23 October 2019

Guest Article-Pradeep Sharma, President, Action Construction Equipment

ACE of Backhoe Loaders

Home grown global major Action Construction Equipment (ACE), has been playing in the Indian and global market for a long time. An OEM with long innings in the Indian market, its loaders are attuned and designed for local needs and local conditions. It’s also among the few loaders wherein all its aggregates are ‘Made in India’. PRADEEP SHARMA, PRESIDENT, ACE, details more about their backhoe loaders.

 

India’s infrastructure i.e. road, railway and port construction, and real estate, have been allocated Rs. 3.96 lakh crore in the 2016-17 Union Budget. Backhoes being the most versatile construction equipment will in our opinion get benefitted immensely with this increased thrust on Infrastructure by the Government. It is logical to expect backhoe markets to grow at-least 20 per cent in 2017, considering the facts that it is the most critical and widely used equipment in almost every segment of Infrastructure, Mining, and other Industrial activities.

 

In backhoes over the last 10-12 years, there is hardly any change in terms of Tonnage, Capacity or Technology. There may be several reasons for this as normally market moves to higher tonnage/capacity, but primarily due to its pricing. Backhoes have a limitation as beyond a certain price they become unviable against loaders and excavators.

 

 

Almost all the international players in backhoe have their manufacturing facilities in India and are using aggregates manufactured in India only. We in our backhoes use internationally compatible and best suitable and acceptable aggregates like engines from Kirloskar, transmission from Carraro, hydraulics from David Browne, Walvoil etc., and with the kind of all India network of our well-equipped Dealerships and ACE’s own Regional Offices (more than 100 locations) and the most modern manufacturing facilities and CSIR certified R&D facilities, we are more than confident about our product Quality and ability to serve in the shortest possible time.

 

 

DEMAND DRIVERS

Infrastructure Segments like Roads, Railways, Ports, and Real Estate, where earthmoving and construction activity dominates can be the main catalyst for backhoe loaders. Similarly, increased focus by Government on rural development will help our industry immensely as most of the rural developments projects are related to Roads, Irrigation or Housing, and in all these segments, backhoes are the main construction equipment used.

With both the Government push for ‘Make in India’ and acceptability and the pride with which the Indian customers are responding to companies like ACE – which is probably the only construction company that can claim to manufacture all its products developed Indigenously without any help or tie-up with any international company.

Our Backhoe Division grew by 30 per cent in the last year and in all probability, trend will continue at-least in next 2-3 years.

 

 

VALUE FOR MONEY

ACE credibility in terms of providing reliable products which are technically compatible with the best at a reasonable price and backed by an extensive network of Dealers and ACE Regional and Area Offices are well established, and this gives our products the “value for money” tag which addresses all the three issues; of affordability, business expansion, and customer retention.

We have very efficient and contemporary R&D facilities capable of meeting all the challenges and our No.1 position in mobile cranes and tower cranes in India clearly established our capacity in terms of our adaptability towards the challenges of the market.

Most of Indian construction equipments manufacturers offer critical components like engines, transmissions and hydraulics from a pool of good recognised internationally known suppliers and we also offer most of our equipment with engine, transmission and hydraulic from reputed suppliers, besides this we also have engine manufacturing facilities in our Dudhola plant where we have started manufacturing engines for some of our models. Backhoes are primarily a very simple machine and our clientele is also mostly from hiring segment. Hence, the use of automation and Internet of Things are not that relevant. However, we do offer some telematics to some of our big EPC contractors.

Demonetisation brought immense liquidity in our banking system and this should help fast credit growth. Similarly, GST will simplify the taxation and movements of construction equipment within the country significantly and all this will definitely help the industry grow.

 




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