Wednesday, September 23, 2020

Table of Contents for Cover Story

Interaction- Rajinder Raina, General Manager- Marketing,Escorts Construction Equipment

We remain # The Preferred One for the Buyer

Although global OEMs are playing in the Indian ECE market, they are yet to catch up with their Indian peers. One crucial difference between them and Indian OEMs who are global players is the ‘Appropriate Technology’ offered by the latter, completed suited to Indian conditions in terms of affordability, which depends on an appropriate level of technological sophistication. Escorts beats its global rivals on that front. In an exclusive interview to CONSTRUCTION OPPORTUNITIES,

RAJINDER RAINA, GENERAL MANAGER - MARKETING, ESCORTS CONSTRUCTION EQUIPMENT, underlines the reasons why they remain the most preferred ECE OEM in the Indian market, and suggests corrections required in India’s manufacturing policy. It is also notable that the company is committed towards the Operator community, to improve their lot by converting them into equipment owners as part of their CSR.



Tell us about your Manufacturing Base in India. Do you practise Lean Manufacturing? What is your current level on the Six Sigma (6σ) scale?

Escorts Construction Equipment has its manufacturing base at Ballabgarh in Haryana. It’s a green field project that started off on the modern manufacturing procedures and systems. The capacity of the plant is good enough to deliver or to cater to the demand projected for the year 2018-19, which would be surpassing the best ever industry figures of 2011. On the quality front, we are at an advanced stage of completing theimplementation of TPM. We are passing through the various stages with total satisfaction and as per the targeted deadlines. We have engaged best of the global agencies to help us on procurement material and lean inventory management. It helped improve the quality of the equipment, consistency, and thereby helped improve the bottom line.



Green environment friendly technology in your products.

All our products are ARAI homologated and conform to the norms of emission, operator safety, etc. Asan active member of ICEMA, we are at the forefront of taking the emission norms to the next level and are working with our engine suppliers to be ready with machines fitted with engines conforming to the latest norms.



Major demands made by end-users of your equipment. Is there a shift from initial cost price to TCO in Buyer Decisions? Importance of Aftermarket Services.

The buying patterns have definitely changed, to the extent that its no more the cost of capital only. Today, the customer is much smarter and he understands the importance of TCO and does the evaluation for a 3-5 year basis. The equipment manufactures like Escorts have all along been talking about things like fuel consumption, productivity, cost, and ease of maintenance, and assured uptime of machines. The wide spread of Escorts Dealer network assures quick response and low turnaround time of equipment.



Do you practice ‘Make in India and Sell globally,’ use your India manufacturing base to supply the global market.

Escorts isthe oldest manufacturer of material handling and earth moving equipment in India. All the products are designed and developed in India. We cater to markets like Nepal, Bangladesh, Bhutan and SriLanka. In the last few years, we have made great in roads into Middle East, Latin America, and African Countries. We are targeting around 20 per cent of our topline from exports in the coming 2-3 years time. The progress achieved this year is far more than the target we had initially taken up. To that extent, it is a so far so good situation.



Your assessment of India’s manufacturing policy, to what extent does it foster growth of your company.

One correction that needs to be incorporated is the rate of import duty on aggregates and completely built up units. There has to be a differential which incentivises manufacturing in India rather than importing a complete machine. The machines which are not made in India could be levied the same duty as the aggregates. The manufacturing in our industry needs patronage to the extent that imports get reduced and exports also need to be better incentivised which will give a flip to manufacturing sector in India.



Impact of GST on your company.

GST as a transformational tax reform has affected our industry in a uniform manner. July and August were bad, however, come September and things have started looking up. Things are improving fast on perception, understanding, and implementation.

The sales figures of October were really impressive, and November 2017 promises to be big. It will only improve from here on as the thrust on infrastructure development continues.



Your outlook for the Indian ECE market. Which sectors will be the major demand drivers?

The industry has moved a fair distance from demonetisation and GST, and government has its foot on the gas therefore acceleration is a given. I expect a growth of 12-15 per cent on a CAGR basis for the coming 2-3 years. We at Escorts are all geared up along with our vendors and suppliers to grow at 15-17 per cent. Roads, metros, urban development, smart cities, etc., will be prime movers of demand.



As an exhibitor, what are your expectations at EXCON ’17?

We remain ‘The Preferred One’ for the Buyer and the User. We understand business of the customer and the engineering fundamentals to serve the industry through our wide range of equipment through a robust and constantly growing dealership network. We stay committed to operators to upgrade their skills, and improve their lot to convert them into owners of the equipment, which is a part of our CSR.

Cutting edge Smart Technology featured in your machines. Such as; engine control, SCADA, PLC, Telematics, IoT, etc. Also Safety and Operator Comfort features in your machines.

Escorts offers products which are ether totally home grown like the complete range of PnC and TRX range, or products with technology imported from the pioneers of the industry and fully adapted and absorbed to develop products which are appropriate for Indian conditions. Our backhoe loader is the only one which is fully designed and developed in India. Escorts were the first one to offer telematics. We keep technology within the limits of Operator and user friendliness because the market is still not prepared for the very high-end technology as we don’t have operators trained enough to manage it, nor is the buyer ready to pay for it. Therefore we offer technology which conforms to all the statutory norms and standards, and offers value for money.

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