LiuGong India is launching its made in India Bharat Stage-III emission compliant diesel engine-powered wheel loader. LiuGong is the only company in India which manufactures 5 tonne capacity wheel loaders in India with a BSIII compliant engine, informs Sunil Sapru, President, LiuGong India in an exclusive chat with Equipment India. Excerpts from the interview.What is the preset status of the construction equipment industry, its size and growth potential?Everyone is looking at India as the growing market with growth across all its sectors. We are quite optimistic with the infrastructure growth; therefore, we expect a minimum growth of 25-30 per cent. Based on the market analysis and looking at future potentials, we have made requisite commitments in our manufacturing facility and have set up vendor base along with key strategic suppliers' basis similar growth.Further, with showcasing our products at various events, exhibitions, road shows and other applications in various infrastructure projects, there is an overwhelming response, therefore we are looking for a substantial growth over next 2-3 years. By the middle of this decade, we expect LiuGong India to be one amongst the largest companies in India that will have a major role to play in shaping India's future development.What was the performance of LiuGong in the last two quarters and how do you expect to end this fiscal?The organisation is uniquely positioned to make good on its aspirations. It has the breadth of the products to compete on a global scale. LiuGong India continue to enhance the core competitiveness, optimising internal operations management, enhance cohesion, foreign and comprehensively improve the ability to control the market in the first quarter. Lean manufacturing excellence concepts and tools of Six Sigma are widely used LiuGong production systems; information technology, the sap system are implemented to enhance the core competitiveness of key components and a series of technological inputs play an important role.Over the last five years what is the investment LiuGong has made, either for capacity addition or new manufacturing facility?With imminent growth in the infrastructure, we have made requisite commitments in our manufacturing facility complemented with R&D and training centre at Pithampur. LiuGong India Plant has been set up covering 44 acres fully equipped with the top-draw facilities; an R&D-manufacturing-sales-service-parts centre. Currently, the plant has a production capacity of 3,000 units of wheel loaders, ie, CLG835 BSIII and CLG856 BSIII annually. This production facility has enhanced the success story of LiuGong in the Indian market and is expected to begin for the motor grader CLG414BSIII by the year end.What is the impact of the new emission norms on LiuGong? Will the new JV with Cummins benefit Indian customers?LiuGong India has come up with its BSIII -compliant diesel engines in their wheel loaders CLG835 and CLG856. LiuGong is the only company which manufactures 5 tonne capacity wheel loaders in India with a BSIII- compliant engine. Some of the key features of our BSIII engines are that they have low operating and maintenance costs.The joint-venture between LiuGong and Cummins can be seen as a natural progression of our successful ten-year relationship and we are delighted to become even stronger partners. The joint-venture creates the foundation for both partners to significantly expand in the construction equipment market. By combining our equipment expertise with Cummins world class engine capability, we know we have the right formula in place for our new joint-venture to succeed. Initial operations will begin in 2012 with the engine-kit assembly, providing a useful lead-in to full production engines in 2013.How do you view the increasing cost for input materials?Cost rise is an issue for everybody to tackle in this industry. On one side, we have tough competition that too from all recognised global players, which puts the price realisation under strain and on the other hand, we have the spiraling input costs to balance. The challenges for the industry are always there. In fact, every industry constantly works against the rising costs. LiuGong India on its part, has been constantly undertaking value engineering projects. The objective is to bring down production costs while enhancing the efficiency of the machines.Tell us about the initiatives taken to widen the sales and service network, and training for operators.LiuGong India is focused on having an extensive sales and service network across the country as well as in its neighboring countries. We have already established a strong dealer network with 15 dealers operating in different parts of India and neighbouring countries like Nepal, Bhutan, Bangladesh and Sri Lanka. LiuGong India endeavors to keep expanding its network and moving closer to its customer.We also adopt different business model based on its requirements, ie, to provide value based solution to customers at competitive prices with high returns, Value for money with low operational cost, total solution to our business associates (one stop shop) and the right vendor choice. LiuGong is vigorously conducting the operators training programmes at the site for the customers. We also conduct classroom training and provide hands- on training at our Pitampura plant as well as at our training centres in Indore. Apart from the above, we also provide modules, regular health checkups, customised services, spare recommendations, fleet maintenance contract and MARC contracts.How do you look at the business opportunities from Excon? Are you planning any launch?LiuGong truly wishes the show to be a super successful event in India for the construction industry equipment segment and we are happy to be a part of this. We expect to do a lot of B2B interaction with representative from user segments within India and abroad during the show. We are also expecting that Excon will provide the customers the right product choice, one shop solution and to head more towards greater application oriented equipment technology.LiuGong India is launching its made in India Bharat Stage III emission-compliant diesel engine-powered wheel loader. The machine powered by this engine is specifically designed for Indian conditions. LiuGong is the only company in India which manufactures 5 tonne capacity wheel loaders in India with a BSIII compliant engine. This time at Excon, we are displaying our wheel loaders, excavators, motor graders and forklifts.