Shriram Automall India is the number one service provider of used construction equipment in the country. Sameer Malhotra, CEO, Shriram Automall, elaborates on the used equipment market in India and the company's services to customers.
How is the market for equipment auctioning progressing? Compared to developed market, organised auctioning is still very small in India. How do you view this scenario?
SAMIL with an eye for 100 per cent customer satisfaction, came up with the innovative idea of Physical Bidding in India, and since then the company has come a long way while emerging as the number one and the largest platform for acquisition and disposal of used vehicles and equipment in the country. Till date, the company has sold over 25,000 used equipment through effective physical bidding platform across the country. SAMIL has effectively paved its way into the market and customers have accepted the new concept whole-heartedly. As a result, since 2011, we have garnered over 5,50,000 transactions from over 40,000 bidding events through 68 well-structured Automalls across the country, acquiring over 6,50,000 unique bidders.
Yet, the market for this segment is quite unorganised and underdeveloped due to lower number of developed players in the market. In a long run with upcoming big government projects which focus on the infrastructure development in the country, we may witness this unorganised segment to emerge as the semi-organised one and then over a period of time as the completely organised one. Till then, with SAMIL in the market, customers can benefit from its prodigious platform to acquire and dispose pre-owned vehicles and equipment in an organised manner.
There are restrictions for used equipment in many big projects. How do you view this?
Construction sector in India is considered to be the second largest employer and contributor to economic activity. About 50 per cent of the demand for construction activities in India comes from the infrastructure sector, while the rest comes from industrial activities, residential and commercial development etc.
For big projects, contractors usually go for the used equipment as buying a new piece of equipment is a significant investment that can easily eat up money, thereby acquiring the used one seems optimal. And also, by acquiring used construction equipment, customers can avoid initial depreciation as new assets depreciate faster than that of the used ones.
For general purposes equipment, contractor prefers to acquire a used equipment which are not more than 2-3 years old, like backhoe loader, transit mixer, excavator etc. On the other hand, when it comes to specialised equipment, contractors are willing to go for the equipment which are 5-6 years old as these machines are selected on the basis of overall condition and hours clocked.
SAMIL while understanding the requirement of end-users manages to provide the minimum aged reliable used equipment of every make and model, providing easy deployment and optimal output to clients.
Could you brief us on your equipment fleet?
We at SAMIL help bridge the gap between the seller and the buyer of used automotives. We are the number one service provider of used construction equipment in the country. Through our services, we help customers and fleet owners to acquire and dispose pre-owned equipment in a structured process.
Being the one-stop solution for all types of pre-owned vehicles and equipment requirement in India, the company provides a common platform to equipment owners, dealers, individuals, and corporates where both buyer and seller can acquire and dispose pre-owned construction equipment while coming together to discuss the details of equipment in demand.