Page 32 - Construction_Opportunities_Oct_2026

INTERACTION POST BAUMA CONEXPO INDIA

challenge. What is the customer’s challenge? Customer’s being a Caterpillar inherent product, it’s able to perform as a
challenge is deteriorating operating profit margins across, you mining excavator, but deliver lower fuel, backed up by all our
know, infrastructure segment as well as mine. Whichever customer commitments, back to work commitments and customer service
you talk to, they are, there’s fierce competition, there’s tendering agreements, etc. So, that’s the sweet spot for the customer that
process, and they’re all outbidding each other. So, what’s we make.
happening is they have a requirement for lowering their cost per
cubic meter or cost per hour. Comparing India to the other markets, where do you feel, CAT,
So, that is where, beyond the iron, any solution that, you know, what’s your vision for India?
manufacturer or dealer can provide is invaluable to them. When (AG) So, we’ve been present here for a long time with
they’re bidding for a job where they know it’s going to be so manufacturing, with a good base. Also, for export, as much for
competitive, if they know that my downtime will be only limited the local market. I think the local industry in the last few years has
to this much percentage, my fuel will be limited to only this been really growing very, very much. And now, if you look at the
much percentage, my EMI is going to be limited to this much products we launched last year, for example, those are tailored
percentage, my PM preventive maintenance cost per hour with products for the India market. You’re going to see more and more
the CVA is going to be this much, that’s what they can lock in and of us really understanding the requirements of the customers here,
then they can have their most competitive bid. What our solutions how they work with the machines, what sizes, what economics they
provide is that ability to lock in that cost per hour for the customers. have, what are their variables, and build products that respond
So, hence, all these, it’s like product and around the product, this to this. So, it’s also helping that India, at least the medium-sized
suite of solutions. So, he’s well aware of what is going to happen industry, is the largest in the world right now, a single country.
and at what point he can bid and take the contract. Yes, exactly. So, we’re seeing this evolution of the opportunity growing. So, for
And that’s why we try to, like work with them much in advance. us, I would say medium- and even short-term, we’re looking more
So, now, if you look at the mining coming to this 355 excavator, and more at being present here locally, developing products for
why did we introduce this excavator, we already have larger this industry, and responding to the local customers. Quality-wise,
excavators than this, which are already there. But the same whatever products are being manufactured in India, are you also
phenomena is happening in the mining. Coal India is doing less exporting it to other countries from here, in terms of the Southeast
and less work. They are outsourcing more to private contractors. Asian countries, or which markets are receptive to your products
They are picking up these tenders at a fixed cost per cubic meter. now? So, we do have a bit of an internal name for the developing
And then, you know, fierce bidding happens in which they have countries, which is, we call them the growth markets. So, for
a rate. Now, they need to meet that rate and in the mining, example, if we take the mining trucks, the facilities here in India
the projects are much longer duration. They are like anywhere would serve the export for those mining trucks. Excavators right
between 10 years to 30 years of operation. Now, how can you now, we’re only serving the local market. With what neighbouring
have a committed cost per cubic meter for 30 years of operation? countries, like Nepal? And, of course, the neighbouring countries.
Unless you are working with a partner, very strong partner, who If we look at what we call the building construction product, that
knows what they are doing and who have the ability to back also is exporting to what we call the growth markets. So, it will run
up the machine. So, this 355 is our effort to optimize that cost anywhere from Latin America, Africa, Middle East, Central Asia,
per cubic meter for customer. It’s like a very large excavator for and the Asia-Pacific region, right? So, Indonesia, and Thailand,
infrastructure, but it’s the entry level for mining. So, because of and so on.

32 CONSTRUCTION OPPORTUNITIES|OCTOBER 2026