Due to rising infrastructure development in the country, Indian construction equipment industry is expected to grow over 20% to 58,465 machines in 2016, said a latest report of Off-Highway Research, a global research firm of construction and agricultural equipment markets.
Sales of construction equipment in India grew over 37% in the first six months (Between January and June) of 2016 when compared to the same period last year, said its specialist consultant and market forecasting study.
The sale of construction equipment could rise during this period, as Indian government has increased its infrastructure investment, especially in road and railways and actual construction work has resumed on the ground. Last month, government has informed the Parliament that Ministry of Road Transport and Highways had approximately awarded projects worth Rs 2 lakh crore in last two years.
Off-Highway Research’s report further says, Indian construction equipment market has witnessed a turnaround over the last 18 months, with sales falling to a low of 47,889 units in 2014, before enjoying a small increase in last year (2015). On the back of infrastructure investment, sale of CE products is expected to surge over 20% in 2016. It is also expected to sustain market (CE) growth for the next four years, albeit at more sustainable levels, it said.
“Infrastructure development is a key economic driver and enjoys an intense government focus that should accelerate demand for construction equipment in the country. India needs an estimated investment of INR 31 trillion (US$ 465 billion) over the next five years to keep pace with its growth targets, of which over 70% would be needed for power, roads and urban infrastructure segments. The total budgeted outlay for the infrastructure sector for fiscal year ending March 2017 is INR 2.2 trillion (US$ 33 billion),” said Off-Highway Research in its report.
It is projected, sale of construction equipment likely to rise to 73,595 units in 2020, if it touches this number, and it would break previous high of 67,898 units sold in 2011.
According to report finding, Backhoe loader is extremely popular machine in India and around 24,500 units expected to be sold this year alone and it represents 42% of the market in volume terms. Off-Highway Research believes the strongest long-term growth prospects are in the crawler excavator segment in India, it is projected to double in size between 2015 and 2020 to 22,000 units per year.
John Deere one of the globally known Construction, agricultural and forestry machinery makers, releases the new G-series of large-frame skid steers Loaders 330G, 332G and compact track loaders 331G, 333G. These machines were inspired by extensive feedback from its customers looking for more productivity, better visibility and simplified service to remain competitive in their businesses.
Company also added a host of new features to make the large-frame G-Series machines easier to run and maintain on jobs of every scale.
The biggest improvement on the large-frame G-Series is the refined vertical-lift loader boom design that rise higher, reaches farther and lifts more for quicker and easier loading. Height to hinge pin is 11 feet, enabling operators to easily load dump trucks, feed mixers, fill hoppers and everything in between. The company believes customers will also appreciate the new lift path that extends an additional six inches from the machine.
Contractors, landscapers, farmers, rental professionals and other equipment owners who understand the value of compact equipment can now expect even more power, productivity and uptime on the job with the new G-series equipment.
“Demand for compact machines that maximize productivity and uptime at low daily operating costs is growing, and John Deere is growing with it by adding powerful new options to our G-Series lineup, like the new large-frame skid steers and compact track loaders”, said Mr. Gregg Zupancic, product marketing manager, John Deere Construction and Forestry.
The large frames also serve up substantially greater boom and bucket breakout forces. In fact, they have horsepower that is comparable to a small backhoe loader or crawler, and they also work comfortably in tight quarters, so operators can accomplish more with less machine. Increased rated operating capacities of up to 3,700 lbs. give these models the muscle needed to master heavy loads, coupled with a breakout force that has been increased by 40 percent to make lifting heavy loads easier, said the company in an official release.
Increased auxiliary hydraulic flow and power on the large frames means customers can make the most of an even broader range of attachments for a wide variety of work. Universal Quik-Tatch enables you to go from bucket to forks and more in just seconds. Generous standard and optional high-flow auxiliary hydraulics also let you effortlessly run powered attachments, such as hydraulic hammers, cold planers, mulching heads and trenchers. All auxiliary hydraulic lines and wiring on new machines are now routed through the boom where they’re more protected and out of the operator’s Sightline.
The company further says another key uptime improvement on the G-Series large-frame machines is the integration of John Deere WorkSight, an exclusive suite of telematics solutions that increases uptime while lowering operating costs. At its heart, JDLink Ultimate machine monitoring provides real-time data and health prognostics to suggest maintenance solutions that decrease costly downtime. Remote diagnostics enable a dealer to read codes, record performance data and even update software without a trip to the job site.
Company made several other enhancements to these compact G-Series machines.
Source: Information has been obtained from company’s press release
It is strange going to another state to buy a product despite it is available in home state, but it is happening in our own country where people from other states are going to Rajasthan to buy heavy-duty trucks. But people could only travel far to buy anything when they save money purchasing the same product from other than home state.
In last few months, Rajasthan has attracted buyers from many North Indian states, including Madhya Pradesh, Uttar Pradesh, Haryana, Punjab and other. Buyers from these states are visiting Rajasthan to buy the trucks from here as Rajasthan government’s reduced the Value added tax (VAT) by 2% over the purchase of heavy-duty trucks, which help the buyers to save good amount of money from overall sales tax, which made Rajasthan a leading seller of trucks in recent time.
The impact of selling a number of trucks has seen in the state government’s earning in first quarter (April-June) of FY 2016-17. During the period, out of Rs 700 crore of revenues from the transport sector, a huge chunk of revenue has come from the sales of trucks, claimed an official from the state government, reported TNN.
VAT on various neighbouring states is higher than Rajasthan, which is helping transporters and other buyers from different sectors who require trucks to purchase it from Rajasthan.
As per the various media reports, State government has asked various heavy vehicle manufacturers and dealers to publicise the taxes in Rajasthan, which could attract buyers from other than north India in coming months.
If you are planning to buy new heavy-duty truck, you can approach to dealers of leading truck manufacturers like Tata Motors, Ashok Leyland, Eicher, Swaraj Mazda, Volvo, Mahindra & Mahindra and other in Rajasthan, purchasing the trucks from Rajasthan based dealers will reduce your overall cost of purchasing the truck.
If you needed used trucks, various online portals which are in the business of buying and selling of second-hand trucks and construction equipment will help you to buy trucks from Rajasthan. Among them, one of the fastest emerging and reliable portal is www.equipmentonestop.com, it will help you to bring second-hand trucks in your budget from Rajasthan and help you to bring it at your doorstep which would further save you money due to reduction in VAT.
As Indian construction equipment market has started reviving after a gap of four years (2012-2014), the sales of trucks also started reviving after a gap of four years as economy back on track and cargo movement increased in the country and rise in infrastructure, construction industry also made a positive impact on rising sales of trucks in the country.
The sale of heavy-duty trucks rose last year and expected to exceed its previous high of 2011 in coming years due to rising number of trucks in current scenario. It seems, the reduction of VAT on buying trucks in Rajasthan will attract truck buyers from various other states in coming months.
The sale of Tipper trucks and Dump trucks are expected to rise further in the second half of this financial year as Coal India Ltd (CIL) is holding forward e-auction of coal blocks for power producers to meet the rising demand of the electricity in the country. CIL is the major producer of coal in India.
The heavy Tipper trucks and Dump trucks mainly in demand for coal mining and infrastructure projects, therefore all the major players of the country are expecting huge demand of such heavy vehicles mainly from these two sectors. Once the mining of other minerals begins, tipper sales may rise further in the future.
It is reported, Special forward e-auction of coal blocks for 2016-17 for phase III is being held this month. CIL has already prepared a roadmap to achieve the target of producing one billion tonne coal by 2020 and for this financial year, the target is set to produce 598.61 million tonnes of coal, last fiscal (2015-16), it had produced 538.75 million tonnes of coal.
The rising demand of the coal in the country, does not only show the requirement of the electricity, but it also indicates huge requirement of such heavy commercial trucks, which needed for loading and carrying the coal in massive number.
Various trucks manufacturers are coming up with new models and also working-on to expand its existing capacity of production to tap the coal sector. These truck makers are coming up with high-powered Tippers and Dump trucks that can get into deep coal mines to carry the coal.
Under the provisions of the Coal Mines (Special Provisions) Act, 2015, 75 coal mines (31 by way of auction and 44 by way of allotment) have been allocated so far. Mining operations have commenced and mine opening permission granted in 11 auctioned coal mines as on 20.07.2016, the government informed Parliament in recently concluded session.
Due to rising demand of heavy commercial vehicles in various sectors including Mines, Construction and Logistics, the sale of medium and heavy commercial vehicle (M&HCV) has been witnessing positive growth over the period of last one year, last fiscal (FY2015-16) M&HCV segment grew by 30% with sales of 302,373 units as compared to fiscal year (2014-15).
In the first four months (April-July) of current fiscal, 92379 units of M&HCV has been sold, during the same period in last financial year 85135 units were sold in the same segment. Society of Indian Automobile Manufactures (SIAM) said, M&HCVs has registered a growth at 14.49% during April-June period of 2016-17.
The recent sale data of M&HCVs indicate that commercial vehicles market has started reviving and as more coal mines and construction work begin, the heavy-duty Tipper and Dump trucks will get new heights in terms of sale. Manufacturers like Tata, AMW, Volvo, Eicher, Ashok Leyland, Scania, Daimler and other would get huge demand for their various products in commercial vehicle segment from mining and construction companies in coming months.
As CIL sets the target of one billion tonne of coal production over next five years, it shows the positive growth of heavy commercial vehicle, including Tipper and Dump trucks is here to stay for a long period, sell of both new and used Tipper and Dumper will see positive growth during this period.
Source: Information has been obtained from government’s release, SIAM, PTI and other media reports
Revival of Indian economy and rising infrastructure projects in the country motivates infrastructure and construction companies to buy new construction equipment to complete the projects. So many people must be planning to purchase new equipment due to the rising number of projects across the country.
Making right decision while buying an ideal machine which suit your project requirement is not an easy task, because heavy equipment are very costly and needed huge investment, so making right decision is very crucial at the time of purchasing equipment.
There are few things which people must consider before buying the heavy equipment.
Prefer well-known company
If you are planning to buy new equipment, the first and foremost thing you should give priority to the brand, because to become brand in any segment is not an easy job, it requires decades to win the trust of its customer. Branded companies have strong and positive track record to provide best quality of products. A company which becomes a brand after struggle of several years will not compromise with quality and using such machinery give the advantage of cutting edge. Products of such companies are very reliable when it comes to performance on the site. However, buying a machine from market leader may cost you a little extra but it could give you the assurance of best quality.
Another advantage of buying machinery from a well-known company is that, they manufacture machine such way that it requires less maintenance, which will save your regular maintenance cost. Regular maintenance does not only cost you extra money on a regular basis, but also affect your work.
Suggestion from Experts
You might be in the construction business for many years, but having technical expertise and being in the business is two different things. Experts are aware of latest trend in the market and they will suggest you the machine as per your requirement. Companies only talk about good features of the product and do not highlight the negative aspects of equipment, where experts play a crucial role helping you to understand negative aspects of the machine. Industry experts are having experience of many years, so their suggestion before buying heavy equipment will add advantage during your planning process.
Go along with expert to the showroom
It is a clever decision taking an expert along with you when going to the showroom of heavy equipment. A person who does not have much knowledge about machinery will not be able to ask fundamental questions related to the machine but expert can personally ask various question related to the products and he will be also able to check equipment personally, which could give you satisfaction before investing huge amount in particular machine.
The new technology is changing the face of construction industry, so do the work culture at a construction site. Heavy equipment with latest technology is impacting overall performance of the industry. Such machines take less time to complete the project with minimum manpower as compared to older version of the machine.
Equipment with latest technology helps in attracting more business to the contractors, such contractors get more projects, and clients prefer those contractors who are having advanced technology heavy equipment. Works in construction field get smoother and faster with the help of equipment fitted with cutting edge technologies and such machine help in completing the project on time.
Fuel Efficient machine
Heavy construction equipment adds a huge amount of cost and even after purchasing these machines. So it is always advisable to prefer the equipment which consumes less fuel, which will help you to save huge money in long term. Fuelling is one of the major cost, contractor have to bear after the purchase.
World mining equipment market is expected to touch USD 150 billion by 2022 and forecasted to grow at a CAGR of 7.9 percent during 2016-2022; Asia-Pacific is likely to be the largest market of mining equipment during this period. India, China, Australia, and Indonesia are likely to be the main revenue-generating countries in Asia-Pacific region, said a latest report published by Allied Market Research.
The report named ‘World Mining Equipment Market- Opportunities and Forecasts, 2015-2022’ said, growth of the mining equipment in Asia-Pacific will drive by increasing demand of coal for generating electricity and rising demand of technologically advanced mining equipment. Construction of roads and railway tracks through hilly areas will also play crucial role in growing the mining equipment market.
India has already accelerated its speed to spread the road network across the country, government has planned to spend Rs 7 lakh crore to develop National Highways of around 50,000 km in the next 5 years, which will help such equipment to drive the market, as the report suggests.
There are various types of mining equipment which used for different type of mining, these include, mineral processing equipment, surface mining equipment, underground mining equipment, mining drills & breakers, crushing, pulverising & screening equipment, and other mining equipment, the demand of such equipment would rise when specific types of mining will start taking place in different regions of the country.
Mining drills and breakers are anticipated to witness impressive growth in coming years due to their increasing application in metal mining, said the report.
Mining excavator, Dragline, Drills, Roof Bolters, Continuous miners, Longwall miners, Rock dusters, Shuttle cars, Loader, Mobile Crushing plant, Grinding equipment, Cone Crusher, Scoops, Cranes, Dump trucks, Tippers and other different mining equipment sale is expected to drive on the back of rising mining activities in various mineral rich states and coal mining in different Indian state to produce electricity.
For the current financial year, Indian government set a target of 598 million tonnes of coal for Coal India Ltd (CIL) which accounts 80% of domestic coal output. In June itself, CIL produced 42.72 million tonnes of coal and having a goal to produce 1 billion tonnes of coal by 2020. Recently government has said; it had allocated 75 coal mines, which indicates the requirement of mining equipment in the country for next five years.
Recently passed National Mineral Exploration Policy (NMEP) in Cabinet in favour of mineral mining will definitely drive the mining in mineral rich states which would boost the mining equipment in the country, Initially, the steps would encourage the private and foreign companies to participate in the transparent e-auction process for 100 potential mineral blocks over the next six months in mineral rich states of the country.
It shows along with coal mining, different mineral mining will also drive the mining equipment market in the country.
Source: Information has been obtained from Allied Market Research & Government release
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.