Road Ahead for CE Industry

28 Oct 2024 CW Team

India’s road network has grown

59 per cent to become the second largest in the world in the last ten years. National highway construction in India increased at 9.3 per cent CAGR between FY16-FY24. With the government’s continued focus on infra-led growth, construction equipment (CE) industry is also witnessing robust demand. In fact, in FY24, the industry witnessed about 26 per cent growth compared to previous year.

Ranjan Sharma, Senior Director – Large Corporate Ratings, CareEdge Ratings, states, “There has been a significant focus of the Union government on infrastructure development in the country, as a result almost all segments like roads, ports, bridges, etc. are doing well. If one looks at performance of the top 18-20 listed EPC companies, their order books have been consistently growing YoY basis. Road construction pace in India in FY24 was one of the highest (i.e. 34 km per day compared to 28 km per day in the previous year), as large number of projects were awarded in the preceding two years. In FY24, the CE industry, which plays pivotal in infrastructure development, grew by 25 per cent (in terms of unit sold) led by earthmoving, material handling, as well as road CE.”

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