Strong customer demand, rise of outsourcing, entry of high cost sophisticated equipment and expected changes in legal, regulatory and tax framework would be the key enabler of a rise of leasing market in India, says Ranjit Manjarekar, Head - Infrastructure Finance, Tata Capital while sharing his views on the industry trends. Excerpts from the interview.What is the current scenario of CE financing sector?Construction equipment manufacturing industry planned a growth of 20-25 per cent this year, mainly contributed by growth in backhoe loader and material handling equipment specially pick-n-carry cranes. The strong order book of key manufacturers too reflects high demand of these equipment. However, increased steel price may result as price rise for construction equipment and increased rate of interest by RBI would have similar impact on financing opportunities. Not to miss fuel price rise, the viability of construction equipment will be in question and hence may create a negative sentiment in the entire equipment manufacturing and finance industry.If leasing is not grown to the expected level, what do you think the major factors?Uncertainty in legal and taxation environment, lack of organised players, lack of secondary market, lack of asset valuation and service support and the mindset of Indian consumers who take pride in 'owning' an equipment has been key constraints in the growth of leasing market. Strong customer demand, rise of outsourcing, entry of high-cost sophisticated equipment and expected changes in legal, regulatory and tax framework would be the key enabler of a rise of leasing market in India.What is the loan disbursal in the first quarter compared to first quarter in 2010?The disbursal of first quarter of the industry has been around 30 per cent higher than that of last financial year's first quarter. The growth in the coming quarters is very much dependent on inflation and vis-à-vis government support to the sector.How do you address the 'customer management issues' taken into account the majority of them is first timers (SMEs)?In terms of numbers, first-time users have always been more than retail or strategic customers. Any regular financier in this industry keeps in mind the presence of first-time users in this market while designing their credit policies and loan products. For us it has never become a challenge, thanks to the support extended to us by OEMs.Do you think there is an imbalance in supply and demand equation at the bottom of the pyramid?We do not feel any gap between supply and demand equations at any level as of now.What is the present scenario of second-sale financing?Second-sale financing is yet to evolve as an organised market. Equipment registration is a state level call and the industry is positive about few states taking initiative in this regard in near future. As far as Tata Capital is concerned, we fund deals fitting 100 per cent into the respective regulatory framework only.Tell us about the financing scenario of imported machinery?Imported equipment are getting due support in terms of financing. However, to boost the market there is a need of service support, faster equipment delivery and stable currency market.Which segment of equipment and machinery is more in demand?Earthmovers like backhoe loaders and excavators still hold the 65 per cent pie of the total construction equipment sales, followed by material handling equipment holding around 15 per cent of it.What makes Tata Capital stands apart in terms of its core strengths and competencies?At Tata Capital 'we only do what is right for our customers'. Our transparency in dealing and ethical standards is our identity in the market. A team of 250+ trained resources, presence in more than 90 locations and customer connect makes us what we are. Needless to mention, the support extended by leading OEMs has been a key contributor to our success.