26 June 2019

Interaction-Nichal Mehrotra, Dir-Sales & Mktg,

The sector is pegged to grow at 20 per cent CAGR

 

 

LiuGong India, a 100 per cent subsidiary of Guangxi LiuGong, world’s Largest Manufacturer of Wheel Loaders. The company recently completed its 60 successful years in India. In an exclusive interview with CONSTRUCTION OPPORTUNITIES, NISCHAL MEHROTRA, DIRECTOR, SALES AND MARKETING,  LIUGONG INDIA PVT. LTD speaks about the quality equations, sector challenges, steps taken in terms of skill development and the future outlook.

 

 

 

 

Industry analysts anticipate that the Indian construction equipment market is expected to cross USD 5.3 Billion till 2023-24. What are the cost/quality equations, sector challenges, and growth prospects?

 

India is poised for infrastructure growth. Still lot needs to be done in urban infrastructure. For instance India has only 24 per cent national highway network which is 4 lanes, therefore, there is immense scope of improvement. Not to forget the other infrastructure projects like airports, railways, ports, freight corridors, smart cities and mining.

 

 

Lack of skilled operators, unregulated import of used equipment, delayed approval of projects and losses on account of idling equipment are some of the challenges

 

 

Detail us on the range of construction equipment offered by your company, in terms of types, capacities, and applications.

 

Globally Liugong has about 15 different types of Construction Equipment. In India we offer only 6 types of Equipment which includes Excavators (8 tonne to 50 tonne), Wheel Loaders (2 Tonne to 7 Tonne Payload capacity), Motor Graders, Dozers, Soil Compactor & Forklifts

 

 

 

Are you planning to launch any new products or variants to you existing product portfolio?

 

We might add couple of product line in India portfolio this year

 

 

 

Detail us about the cutting edge technology used in your machines. Detail us on the Safety features and operator comfort in your machines. What are the USP’s of your products Vis-à-vis competition

 

LiuGong always believes in adapting latest technologies.  Operator’s safety and comfort are always a high priority for LiuGong. For safety purpose our machines have ROPS & FOPS features in the machine cabins. For comfort most of the machines have air conditioned cabins.

 

 

LiuGong has JVs for important components of machine like for Engine we have a JV with Cummins and for transmission with ZF. This gives us an edge over the competition by manufacturing fuel economical and reliable machines. 

 

 

 

Detail us on your aftermarket services as a strategic differentiator.

 

As a company policy we put service on top agenda. We have a network of about 23 dealers with 60 plus touch points pan India which enables us attend the downtime within 48 hours of service query lodged with us.

 

 

 

What are the trends driving purchase or hire of construction equipment in India? To what extent is consumer behavior influenced by cost?

 

In India road sector is primarily driving the growth followed by ports and few mining projects. Cost plays a vital role in any equipment purchase as India is predominantly cost conscious market. However it doesn’t play a barrier too. Customers are ready to shell extra money for the quality. 

 

 

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

 

We follow MAKE IN INDIA initiative to a great extent. We have been manufacturing most of machines in India barring few models. As our India plant would be completing 10 years in 2019, we intend to follow MAKE IN INDIA initiative more strictly from the present year by manufacturing most of our machines locally in India.

 

 

 

What are the steps taken by your company in terms of skill development to derive optimized results for end user?

 

We support the skill India movement initiated by our government. We have a tie-up with Infrastructure Equipment Skill Council (IESC), a body backed up by ICEMA. Under this we train the machine operators. Furthermore we also have tie ups with various it is running across India wherein we hire the fresh talent, train them and finally place them either within our network or outside

 

 

 

Future outlook for the industry and from a company perspective

 

The industry currently riding on Government’s stimulants and investments to fast forward infrastructure projects primarily development of roads and highways. Big ticket Sagarmala and Bharatmala will also give a leg up to development of rural roads and rural infrastructure. The sector is pegged to grow at CAGR of 20 per cent.




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