Sandeep Bangur, Executive Director, DOZCO (India) Pvt Ltd.
Post GST, the construction equipment (CE) sector in India had a short term hit. Retail hiring segment was adversely effected, as it is more of unorganised sector. However, from October onwards, equipment sales have picked up strongly and we are optimistic that this positive trend will continue throughout 2018. Government has announced major investments in infrastructure like Railways, Roads with focus on borders, River interlinking project, Inland waterways, and greenfield airports, which will drive the CE industry. Overall, the growth in 2018 should be in the range of 15-20 per cent.
All the major players in equipment industry have invested heavily to ramp up their production considering the positive growth outlook. Return on investment is a major challenge to all, as there was a slight slowdown in the market in Q3, which sent ripples across the industry. Further, price realisation in our country is still an issue. We are working on wafer thin margins on capital equipment. Government needs to have a focused approach in infrastructure segment, so that investments made by manufactures yield positive return.
A platform of opportunity
Excon is in its 9th edition with 17 year old legacy. I understand it is much bigger than the previous edition. The sheer volume of work announced by the Government of India in infrastructure should make all the CE players happy.
DOZCO is promoting the concept of Make in India. We have set up a greenfield manufacturing facility in Visakhapatnam spread over 38,000 sq m, producing rock breaker, chisel, undercarriage, light tower and miscellaneous components. At this Excon, we are planning to launch a few innovative products including: DOZCO 7000A - 80 tonne class rock breaker, augur attachments, crusher and screening bucket, and Shantui DH17 - a full hydraulic dozer.
Excon would be an ideal platform for customers to understand the product range DOZCO can provide, ably backed by our dedicated service and pan-India presence. Further, it would boost DOZCO's image as a manufacturer of component and help us penetrate OEM and export market.