Bondioli & Pavesi is a globally established components manufacturer with a special focus on Pumps motors and drive systems for construction and agricultural equipment. Manoj Joag, Director (Sales & Operation), elaborates on the company's plans and the market opportunities in India.
Construction market trends
Construction industry is moving at a faster pace and hopefully next year will be a busy time for everybody as the road is now clear for developments. People can take full advantage of this positive situation. In the components segment, there are more electronics and automation coming in now. Requirement for technologically advanced products is also increasing so the component players have to take up new faster ways to accommodate themselves in specific manner to meet the requirement of OEM customers to improve the quality of their products. Contractors are now looking at new generation equipment for faster project execution as old equipment cannot provide the desired efficiency and productivity. New technologies provide efficient products. There is a major technology change taking place in the Indian construction equipment market. We are trying to grab the opportunity on our part by providing advanced components.
For us, the agricultural
equipment segment is growing in a big way as a lot of mechanisation is happening in agriculture sector. People are working with a good number of harvesters, bailers, etc. We have products to offer for these equipment and we are doing trials with some OEMs in these segments. This will also help the agriculture industry other than construction industry. Opportunities are also there in irrigation and industrial infrastructure projects.
Localisation of the product is a major factor in real-time supply of components. Equipment demand is increasing as we found even a 50 per cent demand growth in certain industry segments. If you localise the production, you can supply the product to OEMs in time and in turn, OEMs also can supply their machines on time. We are working in this direction and hopefully we may succeed in the next year with a manufacturing facility in India.
In terms of improving equipment productivity, our technical team is working on new solutions to improve the power-to-weight ratio of the equipment, which in turn improves efficiency and productivity of the equipment. We are also planning to design a complete system and offer almost everything what is possible to our customers.
Products and solutions
We offer pumps and motors for loaders, pavers and compactors. We also provide gearboxes and complete drive system for pavers and self-loading concrete mixers. Now with upcoming norms for diesel engines, we have developed fan drives which we are planning to introduce shortly. This complete fan drive system takes care of the cooling of the engine system. We are gearing up to the next level of emission norms to meet the necessary emission levels. Fan drives are going to be a must for all engines, which will be one of the products we will be looking forward to supply in Indian market.
Change in any existing system in a country like India is going to affect the smooth operation for a while and you have to face such a situation. Looking ahead, within six months everything should be streamlined. The advantage of GST is that earlier manufacturing and trading were treated as separate entities. Now, we can work as single entity with manufacturing and trading. There is one single tax and no multiple compliances, which is an advantage. Reducing GST rates is a good move towards bringing down the product cost. In business, the prices are coming down.
Response at Excon
Excon was very good for us this year. We had a lot of visitors this time and a lot of OEMs have shown interest in our products. Many OEMs want to venture into new supplier contracts and we are one among their choice. We look forward to meeting them again and before next Excon we will be able to supply them a few quantity.
"We provide international quality products suited for Indian conditions"
(L-R) Stefano Baldi, Global Sales Director, BU Mobile and Wind Solutions,
Bonfiglioli Riduttori SpA, and Kennady V Kaippally, Country Manager, BU Mobile
& Wind Solutions, Bonfiglioli Transmissions Pvt Ltd
Bonfiglioli is one of the top-most international players in transmission products which has some long-term plans for the Indian market. Kennady V Kaippally, Country Manager, BU Mobile & Wind Solutions, Bonfiglioli Transmissions Pvt Ltd, and Stefano Baldi, Global Sales Director, BU Mobile and Wind Solutions, Bonfiglioli Riduttori SpA, share more...
Current industry scenario
With the GDP picking up again, we are going to see a positive impact of this in the long term. What we are sure about is a double-digit growth in the coming years but different segments of the construction equipment industry will have different growth figures. For example, excavators will probably have much higher rate of growth than backhoe loaders because it will be used more in specialised applications. Both these equipment need to be there as a lot of projects are coming up, but we expect specialised equipments to gain ground. The areas of concern would be mining which is still to pick up but when commodity prices are going up, we think that mining has to come up because demands are going up.
Bonfiglioli has a long-term vision for India. We started investing in our new factory in 2016. We are in the finishing stage of this new facility in Chennai which will be operational by mid-2018. The new facility will increase our capacity by 50 per cent.
New products and solutions
Existing products are an ongoing business in Bonfiglioli. Our in-house R&D facility works very closely with customers, understanding their applications, changing needs and we keep on improving our portfolio to meet their requirements. In the new product lines, most of the new concepts and designs are coming from electric driven machines, which are more environment-friendly. The traction for this technology is seen in material handling equipment, because the power density recommendations are little conducive for electric drive in material handling equipment. So eventually with the knowledge gained in this industry we will apply similar concept in other areas also, such as road construction equipment, concrete machinery and others.
We design India-specific and application-specific products because Indian applications are different from other parts of the world. We can give complete solutions for the spectrum of applications in India. We have products within our portfolio which can meet the needs of the Indian OEM customers. We can provide any of their development needs or future application needs. We have showcased some of the futuristic products that we are working and some of the traditional products at Excon.
Contributing to Efficiency and productivity
When you talk about productivity there are two aspects: product performance and product uptake. We bring in product performance by designing products which suites the application requirement which will meet their application needs and brings in certain productivity. Secondly, we are the world leading technology players in transmission industry globally. So that is the legacy what we are bringing here and offering products suited for Indian conditions.
Responses at Excon
I think the optimism in the air is much higher than what it was last time. We can see a number of products which are being launched. This is one aspect. The second thing is if you look at the equipment, we see that the customers are going up in value stream because the kind of products that we are talking earlier and now is different because they want to climb the value chain.
"The current equipment industry scenario is very positive"
Amit Bansal,Sales & Marketing Director - Building
Construction Products, Caterpillar IndiaWith an investment of approximately $1 billion, Caterpillar has consolidated its presence in Indian market. Amit Bansal, Sales & Marketing Director - Building Construction Products, Caterpillar India, shares more...
Importance of Indian market
India is one of our focus markets. We have been committed to the Indian market and have introduced a number of products and advanced technologies for our customers in India.
Caterpillar has been active in India since the 1930s. Investments made by Caterpillar Inc in India to date are approximately $1 billion. Along with our employees and our dealers' employees, about 10,000 people work in support of Caterpillar. We support sectors like mining, quarry, power generation, construction, road, petroleum, and rail.
We are committed to India with strong local presence. Caterpillar India has six manufacturing facilities, two R&D centres, one logistics and parts centre, and various divisional offices. Manufacturing facilities are located in Thiruvallur, Hosur and Aurangabad. Divisional offices are located in Bangalore, Chennai, Mumbai, Delhi, and Kolkata.
Products and solutions for Indian market
Products manufactured in India: Caterpillar's products that are manufactured in India are 'Built in India', for India and also for exports. Products manufactured at its facilities in India include backhoe loaders, skid steer loaders, hydraulic excavators, diesel generating sets ranging from 500-2,000 kVA, internal combustion engines, genset packages and components, four models of off-highway trucks (40,50,60,100 tonne), and small drivetrain transmissions that assemble into backhoe loaders and small wheel loaders. Apart from the above, we also offer motor graders, track type tractors of various capacities, large mining equipment, gensets and diesel engines of various capacities for Indian market.
Services offered: Customer support offerings, Cat 360°ADVANTAGE, Cat Connect Technology, Product support solutions, Cat Finance, and rental and used equipment solutions are the services offered.
The introduction of GST itself was a great step in furthering ease of doing business which has now been sweetened by rate cut. The current equipment industry scenario is very positive and this was quite evident in the Excon. The announcement of several infrastructure projects will further spur the demand of construction equipment which will be beneficial for the industry.
Response at Excon
The overall experience at Excon was highly encouraging and positive. The customer turnout was probably the highest we ever saw in any Excon. It is a true reflection of the state of infrastructure development activities in the country and the construction equipment industry looks to be buoyant.
Key takeaways from the expo Our message for Excon 2017 was 'Committed to your success'. The theme described Caterpillar's strategy to be the industry leader bringing digital solutions designed to improve productivity, efficiency, safety and profitability to its customers and helping them succeed. It provided an opportunity for Caterpillar and its dealers Gmmco and TIPL to strengthen and build relationships with their customers and understand their needs and expectations. We also got to see the emerging trends in the industry and changing customer preferences during the expo.
India is one of our major focus countries for Caterpillar. With a wide range of products, catering to the needs of several sectors in India, Caterpillar is certainly in a better position to enhance its revenue, both in terms of sales volume and profit from its India operations. In July this year, Caterpillar has issued its FY 18 revenue outlook which is very encouraging. We are hopeful to cross the set targets.
"We are working on Next-Gen Lubricant Technologies"
Managing Director and CEO,
GS Caltex India
GS Caltex is working on Next-Gen lubricant technology which will offer cleaner and better lubricants to meet the future requirements of the equipment industry. Rajesh Nagar, Managing Director and CEO, GS Caltex India explains the company's views on the current industry trends and its road map to future.
Indian economy is now moving in the right direction. The road map for the future infrastructure growth and government's way of handling it is clearer to the industry. We are still in need of millions and millions of dollars for infrastructure development in India as the scope is enormous. If we are continuing with the stable policy for the next 5 to 7 years, this sector is going to excel with a lot of business coming up and we have to catch up. I see a complete boom in the construction equipment industry as we still need a lot of airports, roads, ports and housing. We see the next 8 to 10 years good time for construction equipment industry and we as a company are geared up to handle it fully.
New developments in equipment market
The per day road construction rate has almost doubled from 13 km to 23-24 km now. The advent of newer technologies has resulted higher efficiencies in the overall system and the clarity of thought on the policies has made it even better.
All engineering and infrastructure companies have leveraged the benefits of new technologies. I think going forward looking at the constant changes in the technology we would require higher grade base oils as companies would move to synthetic grades from mineral grades used currently. The synthetic grades would not only increase the efficiency levels but would also be more energy efficient and reduce the emissions.
We being global players have always focused on research and development to ensure we provide the best to our customers. Our team is working on the synthetic grade of base oils and would want to offer the best value proposition to our customers.
New products and solutions
G S Caltex is fully aware of the futuristic scenario and the technological changes in the equipment market; our R&D team is closely working with global equipment companies as to what efficiencies they are bringing in their equipment's and processes and how we can add value to that through work. In the coming years, more and more new advanced technology implications will come.
In the transmission and the engine oil segment, we are moving towards higher grade and more efficient products. In the engine oil, we already have CJ and our global R&D team is working on higher grades. We are moving into synthetic zone in the Gear & Transmission Oil segment which will be more efficient and reduce the downtime.
Improving productivity and efficiency
We are using Group II+ and above base oils for all our products. These base oils are water white and have minimal impurities, giving a very good performance to the lubrication. We work with global OEM manufacturers who have very stringent norms for the quality and performance and on all the parameters we have always excelled and over performed. We have brought efficiencies in terms of high drainage interval, reducing the downtime, and low maintenance cost. It also helps OEM's to convince their customers on using only genuine product, which we have developed along with the OEMs. I feel the OEMs also are focusing on reducing the downtime of their equipments for improving the profitability of their customers.
Responses at Excon
Excon is one platform which is attended by all the global OEMs and by participating in this exhibition, I think we can showcase our capabilities to the potential clients. It's a perfect event to meet, interact and understand their needs, also witness the latest changes taking place in the CE industry and prepare ourselves to come up with some innovative solutions which can add value to their customers. We have got good responses this year and many new customers have visited our stall, we look forward to more such kind of events where we can showcase our capabilities.
"In India, 50 per cent of our sales are in construction equipment"
Northern Europe and India Sales Manager,
A French company with about 2,000 people working worldwide, Poclain Hydraulics has ten plants worldwide and one of them is in India, in Pondicherry. Massimo Boscarino, Northern Europe and India Sales Manager, Poclain Hydraulics, elaborates on the company's focus on India with its range of components for infrastructure equipment market.
In India, 50 per cent of our sales are in construction equipment. Construction sector is very dynamic and is growing faster in India, especially in 2017 where globally our growth is about 25 per cent (compared to 2016), and as a group, we grew about 12 per cent worldwide.
In India we work with several construction equipment OEMs in different applications like for example soil compactors, skid steers, etc. Those sectors have been growing significantly especially in 2017.
Products and solutions
We are a system supplier for hydrostatic transmission, mainly focused in mobile hydraulics for different types of vehicles. Hydraulic motor is our core business. Then in our portfolio we have a range of hydraulic pumps, valves and electronic system to control the complete transmission. We also have some sales on industrial hydraulics systems: applications like shredders, wagon tipplers, tunnel boring machines... are also a significant growing markets for us.
Our motors are modular and can be used in several different applications. However, there are products which are designed for some specific applications.
In Excon, we have presented several new products: for example, our high flow motors. In this motor, we have made some fluid dynamic optimisation and basically in the same dimension the motor can give more power and higher speed than the previous version. The more recent innovation is our new high performance motor, called MHP. This is a new generation of motor we developed in our Company, this product can work up to 500 bar (where our standard products can go up to 450 bar), and can have up to 4-speeds, a much higher power and rotation speed compared our actual range of products and our competition. It is a real break though in our innovative technology. Then we have also displayed our new heavy duty pump which is also validated for 500 bars with new electronic control that allow a very precise and quick reaction time. We also shown our new 50 cc pump which we developed also recently and that we want now to promote in the Indian market. This pump has been completely designed in order to be very reliable, and it is available with several types of controls and with different displacements.
We also displayed our new braking valves range with new casting shape, lighter and with improved performances.
Enabling productivity and fuel efficiency
All our products have high efficiency. We have also developed a software in-house, called EcoDrive, to control and optimise the transmission for some types of machines. Thanks to our transmission electronic control, we can reduce the machine diesel's engine rpm, and at the same time, we can increase the pump displacement in order to keep the machine performances constant, and at the same time we optimise the fuel consumption, the machine noise, etc. In order to validate this product, we have done some comparative tests on the same machine with and without our software and we have shown significant fuel reduction without affecting the machine's performances.
Response at Excon
It is an ideal occasion to meet the customers and get an overview of the market in India, moving forward with some projects we are developing with them. We are happy to have a booth and it is the only exhibition where we exhibit in India.
"We expect a double-digit growth in CE market in the next 10 years"
Managing Director – India, Eaton.
Eaton is global leader in power management with a strong presence in the Indian market and a wide range of cutting-edge hydraulic, vehicle and electrical offering for the construction equipment industry. Nitin Chalke, Managing Director - India, Eaton explains the company's outlook on the market and the way forward.
The industry seems to be on an upswing now. A major reason for this is the growth in infrastructure projects. The government's focus and investments in infrastructure projects has grown substantially and this trend should continue for the next couple of years. Roads constitute major share of infrastructure growth and with the announcement of the Bharat Mala project, roads will continue to be a major engine for growth for the construction equipment industry. There is also lot of optimism for growth from increased investments in ports and railway projects. Considering these positive trends, we expect at least a double-digit growth of the construction equipment industry in the next 5-10 years.
Products and innovations
A major technology trend now is digitization. Customers are looking for more connected products that allow life and performance tracking with real-time data to deliver maximum equipment uptime. Our customer centric approach and unrelenting focus on innovation empowers us to stay ahead of the curve. We have an exciting portfolio of advanced technologies with integrated telematics and digital connectivity for construction equipment that ensure reliable and safe operations while minimizing downtime. For example Eaton's CMA200 - an advanced electro-hydraulic sectional mobile valve that comes with independent metering that utilises pressure and position sensors, on board electronics, and advanced software control algorithms to deliver the highest precision and response. Similarly, Eaton's Lifesense™ hose is a path breaking technology in hose condition monitoring system capable of forewarning the user of impending hose failure.
Of efficiency and productivity
Power-density ratio is extremely critical in hydraulics as it impacts productivity as well as fuel efficiency. Reducing the physical footprint of a product while enabling it to generate the same amount of power can bring down the fuel consumption substantially. Another way to increase productivity is to make your equipment smart. A good example is a technology called load sensing that regulates power usage depending on load fluctuations and makes operations much more efficient. Eaton has a wide range of products that are thoughtfully engineered and designed to make construction equipment more fuel-efficient while delivering high productivity.
Though infrastructure growth in the country is very encouraging, efforts have to be made to do away with systemic inefficiencies that exist in the construction and infrastructure space. The government is surely taking some astute measures to address these and strike down the barriers that stunt growth of some sectors. Another challenge has been the failure of the Public Private Partnership (PPP) model. A lot of private investments happened in infrastructure sectors, but many projects have not taken off owing to NPA issues. Most of these are large infrastructure projects under the PPP model. The PPP model needs to be modified so that more private investments can come in and fuel growth.
Response at Excon
This was one of the best editions of Excon that we have participated in - both in terms of footfall through all the days as well as industry involvement. The major focus was on new technology and innovation and it was wonderful to see many innovative products already available at various stalls. It was also encouraging to know about many infrastructure development plans shared by visiting ministers and officials at the inauguration event.
"We have the best product for rock cutting applications"
Christoph Goebel, Sales Director,
Anbaufrasen PC GmbH (Erkat).
Anbaufrasen PC GmbH (Erkat) recently had a change in the ownership. 'Erkat now belongs to the Atlas Copco group. This change has opened to us the Indian market. Atlas Copco's deeper market penetration will help us generate much more sale and bring in key customers,' says Christoph Goebel, Sales Director, Anbaufrasen PC GmbH (Erkat). He shares more...
Erkat started about 20 years ago with drum cutters and we put a lot of effort in promoting them. Our target is to provide the most reliable cutters worldwide, and we are still following our mission. We have the best product in the market for future applications.
Change of ownership
Atlas Copco wanted to expand their range of products. For hydraulic attachments, they have been strong suppliers with a range of reliable products. Atlas Copco has created a separate company Epiroc and a separate HAT (Hydraulic Attachment Tools) group. Our machines fit perfectly into this hydraulic attachment tools business. We add new product to their range, which will still be sold under Erkat brand.
Drum Cutter is a perfect tool to replace conventional methods of rock cutting. They have several advantages. We call it a silent demolition tool - no vibration, no noise, high productivity and more accurate cuts. There are many applications in India where drum cutters should be considered as a useful product.
Maximum demand has been coming from tunnelling, mining, construction and demolition applications. Under - water cutting is another area where we have been very successful. We have to continuously analyse market demand and bring in new products for India
This exhibition has the best participation of suppliers of construction machinery and I was quite impressed by knowledgeable visitors who visited our booth. This is my first visit to Excon, and I am thoroughly impressed. We are here with an aim to create product awareness. Our product is a niche product and most of our deliverables are relatively not very well known to the market.
"We are geared up to meet market requirements"