Logistics and taxation challenges are the biggest bottlenecks. Absence of GST regime is actually hurting the prospects of business growth and economic activity expansion, says Vijay Sharma, Executive Director, Terex Equipment. Excerpts from the interview...
What sort of policy initiatives do you expect from the Government?
The new Government has already initiated most of the policy reforms required to catalyse growth. Action on the ground has to now bring about the desired results. Action on the ground means the flow of funds (public or private), money has to start flowing. The RBI´s recent cut in repo rate will have its desired effect. We hope the money will flow in the real economy and not in the stock market. The Government also needs to clear its dues to private players working with NHAI or other public bodies.
What are the major challenges in supply-chain management?
Supply chain is not a challenge any more. In the entire value chain, our industry has handled higher volumes in 2009-10. So they are just waiting in the wings for the real action to start.
What are the challenges faced by manufacturing in India?
Logistics and taxation challenges are the biggest bottlenecks. Absence of GST regime is actually hurting prospects of business growth and economic activity expansion.
To what extent Terex India is a manufacturing hub?
In our global set up, Terex India has a very important place. India is a touch-point for all Terex businesses operating in various worldwide geographies.
What is the level of localization achieved in your products range?
At Terex, we have achieved high degree of localization. Our machines are not only made in India, but also made for India.
Tell us about your manufacturing plants with facilities.
Terex operates three plants in India. These are for the construction, material processing and material handling verticals. Our plants are located at Greater Noida, Hosur and Pune.
Brief us on your R&D facility.
Terex has a full scale global R&D and design centre at Belgaluru. We have a crack team of over 150 engineers working not only for all Terex group companies, but also offers their expertise as a profit centre for other engineering product companies.
What is the range of products offered?
We at Terex India now offer three variants of backhoe loaders, and one model of skid steer loader from our Greater Noida plant. We have also launched two models of wheel loaders (3 and 5 mt) payload under a strategic agreement with Lonking, China. In the coming months, we are keen to introduce new variants of backhoe loaders and skid steer loaders, and also bring in crawler excavators at an appropriate time.
What are the steps initiated to enhance service to the customer?
Terex now operates a pan-India dealer network of over 53 dealers with over 150 service outlets. We operate seven warehouses across the country.
How do you look at the demand-supply scenario?
The demand curve for backhoe loaders has bottomed out in 2014. The supply capacities have always existed since 2009. It is action time now; both demand and supply will grow at a very health rate.
Focus on large scale infrastructure projects with tight schedules; new areas of applications in rural areas such as irrigation, agriculture; higher urbanization; and higher concrete usage in infra projects are some of the major growth drivers.