17 August 2019

Table of Contents for Cover Story





Interaction- Sachin Nijhawan, Vice President & Business Head, Mahindra Construction Equipment

As far as BHL is concerned we are already number four

On the eve of EXCON 2017, in an exclusive interview to CONSTRUCTION OPPORTUNITIES, SACHIN NIJHAWAN, VICE PRESIDENT AND BUSINESS HEAD, MAHINDRA CONSTRUCTION EQUIPMENT, is very upbeat about the forthcoming trade fair and the progress of his company in the Indian ECE market.

 

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.

With launch of new telematics system, DigiSense by Mahindra Group, our equipment would soon be loaded with advanced technology to track performance on real-time. We are also carrying out various technological enhancements through improvisations in few key aggregates to enhance fuel efficiency and increase productivity of our machines, thus helping them deliver even higher output. With better technology and design enhancements, our equipment would be able to lower lubricant refilling requirement with extended service intervals, thus reducing the overall maintenance cost and improving total cost of ownership.

At Mahindra, we believe in providing value add to customers right from product development by utilising the best technology and hence our EarthMaster is a truly personalised machine with ergonomically designed cabin higher operator comfort, larger storage space, and new age digital cluster that helps the operator to identify and trouble shoot problem by reading messages and hearing warnings in 6 different languages.

 

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.

Mahindra Construction Equipment has always strived for providing the best to its customers. It is for the same reason that we came up with our backhoe loader after 4 years of research and over 20,000 hours of machine testing. This resulted in better technology and design enhancements enabling our equipment to lower lubricant refilling requirement with extended service intervals, thus reducing the overall maintenance cost and improving total cost of ownership. Moreover, our indigenously developed and proven Mahindra DITEC engine offers best-in-class fuel efficiency which implies saving of 10 per cent in standard evacuation cycle to the customer. We have also been able to identify segments which do not need standard features of backhoe and offer variant which is value for money them. Aftermarket is important for the sector and hence we are present across the country in over 400 districts through our service network of more than 60 dealers.

 

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

Being part of Mahindra Group, we harness the synergy within the Group to cater to global market needs. India being the flag bearer of the developing world, we have inherent understanding of the demands of other developing markets. We have a comprehensive plan to target selected geographies of the world which have synergy with us. Mahindra Construction Equipment is already present in SAARC nations as Nepal, Bhutan and Bangladesh. In fact, in Nepal we have over 10 per cent market share. Also, we would soon look forward to expand our presence in other geographies of Africa, Asia, and Middle East, in near future.

 

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

The Planning Commission estimates total infrastructure spending to be about 10 per cent of GDP during the 12th Five Year Plan (2012-17), up from 7.6 per cent during the previous plan (2007-12). Investment in infrastructure and road building sector with projects like Bharat Mala are the main growth drivers for the construction equipment industry. With these investments set to go up, demand for construction equipment is expected to rise and the equipment sales are estimated to expand at a CAGR of 6.2 per cent. Being recent entrant into the industry, we intend to capitalise on this growth by providing superior products that offer customer good profitability over the life cycle.

 

What distinguishes your products vis-à-vis the competition? What is your current market share in all your product categories?

At Mahindra, we believe in providing value to customers right from product development by utilising the best technology. Mahindra EarthMaster is a truly personalised machine with new age digital cluster that helps the operator to identify and trouble shoot problems by reading messages and hearing warnings in 6 different languages.

With best-in-class fuel efficiency, lower lubricant refilling requirement, and extended service intervals, our machines provide savings to customer. Also, our customers are also entitled for 1 year unlimited hours of warranty. Moreover, Mahindra also has tie-ups with various banks to allow customers to easily finance the machine at low down payment. With all these and much more, we have been able to create and provide unique proposition for our target audience.

 

Give us an understanding of your company’s performance this year and your outlook going forward?

As far as BHL is concerned we are already number four, we are ahead of players like ACE, Escorts, Terex, we are number four just after JCB, Case, and CAT. As far as loader is concerned we have reached respectable market share, close to four per cent. When it comes to grader we are not looking at market share at all, because as I said, grader is a highly unrepresented segment. If you are talking about just bookings and inquiries we have, it could be more than 15 per cent of market share, but that surely is not our aspiration. We are here to provide a solution where we don’t even know what the industry size will be after 4-5 years.

We are developing several other products in CE. One is earthmoving where we already have a product, road construction is second, and third is concrete movement, these are the 3-4 segments where we will be focusing. Between these sectors you will see more of our products coming in.

As you said, we have come into this sector late, and hence whatever products/solutions you will be seeing from our side will not be ‘Me Too’ products, because I can’t afford to launch a ‘Me Too’ product. All of them will be innovative products based on our knowledge of Indian market and our customer feedback.

 

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

With slew of projects being announced by government including Bharat Mala and others, the expectation is that this Expo in 2017 would have more vigor and optimism from the industry and the stakeholders.




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