Election Impact: Mining Equipment Sales to Decline
Equipment

Election Impact: Mining Equipment Sales to Decline

"The sales volumes of the domestic mining and construction equipment (MCE) industry are projected to experience a downturn in FY2025, following two consecutive years of robust growth. According to ICRA, after achieving a remarkable 26 percent growth in FY23 and 24 percent in FY2024, a decline of 12 to 15 percent in sales is anticipated for FY25, translating into volumes of 1.14-1.18 lakh units.

The anticipated reversal in this growth trajectory is primarily attributed to a slowdown in new project award activity during Q4 FY2024 and Q1 FY2025. The Model Code of Conduct, enforced during the Parliamentary Elections scheduled for April-May 2024, is expected to hamper project awarding activity, impacting the MCE industry.

The disruption in project awarding activity over the past two quarters has been noted. Ritu Goswami, Sector Head of corporate Ratings at ICRA, stated, ?Pre-election acceleration in project execution by the Government generated significant demand momentum for the MCE industry in the past two years. However, with the likely disruption in project award activity for two consecutive quarters during Q4 FY2024 and Q1 FY2025 amidst the Parliamentary Elections, and the monsoon-related effects on construction activities in Q2, the first half of FY2025 is anticipated to witness a moderation in sales.?

Despite the near-term challenges in the domestic MCE demand environment, the industry's long-term prospects remain promising. This is attributed to the sustained government focus on infrastructure development. Furthermore, a rebound in volumes is anticipated in H2, driven by a resurgence in new project awards starting Q3 and partially supported by pre-buying due to the CEV-V emission norm transition scheduled for January 2025."

The sales volumes of the domestic mining and construction equipment (MCE) industry are projected to experience a downturn in FY2025, following two consecutive years of robust growth. According to ICRA, after achieving a remarkable 26 percent growth in FY23 and 24 percent in FY2024, a decline of 12 to 15 percent in sales is anticipated for FY25, translating into volumes of 1.14-1.18 lakh units. The anticipated reversal in this growth trajectory is primarily attributed to a slowdown in new project award activity during Q4 FY2024 and Q1 FY2025. The Model Code of Conduct, enforced during the Parliamentary Elections scheduled for April-May 2024, is expected to hamper project awarding activity, impacting the MCE industry. The disruption in project awarding activity over the past two quarters has been noted. Ritu Goswami, Sector Head of corporate Ratings at ICRA, stated, ?Pre-election acceleration in project execution by the Government generated significant demand momentum for the MCE industry in the past two years. However, with the likely disruption in project award activity for two consecutive quarters during Q4 FY2024 and Q1 FY2025 amidst the Parliamentary Elections, and the monsoon-related effects on construction activities in Q2, the first half of FY2025 is anticipated to witness a moderation in sales.? Despite the near-term challenges in the domestic MCE demand environment, the industry's long-term prospects remain promising. This is attributed to the sustained government focus on infrastructure development. Furthermore, a rebound in volumes is anticipated in H2, driven by a resurgence in new project awards starting Q3 and partially supported by pre-buying due to the CEV-V emission norm transition scheduled for January 2025.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?