Monday, April 12, 2021

Interview - Manojit Acharya (Demag Cranes & Components (India) Ltd)

We have invested time and resources in creating a product for the Indian market through our process cranes



Demag Cranes is the Material Handling vertical of Terex Corporation. Heading the business of Demag Cranes in India with complete P&L responsibility is MANOJIT ACHARYA, EXECUTIVE DIRECTOR, DEMAG CRANES & COMPONENTS (INDIA) LTD. Acharya offered CONSTRUCTION OPPORTUNITIES his assessment of the company’s material handling business




Tell us about the sales performance of your products in the materials handling equipment range through 2013-14 in view of the economic downturn and the fall of the rupee? Which were the most in demand?


Sales of our equipment are driven by a variety of industries, steel, power, infrastructure, automobile. Last year saw most these industries in a trough and this impacted us adversely. However, our efforts to complete localisation projects in our process cranes and light modular cranes ensured that we remained competitive and were able to bag a few good contracts.  Over the past few years we invested time and resources in creating a product for the Indian market through our process cranes. We started this journey in 2008 and have seen a phenomenal growth in process cranes. We are now working with most of the steel majors where equipment supplied by us is working well. The Rupee has been volatile through 2013 and the fluctuation did impact us as many others who import components.




Which were the new products introduced in the market – and how have they been received? 


We introduced the BAS range of chain and rope hoists. The DC BAS range of chain hoists and DR BAS rope hoists were introduced in 2011 and the BAS crane kits was introduced a year later. Both products have been accepted well by the market. The BAS (or basic) range of products has been introduced specially for developing markets like India. The BAS family of products includes chain hoists, rope hoists and cranes. For duty conditions up to 2 M, we have introduced chain hoists and rope hoists that meet most industry requirements. These products have simple electrical controls, but are designed and built to be as rugged as any other Demag product.

The BAS ranges of products are essentially targeted at applications which are workshop duty. Since they are designed to be simple, automation and complexities are lesser. They are easy to use and service. These products are also very competitive in the Indian scenario and have helped us gain market share in chain hoists and crane kits.




How do you expect the market to pan out in 2014-15? Tell us about your plans for the material handling section? 


We expect the markets to remain at the same level as 2013 through calendar year 2014. Hopefully, with a new stable government in place at the centre and a few states, we will see some much needed policy action which will lead to a positive sentiment and industries will start loosening their purse strings. At this point though this is wishful thinking. In the meantime though, we continue to work on streamlining and managing our costs better, to remain competitive and relevant.




Which are the new product ranges you are planning for launch in the current year as per market trends, investments planned, and tell us about their key features?


We do have plans to introduce variations of some of our products as well as certain new products. It is still early days and we will share more details soon.




Do you see demand picking up and what will be your strategy to deal with market challenges?   


The slack in the market currently is on account of two major factors, uncertainty in European markets and policy paralysis within the country. We primarily serve the South Asian markets hence demand for our products will pick up only when there is clarity in domestic policy.  Clarity in Land Acquisition, Mining, Power and Infrastructure are critical to opening up investments relevant to us. Our business is B2B and a major portion of our revenues are driven by our own sales force. The Channel network is the backbone for our last mile connectivity to customers. Our channel partners stock parts and small modular cranes as well as chain hoists. We are strengthening this network to ensure our customers derive full value and have minimum downtime. We have over the past 2 years also tied up with other crane manufacturing and assembling companies who use Demag Crane Kits and components in their cranes. This network also helps us gain a larger footprint in the market.




Tell us about your plans to bolster your manufacturing capacity?


We set up a new manufacturing plant at Chakan in 2010 with the next 5 – 10 years in perspective. There is sufficient capacity available in our plant to cater to current requirements.




From a manufacturer/supplier’s perspective what are your expectations from the new incumbent government in terms of new policies that will benefit the materials handling sector?


There is a critical need to bring about land reforms, more clarity and improvement in the land acquisition act, speedy environmental clearances, check on inflation and volatility of the rupee, clarity in power sector and speed of implementation in infrastructure projects. Some of these may be related, moreover this not a wishlist but a need of the hour.





Crane karnaama

Leading Indian manufacturers of generators and turbines rely on Demag crane technology. Most recently, Terex Material Handling supplied TD Power Systems Ltd. with two Demag process cranes that have lifting capacities of 300 t and 60 tonne. TD Power Systems, one of the leading manufacturers of AC generators,  extended its production in Bangalore. With the aim of producing larger and heavier generators, it built a second plant with greater crane capacities. The handling of bulky components, e.g. stators and casings, as well as the transport of the completely assembled generators was handled by a Demag ZKKW double-girder overhead travelling crane. This crane, which has a span of 32 m, is fitted with a winch unit with a lifting capacity of 300 t. It travels on a 120 m crane runway which was also part of the order. A second crane hoist with faster lifting and lowering speeds supports the personnel in the precise assembly of components weighing up to 10 t. A second Demag process crane, which has a lifting capacity of 60 t and a 10 t auxiliary hoist unit, was installed in the new plant at the same time. Manojit Acharya, Executive Director of Terex Material Handling India, says. “Our customers for power generating machines need reliable crane systems which, with high performance and high availability, guarantee that their production processes run smoothly. That is why they put their trust in Demag crane technology. With the local engineering supplied by our Indian engineers, we offer technology based on extensive international experience and proven high standards. And with the comprehensive system support provided by our trained service technicians, we guarantee our customers maximum crane installation availability for smooth production processes.



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