As investment from government, foreign and domestic players floating into India’s infrastructure sector and economy started improving; the actual work has started taking place on the ground, which leads to demand of various construction, mining and farm equipment in the country. The demand of the equipment started reflecting on growing sales of equipment manufacturers in the country.
Country’s leading engineering conglomerates Escorts Ltd, which is into diversified engineering businesses like Construction Equipment, Agri Machinery, Railway Equipment and Auto Products. In first quarter (Q1) of FY 2016-17, Escorts Construction Equipment has witnessed positive growth in construction equipment division and rising demand of construction equipment in the country led to the sale of its construction equipment. During April-June period of FY2016-17, it has sold 739 units of construction equipment ranging from various CE products against 508 units sold in first quarter ending June 2015, which is showing a 45% corresponding growth.
The sale of CE helped in generating more revenue for the company in quarter ending June 2016, revenue of the Escorts Construction Equipment jumped to 31.7 percent correspondingly to Rs 124.8 crore as against Rs 94.7 crore in corresponding quarter ending June 2015.
Escorts manufacturers and markets a diverse range of construction and material handling equipment like Cranes, Loaders, Vibratory rollers and Forklifts. Its diverse product portfolios are Material Handling Equipment (Pick and Carry cranes, Crawler cranes, Articulated boom cranes, Tower cranes, Forklift trucks and Truck & All Terrain Truck cranes), Earth Moving Equipment (ESCORTS DIGMAX (BackHoe Loader), Road Construction Equipment (Tandem Vibratory Compactors, Vibratory Soil Compactors, Wheel Loader and Motor Grader) and Utility Equipment (Telescopic Handlers and Fork Lift).
Speaking on the results, Mr. Rajan Nanda, Chairman of Escorts Ltd said, “The last quarter has shown a welcome upward trend in market demand. Sustaining it by the government taking advantage of a good monsoon would be important for the revival of the overall farm sector. The government has to provide a big impetus to farm mechanization, crop insurance and agriculture infrastructure. The construction industry too is showing signs of improvement and railways are on a healthy track. I am confident that if the economy continues to strengthen across sectors, our investments in better product mix, increased coverage, enhanced efficiencies and product innovation will deliver even better results.”
The India Meteorological Department (IMD) had projected better rain this monsoon, could be the reason to increase the sale of Agri Machinery during the June quarter.
Escorts Agri Machinery (EAM) witnessed the corresponding growth of 10 percent in quarter ended June 2016 in sale of tractors to 16,363 units against 14,875 units in quarter ended June 2015. The segment revenues increased to Rs 858.3 crore in Q1 FY2016-17 against Rs 793 crore during same quarter last year.
The revenues of Railway equipment division also witnessed an increase of 11.9 percent to Rs 54.5 crore against the corresponding quarter ending June 2015. The company said, Escorts Railway Products has a current order book of Rs 100 crore (approx.) which will stand executed in next 7 to 8 months.
The company was a pioneer in introducing the concept of Pick ‘n’ Carry hydraulic mobile cranes in the 70s in India and continues to be the world’s largest manufacturer of these cranes, company claims on its website.
Escorts was the first to bring the concept of Vibratory Compactors in India in a big way, back in 80’s. Subsequently, more models in Tandem Vibratory Compactors and heavy duty Soil Compactor range were added in technical collaboration with HAMM Germany. Recently, it has further strengthened the range with a 3T Shoulder Compactor.
Today its range of compaction equipments is one of the most preferred in the market, and is being viewed as the most efficient and effective compaction solutions available in the country, claims the company.