+
We take on the complete job, from maintenance to operations
POWER & RENEWABLE ENERGY

We take on the complete job, from maintenance to operations


- Ranjit Ravindran, Head of Business-Mining, Voltas

Voltas’ Mining and Construction Equipment (M&CE) division dates back to 1954, to the post-Independence era that required rapid industrialisation. This was when Voltas was incorporated and the earthmoving, mining and agricultural machinery of the company came into existence. 

In fact, Voltas M&CE was among the first engineering product and service companies to introduce earthmoving and infrastructure machineries in India. 
Ranjit Ravindran, Head of Business-Mining, Voltas, shares more in conversation with SHRIYAL SETHUMADHAVAN.

How do you see the current mining scenario in India?
The mining scenario is picking up with the public-sector companies doing well. All PSUs, be it NTPC, Coal India, SAIL or NMDC, are bound to increase production, which will impact the buying spree of mining equipment.

Coal India’s targeted production by 2020 may take two to three years more…
Renewable has taken off in India. A recent report mentions that the peak power demand in the country never created a crisis. What makes headlines is the coal crisis and power plants about to shut. So, many companies are getting imported coal and stock levels are better. As there is optimum utilisation, there is no real pressure now to deliver that. However, as coal will be the mainstay of energy for another 20 years, it is expected that Coal India will ramp up production. So if the targeted timeline extends from 2020 to 2023 or 2024, it will not impact Coal India.     

How has the last year been for Voltas Mining?
Our business division is a bit different from our peers or competitors. We have gradually shifted from a pure dealership business model like Gemco or Gainwell, which is for Caterpillar in India, or L&T, which is for Komatsu. So we have actually graduated from an agency business to sales, service and spares. That is a triple S business model to more of an independent service model. We are more into service contracts generating revenues through deliverables. The order books are related to the amount of service generated. Everything is proportionate to the risk taken and investments made. Our focus is to give serviced deliverables because these are big-ticket projects that come with lifecycle contracts for machines. We will provide all technical support, manpower and commissioning services. So our revenues are limited to that. We are a primary contractor to ensure deliverables. If the equipment is not maintained as per performance parameters, we are responsible.

What are the challenges faced in this business model?
Retention of skilled manpower is the biggest challenge. Also, it is not easy to develop skills because it is basically on-job and factory trainings; it takes time to deliver these. Also, we are not able to leverage the full potential of the business because our portions are limited to the scope of what we are doing. But that is commensurate with the risk we are taking and in line with our strategy. Hence, our balance sheet is stronger than our peers. 

What will be the company’s biggest strength in the future?
Earlier, we were working with principles or business partners; today, we work closely with our customers. In the next five to six years, we see our business model becoming more robust. The industry has the equipment but lacks the skills. We see this as an opportunity down the line when PSUs offload the operations of machineries to companies like us, where we take on the complete job, from maintenance to operations.  

- Ranjit Ravindran, Head of Business-Mining, VoltasVoltas’ Mining and Construction Equipment (M&CE) division dates back to 1954, to the post-Independence era that required rapid industrialisation. This was when Voltas was incorporated and the earthmoving, mining and agricultural machinery of the company came into existence. In fact, Voltas M&CE was among the first engineering product and service companies to introduce earthmoving and infrastructure machineries in India. Ranjit Ravindran, Head of Business-Mining, Voltas, shares more in conversation with SHRIYAL SETHUMADHAVAN.How do you see the current mining scenario in India?The mining scenario is picking up with the public-sector companies doing well. All PSUs, be it NTPC, Coal India, SAIL or NMDC, are bound to increase production, which will impact the buying spree of mining equipment.Coal India’s targeted production by 2020 may take two to three years more…Renewable has taken off in India. A recent report mentions that the peak power demand in the country never created a crisis. What makes headlines is the coal crisis and power plants about to shut. So, many companies are getting imported coal and stock levels are better. As there is optimum utilisation, there is no real pressure now to deliver that. However, as coal will be the mainstay of energy for another 20 years, it is expected that Coal India will ramp up production. So if the targeted timeline extends from 2020 to 2023 or 2024, it will not impact Coal India.     How has the last year been for Voltas Mining?Our business division is a bit different from our peers or competitors. We have gradually shifted from a pure dealership business model like Gemco or Gainwell, which is for Caterpillar in India, or L&T, which is for Komatsu. So we have actually graduated from an agency business to sales, service and spares. That is a triple S business model to more of an independent service model. We are more into service contracts generating revenues through deliverables. The order books are related to the amount of service generated. Everything is proportionate to the risk taken and investments made. Our focus is to give serviced deliverables because these are big-ticket projects that come with lifecycle contracts for machines. We will provide all technical support, manpower and commissioning services. So our revenues are limited to that. We are a primary contractor to ensure deliverables. If the equipment is not maintained as per performance parameters, we are responsible.What are the challenges faced in this business model?Retention of skilled manpower is the biggest challenge. Also, it is not easy to develop skills because it is basically on-job and factory trainings; it takes time to deliver these. Also, we are not able to leverage the full potential of the business because our portions are limited to the scope of what we are doing. But that is commensurate with the risk we are taking and in line with our strategy. Hence, our balance sheet is stronger than our peers. What will be the company’s biggest strength in the future?Earlier, we were working with principles or business partners; today, we work closely with our customers. In the next five to six years, we see our business model becoming more robust. The industry has the equipment but lacks the skills. We see this as an opportunity down the line when PSUs offload the operations of machineries to companies like us, where we take on the complete job, from maintenance to operations.  

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?