We understand the importance of R&D and our products are fully equipped to cater to the current and future needs of the market, says Pradeep Sharma, President, Action Construction Equipment. Excerpts from the interview...
How do you assess the current economic scenario?
Despite the prevailing global uncertainties, rising needs of better infrastructure, modernised methods of agriculture and growing complexity of mining/manufacturing methods will boost demand for technologically advanced equipment in these industries. Moreover, looking ahead, the growth path widens for the emerging and developing nations, which will inevitably be attractive destinations for machine makers worldwide. The new political dispensation lends a lot of credibility and hope for the growth of infrastructure in future.
Is there a perceptible demand growth for construction equipment?
There is a definite positive sentiment as a stable government has taken over and the whole industry is expected to benefit from this. But, it has not yet started reflecting in numbers and we still have to see the effect on ground. We are expecting the situation to change in the coming months and the next financial year will definitely show us the results that we all expect.
Which are the current verticals that drive the demand for mobile cranes?
Studies reveal that new areas are emerging that hold good growth potential in the future, especially in rentals which currently contribute just about two per cent of a market which is expected to grow. Equipment leasing is another sector, which is expected to grow. Financing and end-to-end services are other promising segments where some of the large players are looking at providing services to the users throughout the equipment lifecycle - financing, user training, maintenance and buyback of used equipment. Finally, exports of construction equipment should grow, and is expected to sustain this growth in future.
To what extent ACE has geared up to meet the expected demand?
We understand the importance of R&D and innovation in terms of appropriate product technology and pricing, product customisation for different applications, product reliability and ease of use, and last but not the least, after-sales support in terms of service and training infrastructure, focus on maintenance of equipment, ensuring the availability of spare parts and widening the distribution network to serve the client better. Our products are fully equipped to cater to the current and future needs of the market.
What are the initiatives taken by ACE to sustain the growth?
The policy of responding with speed and expertise has been rewarded over the years in the form of repeat business, resulting in constant growth and making us the leading company in the mobile cranes, tower cranes and construction equipment sector in the country. Another factor driving our growth has been the versatility of our equipment to satisfy a vast range of possible applications.
What distinguishes ACE?
What distinguishes ACE is its focus and concern for safety, quality and training. Safety is of paramount importance to us. Any compromise with safety causes loss to life and machines. Our equipment conforms to ´best-in-class´ standards. Raw materials and components are sourced from reputed vendors only and they are properly tested before they are fitted on our machines. We have well-defined system of monitoring quality which ensures desired quality standards at all levels. Incoming raw material and bought out items pass through zero-tolerance quality systems. Work in progress is also checked out to ensure 100 per cent inspection and quality procedures are followed throughout the manufacturing process.
How did ACE perform in the last two quarters? How do you expect to end this fiscal?
Business is definitely improving with each passing month, but is still way behind the level of what it should be. As stated earlier, a few more months are required for policies to take shape on ground. Definitely, this fiscal year would end with much hopes and aspirations for a better start of the next fiscal year.´
What is your take on bC India? Are there any product launches?
Definitely there will be new launches in bC India. It is a mega event and is able to attract a lot of attention from within and outside the industry.