04 August 2020

Interaction- Rajinder Raina, GM-Mktg, Escorts Construction Equipment

Garnering better market share, topping up with exports

 

Like horses in the wild west, BHLs are workhorse in the construction sector. And the most supple horse right now is the Jungli from Escorts’ stable. A veteran player in the BHL arena, RAJINDER RAINA, GM-MARKETING, ESCORTS CONSTRUCTION EQUIPMENT, discusses with CONSTRUCTION OPPORTUNITIES, market dynamics and their latest product launch.

 

 

Your assessment of the backhoe loader market in India, what are the cost/quality equations, sector challenges, and growth prospects.

Backhoe loaders remain the most selling earthmoving/construction equipment in India. This phenomenon is unique to India unlike any other developed or developing country in the world. In the year 2014-15, more than 21,900 units got sold, which rose to 30,900 units in 2016-17. The market during the current fiscal is projected at 32,000 units plus. Most of the brands available in the market offer a decent value proposition on cost, productivity, and quality matrix. The biggest challenge is the fierce market competition and low margins/price.
 

 

Range of backhoe loaders offered by your company, in terms of types, capacities, and applications. Do you offer equipment finance to prospective buyers.

Escorts offers two products, Escorts Digmax II, and Escorts JUNGLI. Digmax II is backhoe loader, 2 wheel/4 wheel drive, wherein multiple options on dipper arm and buckets plus all/any attachments including factory fitted rock breaker is offered.

Loadmax II is the loader only variant of the above machine which is used for handling of material.

JUNGLI is a 4 wheel drive backhoe loader with reinforced dipper arm and bucket that makes it take on tough strata and hostile working conditions/applications.

Escorts has a strategic tie up with a number of NBFCs and banks for financing equipment purchases. Our sales staff works in close coordination with their counterparts in all leading finance companies in their respective areas to ensure hassle free finance of the equipment.

 

 

Are you looking to launch any new variants to you existing product portfolio.

Escorts is the only manufacturer in India that offers two different models in the same specification range of backhoe loaders. During the next year or so we shall work towards expanding the geographical base of our products and a matching product support through a planned expansion of our dealer network.

 

 

Cutting edge technology used in your machines. What are the USP’s of your products vis-à-vis the competition.

Whereas Digmax II is gaining traction in the mainland, JUNGLI is creating waves and a niche in the segment which was almost a no go or avoidable applications like; murram, river bed sand and over burden soil in mines. The structure comprising boom and dipper arm are made out of special high tensile steel and the bucket is reinforced with special purpose imported Hardox steel. The 4x4 drive makes it the right BHL for underfoot conditions warranting added torque on all wheels. This gives JUNGLI an unmatched exclusivity when the going gets tough.
 

Detail us on your aftermarket services as a strategic differentiator.

Escorts brought in the first backhoe loader into India and was first to establish 3S dealership network. As volumes and geographical spread increase, Escorts matches it up with corresponding after sales setups. Today ECE, has more than 140 outlets with service setups in places like Leh, Siliguri, Gangtok, and deep south and west. Uptime of the machine is vital for the contractor and the hirer as the timelines and margins are limited.

 

 

Tell us about the indigenisation efforts undertaken by the company to meet market requirements. What is the company’s approach to implementing the ‘Make in India’ drive.

Except for some of the drive axles, rest everything is manufactured in house or sourced from Indian vendors. India is the biggest manufacturer of backhoe loaders in the world. We are exporting these machines to all neighboring countries, and the Middle East. Can safely say that backhoe loaders in India have come of age.

 

 

Future outlook for the industry and from a company perspective.

Escorts has the manufacturing capacity, two established models and the network to support, we just need to put machines in the market by garnering a better market share and top it up with exports which helps the margins as well. The task is cut out for the next few years.




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