Sandwiched between the price surge and the infrastructure boom, Vishal Sharma, Business Partner, Reach International, talks about the rental equipment scene in the Indian equipment market. What’s driving rental penetration in India? The surge in rental demand for access work platforms (AWPs) and material handling equipment (MHE) in India is both due to an increase in demand and a shortage in supply. There is huge demand especially post-COVID, with investments pouring across sectors – both by the government and private companies. What is the rental market for construction equipment? There is a huge demand for rental equipment throughout the CEQ category. It is the best time in the last decade for a rental company in terms of rates, timely payments, and higher utilisation rates. It is also a good time for a global player to enter the domestic market as well as for domestic players to expand their fleet size. What innovations do you offer? Keeping environment and cost in mind, most big companies are making the shift towards battery-operated machines. Clients have welcomed the lithium-ion forklift with open arms. Apart from being environment friendly, lithium-ion helps save battery costs for two to three-shift operations. Additionally, OEM Hyundai provides additional benefits like maintenance-free machines and long-term warranties. Tell us about equipment finance. Equipment financing banks and NBFCs are vital stakeholders of a rental organisation. The last two years have been a rollercoaster ride for all. With low demand and an uncertain future, financing companies have been a great support by offering MSME loans and other ECLGS programmes guided by RBI. Within a year, there has been a huge demand for machines which has again been supported by financing companies with funds and good rates. Be it LC, domestic credit, suppliers’ credit, and more, banks and NBFCs have a product for all. The base is all set for the huge demand for equipment in near future and beyond that too. How is renting equipment better than buying it? There are more advantages to getting a machine on hire than purchasing it. Whether it is a construction of a new factory, airport, or some site, or be it running a plant or warehouse, timely completion and delivery are the keys. To achieve that, it is a proven fact that rental companies have always outshined. Entrepreneurs like us have always believed in going the extra mile in satisfying their customers with the best service and high-quality equipment. Good quality updated equipment and timely services help in the completion of a project and achieving daily targets. A big advantage of getting equipment on rent is also saving on the capital expenditure. What will be the scenario of the industry in 2023? Where does your company foresee itself? There has been a paradigm shift in the construction equipment rental industry. Profession approach, after-sale or after-rental services, and quality equipment with safety features have become a must for an equipment provider to be an industry leader. Reach International has always practiced a safety-first approach and has open ears for customer feedback. With Hyundai (MHE) and Genie (AWP) supporting us in training our engineers and day-to-day guidance for achieving safe work culture, we can proudly say that we are at the top when it comes to customer satisfaction.