Roads, irrigation and urban infra are driving growth
ROADS & HIGHWAYS

Roads, irrigation and urban infra are driving growth

DK Vyas, CEO, Srei Equipment Finance, speaks on the equipment market and its key growth drivers.

One pathbreaking offering: Most equipment we finance has inbuilt sensors. It is either inbuilt by the OEM or we put one in. The second technology is data analytics, which helps one to assess risks better. Analytics helps devise new products, assess them proactively and find solutions for our customers and OEM partners. Besides, we have invested in iQuippo, a platform that brings together all stakeholders, such as OEM partners, financers, stakeholders, customers, etc. 

Demand drivers in 2019: Three key sectors – the roads sector, irrigation and urban infra – are driving the growth of the construction equipment industry. Around 60 per cent of the equipment is earthmoving equipment, which is multi-usage and can be used for roads, irrigation, urban infra, etc. 

Announcement contributing to the company’s growth in 2018: iQuippo is one area where we are thinking of expanding. Our whole strategy has been to use technology to expand the marketplace. 

Challenge for the company in 2019: After the IL&FS issue, the biggest challenge for finance companies and NBFCs is raising resources as most NBFCs were dependent on raising resources from banks. We have always believed in diversifying our liability side to reduce dependency on banks and simultaneously focus more on raising resources through ECBs, bonds, assignments, etc. Diversification is an ongoing endeavour for us.

Key strategy to success in 2019: Our strategy has been to keep developing innovative product offerings and continue to make the business model robust enough so that our customer gets a lot of value. 

Recommendation for growth of the construction equipment market: We are a part of ICEMA and have been talking about sustainable growth for quite some time now. Sustainable growth will come from environment-friendly equipment. We have recommended the CEMM Act, on behalf of ICEMA, to regulate construction equipment.
 

DK Vyas, CEO, Srei Equipment Finance, speaks on the equipment market and its key growth drivers. One pathbreaking offering: Most equipment we finance has inbuilt sensors. It is either inbuilt by the OEM or we put one in. The second technology is data analytics, which helps one to assess risks better. Analytics helps devise new products, assess them proactively and find solutions for our customers and OEM partners. Besides, we have invested in iQuippo, a platform that brings together all stakeholders, such as OEM partners, financers, stakeholders, customers, etc.  Demand drivers in 2019: Three key sectors – the roads sector, irrigation and urban infra – are driving the growth of the construction equipment industry. Around 60 per cent of the equipment is earthmoving equipment, which is multi-usage and can be used for roads, irrigation, urban infra, etc.  Announcement contributing to the company’s growth in 2018: iQuippo is one area where we are thinking of expanding. Our whole strategy has been to use technology to expand the marketplace.  Challenge for the company in 2019: After the IL&FS issue, the biggest challenge for finance companies and NBFCs is raising resources as most NBFCs were dependent on raising resources from banks. We have always believed in diversifying our liability side to reduce dependency on banks and simultaneously focus more on raising resources through ECBs, bonds, assignments, etc. Diversification is an ongoing endeavour for us. Key strategy to success in 2019: Our strategy has been to keep developing innovative product offerings and continue to make the business model robust enough so that our customer gets a lot of value.  Recommendation for growth of the construction equipment market: We are a part of ICEMA and have been talking about sustainable growth for quite some time now. Sustainable growth will come from environment-friendly equipment. We have recommended the CEMM Act, on behalf of ICEMA, to regulate construction equipment.  

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