in-depth consultations with partners and stakeholders across the industry and a comprehensive study of the market. We ascertained that the organisers’ goal to offer all participants optimal conditions for a successful trade fair would be difficult to implement. We thank them all for their constant support and guidance.

The decision was the need of the hour to protect exhibitors, visitors and partners. We took a sustainable approach over prioritising gains, especially during the extraordinary circumstances posed by the pandemic. We are certain that the next edition in 2022 will happen with much more zest and vigour and many more business opportunities.