It is a fact that the slowdown in the equipment sector has directly impacted the prospects of the CASH (components, accessories, spares and hardware) industry, with sales declining sharply. The just concluded Excon 2013, though, presents a promising picture of the sector in the coming years. Though OEMs, especially the bigger machine manufacturers , were present in less numbers as compared to the last Excon an unexpected lot of CASH players not only from India but also from countries like China, Japan, Italy, Germany, Sweden, etc, were there to showcase their products and assets. It is important to note that 386 component manufacturers and 93 accessories manufacturers took part and accounted for 65 per cent of the total number of exhibitors.
This overwhelming response at Excon 2013 will definitely help enhance the scope of the CASH players despite the prevailing slowdown. What is more important, we found that many CASH players have plans to set up new facilities and ramp up production here in India. Apart from upgrading their existing product lines, they are also planning to introduce new products over a period, as per customer requirements. The reason is that many global OEMs have a presence in India and is either expanding their production facilities or setting up new facilities, clearly anticipating a possible bounce- back of the infrastructure sector. Another reason is that the CASH players are planning to make India an export hub for the subcontinent, African countries, and Latin American countries and even for developed countries in Europe and North America. On a parallel track, it was evident from the exhibition that many new players from China, Japan and Italy are keen on making their presence felt in India and are looking for new dealers and distributors in the country.
The majority of the players feel that the current slowdown is a temporary one and that the industry has a bright future. However, they also emphasise the need for a multi-pronged approach for the industry to prosper in the future.