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INTERACTION MINI EXCAVATORS

country ensures to serve customers at any location in the shortest gain popularity we expect the market to mature attracting new
time possible. All our authorized dealerships provide customers customers and thereby the expansion of the rental market.
with warranty and post-warranty services at their job sites. Many of As with the broader excavator market, organized rental is currently
our dealerships also have state-of-the-art hydraulic workshops and not popular due to the widespread availability of machines across
machine care facilities where the machines can be repaired and the country, the difficulties in contract enforcement, and payment
overhauled. The cost of maintenance and repair of our machine collection that favours local hirers with their foothold in their area
is very low which is a major differentiator. of operation.

Which sectors would be the major demand drivers for your mini Future outlook from the industry perspective and company?
excavators going forward. The CE industry rapidly recovered through FY 2021-22 despite the
We see the rise in demand for Mini excavators in Agriculture due to Covid-19 2 wave-induced lockdowns in Q1 of the year.
nd
the increase in mechanization, However, the Backhoe loader segment witnessed significant de-
Civic utility jobs, and Government projects like Har Ghar Jal. Due growth due to the impact of emission norm change last year.
to compactness and versatility, these machines find a lot of usage This year – as explained earlier – the government has embarked
in urban spaces where there is a lot of congestion due to traffic. on a massive Capex program with a growth of 35%. The Road and
Highway ministry is targeting the construction of nearly 18000km
Your strategy to play in a price-sensitive market. of highways. Allocation to Jal Jeevan mission for Har Ghar Jal has
While Indian customers are value-oriented, they are also smart been increased to 60000Crs. Similarly, there is increased spending
enough to understand and appreciate the life cycle cost. At Tata on Railways, Ports, and Airports. The focus on rural infrastructure
Hitachi, our customer-centric approach helps us to play in the continues with increased allocation to PMGSY. Rural housing – PMAY
price-sensitive market, where we highlight to customers the fuel – is another focus area.
efficiency, low operating costs of our machines, and after-sales AMRUT & Metro has seen record allocation. All this will aid the growth
service support, which are enablers to completing their projects of the CE industry this year.
on time and improving their profitability. This will be supported by the expected 4th successive good
monsoon & with increased vaccination coverage, the country will
Your outlook for the rental market for mini excavators be able to handle any future waves and Covid-induced disruption
Most of the machines are being sold in Kerala and are being used to the economy is unlikely.
in rental for varied applications. The sale in rest of the country is still Therefore, we are still expecting double-digit growth in the CE
mostly user-owned given the low-cost labour. As the Mini Excavators industry this year.

40 CONSTRUCTION OPPORTUNITIES|JULY 2022