Over the past decade, tower cranes have proliferated in the construction industry. EQUIPMENT INDIA finds out more about the TC market trends.
Our estimate pegs the total demand for tower cranes in India at approximately 600 units. Of these, 85-90 per cent of the demand is from the real estate construction sector, while the remaining 15 per cent comes from power, steel and cement. The total market size in terms of revenue is approximately Rs 450 crore, says Tushar Mehendale, Managing Director, Electromech, about tower cranes (TCs). He adds, "The current demand for tower cranes from the power, steel and cement sectors in India is quite low, amounting to only 25-30 units per year. The real estate sector drives maximum demand for tower cranes and is expected to continue growing at 15-20 per cent per year. The fertiliser industry and ports segment currently generate negligible demand for tower cranes in India."
Says PV Ramdev, Managing Director, Everest Engineering Equipment, "current conditions are very positive for tower cranes as well as for the passenger hoist market. Since most of the builders and contractors now opt for the latest technology and for mechanised construction, this segment will see a definite increase of 15-20 per cent this year, and 30-40 per cent increase in the next year. The growth potential of tower cranes will be driven mainly by the real estate sector, and a part of the power and steel sector. The cement sector contractors are not too familiar with the application of tower cranes. In the future, though, this sector holds good potential. Expectations from the fertiliser and port sectors are very low."
Ramdev further adds, "Currently, demand has reduced by about 50 per cent, especially for big tower cranes .The economic slowdown and the depreciation of the Indian rupee really hit this sector hard as the foreign suppliers are not able to match the price expectations of the customers. Even though the foreign suppliers have reduced their price, costs have increased by more than ten per cent. However, Indian manufacturers are doing good business as the small capacity cranes offered by them have not been affected too much on the costing side." Rajeev Kumar, Chief Executive Officer, Friends Equipment, says, "There is tremendous scope for big capacity tower cranes (20 to 40 T capacity) in thermal power plants, as more than 300 power plants are in the pipeline, though due to the coal/gas allocations, the process has slowed down. After the 2014 elections, the scenario should change. Secondly, 80 per cent of the tower crane business is from the real estate sector, especially in metros like Mumbai, Delhi NCR, Bangalore, Chennai, etc. Customers in Tier-II and Tier- III cities have also started using tower cranes of 5 to 6T capacity for their projects. In my opinion, the real estate sector is the Number One market for tower cranes. The demand from cement plants for tower cranes ranging from 6 to 25T is good, whereas in fertilisers and ports, it's just so-so."