16 November 2019

Table of Contents for Post Excon 2017





Interaction- Jagdish Bhat, CEO, Ajax Fiori Engineering

We will be a global leader in Concreting Equipment

 

AJAX FIORI, a leader in Concreting Equipment in Indian market is a global leader in SLCM segment. In an exclusive interview to CONSTRUCTION OPPORTUNITIES, JAGADISH BHAT, CEO, AJAX FIORI ENGINEERING INDIA, looks back on their 25 years in India, and discusses their aspirations to become an Indian multinational OEM.

 

 

 

Congratulations on your Silver Jubilee in India.

 

 

It’s a great feeling to be driving the company further from where we are. 25 years back we started with a small humble beginning with about `79 lakh revenue in the first year, 25 years later we will be doing a turnover of thousand crore, which itself is a great achievement. Currently our major revenue  is from a single product that is the SLCM (Self-Loading Concrete Mixers), in which as of today we have become the second biggest in the country among concrete equipment manufacturers, and a global leader in SLCM.

 

 

 

 

Tell us about your manufacturing base in India. You already have three manufacturing plants in India, this fourth is your latest addition.

 

We are setting up our new plant in Doddaballapur which is a line production facility. The machine is produced on a trolley that is being moved along manually & at the new factory, where it is all conveyorised, the capacity and capability of that plant is such that we can produce one machine in half the time we had produced earlier. This is the level of automation where we have a sort of _ sh-bone arrangement and all the parts come in & move out to the next assembly through the conveyorautomatically. This new plant is dedicated only SLCMs and we are planning to expand our Gowribidanaur plant which will take up all the other machines.

 

 

 

Purpose of setting up this green field manufacturing facility.

 

Over the last 25 years Ajax Fiori has brought innovative and cost effective solutions to the construction industry. We see exceptional opportunities as the economy  strengthens in the near to midterm, and infrastructure environment continues to evolve for construction equipment  manufacturer like Ajax Fiori. Apart from our product range expansion, we have increased our distribution network and have over 80 touch points pan India. This new facility will help us add capacity and enhance our product portfolio to serve our customers need in future. This facility not only supports our commitment to India’s economy but it also presents a significant opportunity for our strong growth in India. Having foreseen the product’s sustainability across various applications and the increased demand across geographies, Ajax Fiori hasambitions to create a significant presence beyond Indian shores in the coming years.

 

 

Is this a ‘Buyers’ Market,’ to what extent do you agree with it?’

 

It’s always a Buyers’ market, because whenever a product is sold with different specifications, at different price levels, the price is driven by the market.

 

 

 

But the Cost/Quality Equation in India is very tight.

 

There are different types of customers, some customers would like to have very high-end machines, and some customers would  like to buy machines that just meet their requirements. It all depends on their usage,the utility of that machine, and the type of projects they are handling,. Either they would want to discount it for a particular project, or they want to use it for other projects. Based on that the customer decides the kind of equipment they should go for.

 

 

 

Smart features in your machines.

 

In our batching plants we have different levels of control systems, depending on the customer’s requirement. A customer would like to use this machine at a particular site & hence he could opt for a basic control system which helps him to operate the machine, compute all the data, also have data base of history of the concrete produced on that machine, types of mix designs, various quantities. RMCs would like to have much higher end control systems, where they are in a position to collate lot of statistical calculations, based on which they do analytics in understanding their feasibility and details of concrete produced and materials consumed. Some companies go one step further & they want to have higher end control systems where they will have different plants also tied together. They would like to have all the data centralised into their SAP ERP function. So we have di_ erent levels of control systems which get to all these requirements.

 

 

Tell us about your projected CAGR. Proportions between various products.

 

At this point of time, particularly for SLCMs, batching plants, transit mixers, and concrete pumps, for next five years, our CAGR target is between 20-25 per cent. For SLCMs where we are the pioneers& the global leader, we want to retain the position for SLCM & for other products, batching plants, transit mixers, and concrete pumps, we want to achieve at least 25-30 per cent market share.

 

 

You are among the reputed global OEMs using India as a manufacturing base for emerging markets. Is India setting the Cost/Quality template for Emergingmarkets?

 

As of today, many of these countries are something similar to what India was 15 or 18 years back, where the mechanisation had just begun.

Today many countries in Africa mechanisation has just started. We see big potential where we manufacture in India and sell these equipment in these countries. Because today we do not have huge volumes to set up there, at the most we can have an assembly plant there but all the components have to come from here. We need to have the cost advantage of India’s manufacturing costs.

 

FAST FACTS

4 Setting up 4th plant in India

 

Products Launched

4 Argo 2500 SLCM

4 120 Cu.m/hr Batching Plants

4 70 cu.m/hr Concrete Pumps

4 Entering 6, 8, 10, cu.m Mixer




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