Monday, September 25, 2017

Table of Contents for Equipment Sphere-Pre bC India





Equipment Sphere-Pre bC India

Revival platform

CONSTRUCTION OPPORTUNITIES presents the industry mood in the run up to the third edition of the international construction and earthmoving equipment fair bC India at Noida.

The infrastructure focused approach of the Modi-led NDA government has opened new hopes of growth opportunities for the players involved in the construction equipment sector thus far facing debilitated business owing to delays in project execution.

Manufacturers are now optimistic of the scenario soon brightening up. The bC India 2014 international trade fair for the construction and earthmoving equipment industry to be held in Noida in December has introduced an element of optimism.  

There is an air of expectation as the equipment industry eagerly awaits the third edition of the international event’s India edition which will be held at a new location – Noida, outside New Delhi, which will be a one-stop platform for the various players to showcase brand new innovations in terms of products and technologies under one roof.

According to Messe München International, the hosts of bC India, relocating the expo near the national capital, close to the decision-making centre of the Indian economy will be of strategic importance. The choice of the new fair ground, in the Delhi region, was dictated to aspects like:

Location of the branches of most large and medium sized companies 

Major infrastructure projects being planned (e.g. Faridabad, Haryana, Greater Noida)

Interest for visiting the exhibition expected to be generated from government buyers owing to its proximity to Delhi

Ambitious projects being realised in the vicinity such as the Delhi-Mumbai Industrial corridor, a state-sponsored industrial development project of the Government of India aimed at developing an industrial zone spanning across six states in India

 

Growth prospects

The increasing focus towards fast-tracking the pace of infrastructure sector is expected to accelerate the growth pace of domestic construction equipment industry by 12 per cent. The opening up of Indian construction and infrastructure on global levels has made these sectors extremely competitive, involving players operating under distinct expertise. This increasing competitiveness demands to design and build equipments as per Indian requirements and has distinctive export business approach.

The last financial was a really challenging period when market sentiments were pretty dismal in view of the political climate and the consequent lack of activity.  The situation at the ground level barely showed any improvement though there were some public pronouncements from the authorities on initiatives to revive the economy and industry. 

It is easy to see now that with the new government’s avowed emphasis on fast tracking projects ECE manufacturers and dealers are optimistic of business opportunities opening up through the bC India platform at the new venue. The ambitious agenda of building 100 Smart Cities and the recently launched Clean India Campaign which involved cleaning up rivers will open up more scope for the CE sector.  The construction of national highways and creation new transport infrastructure will further improve business prospects for the equipment manufacturers. The overwhelming verdict is that the construction equipment (CE) market will pick up over the next 12 months thanks to the removal of project bottlenecks.

Kobelco Construction Equipments is now firming up their plans to utilise bC India to display their strengths. The equipment major is looking to showcase its mining machine capabilities and customer support activities.

“Bauma offers an excellent platform for show-casing the best and the latest in the market. bC India has provided us with a good opportunity to reach out to the market in India. Based on our experience in the past, we can consider having bC India as a regular event in our marketing calendar,” avers Vikram Sharma, Managing Director, Kobelco.

Companies like Wirtgen India plan to utilise the expo to showcase their new range of innovative cold milling and recycling technologies. “New Delhi is a favourable location as maximum number of infrastructure projects are emerging from this part of the country. Moreover, our customers often visit New Delhi for client meetings and this opportunity enables them to visit the exhibition as well,” says Wirtgen India Ramesh Palagiri, Managing Director, Wirtgen.  

The pace of growth in the equipment industry is still struggling to regain its lost glory. The excavators business has gone down by about 15 per cent and road machineries is almost flat as against figures marked in the same corresponding period a year ago. “As against 2013, the year 2014 has not been yet favorable and has been posing flat results. In fact the growth pace of few type of equipment has been descending” opines AM Muralidharan, President, Volvo CE. He however feels optimistic of things improving with bc India 2014. “The new location at Noida is much better since most big ticket project contracts are coming up mostly in the northeusinern region. He feels with new market opportunities curiosity towards products with cost effective technologies and increased productivity will only increase further.  

However, despite all prevalent market glitches equipment manufacturers maintain an optimistic approach “Ascending growth in the realty sector, increasing coal production and mechanisation of mining operations will boost growth in the country’s equipment industry,” says Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants. He further adds, that the residential construction industry is expected to grow from a CAGR of 15.3 per cent by 2017; and India successfully contributes 10 per cent of the global CE market.

Expressing similar views on growth revival, the industry body Indian Construction & Equipment Manufacturers Association (ICEMA) also outlines the prospects of Indian ECE market to grow at 20 – 25 per cent to reach 3,30,000 – 4,50,000 unit sales by 2020.

The bC India show in Noida, coming as it does at a time when Indian infrastructure is set for revival, can only inject much needed optimism.

 

Bauma offers an excellent platform for show-casing the best and the latest in the market

—  Vikram Sharma, 

Managing Director, Kobelco

 

 

New Delhi is a favourable location as maximum number of infrastructure projects are emerging from this part of the country

—  Ramesh Palagiri,

Managing Director, Wirtgen India

 

 

With new market opportunities curiosity towards products with cost effective technologies and increased productivity will only increase further

—  AM Muralidharan,

President, Volvo CE

 




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