The Central and Sate Governments have to take necessary steps to refresh the mining activities, says Kaushik Das, Managing Director, Konark Infracore. Excerpts from the interview...
What are the core strength and competencies of Konark Infracore?
Konark Infracore is into construction and mining equipment sales and service for Odisha. It has corporate office at Bhubaneswar and branch offices at different locations: Talcher, Paradip, Sambalpur, etc. Talcher, being a coal mining area, has workshop facilities. All our offices are equipped with 3S (Service, Spares and Sales) facilities. Our core competencies lie with mining and construction fields.
What are the various equipment you deal with? Which equipment/class finds demand in the market?
We are dealers for LiuGong India, the Indian subsidiary of an internationally acclaimed mining and construction equipment manufacturer. We deal with wheel loaders (1.8T, 3T and 5T), motor graders (12 ft and14 ft), excavators (8T and 2T), dozers, and forklifts (1.5T, 2T and 3T). Out of these, wheel loaders of 5T class has huge demand in the market and the 12 ft motor grader has created good response in its category. We also deal with Macons concrete equipment. Macons batching plants and mobile plants have good demand in the market.
What is the price range for each category of equipment? Who are your major customers?
LiuGong products are economically priced. Wheel loaders in the 3T category come in two variants: CLG 836 and CLG 835 with price ranging from Rs 29 lakh to 32 lakh. Wheel loaders in 5T category have three variants: CLG 856 (CZ, MZ and CL) with price ranging from Rs 57 lakh to 65 lakh. Also, all wheel loaders are made in India. Hydraulic excavator in 8T class (CLG 908D) comes with a price tag of Rs 30 lakh and the 21T class with a price of Rs 55 lakh. All hydraulic excavators are imported.
What is the demand-supply scenario for the equipment from the market?
We operate in the entire state of Odisha, a mining rich state. Coal mining and ports are our major markets. The wheel loader CLG 856 has a huge demand, both in mining and ports sectors. Till date, we have already supplied more than 250 wheel loaders of 5T capacity in the coal mining areas of Odisha. Similarly, we have supplied about 40 wheel loaders of 5T capacity in Paradip Port area and the numbers are counting in both coal mining and ports.
What is the approach from the customers on sophistication in equipment vis-a-vis cost?
Customers have become price conscious and they know the quality aspects and the exact needs in an equipment. So keeping in mind the requirements of customers, LiuGong has come out with a variety of wheel loaders and motor graders. Though some brands have next-generation features and sophistications, the price of those brands is very high. In the current scenario, all work orders come with stringent profitability and overpriced equipment will reduce the profit margins. That´s why LiuGong equipment comes with all necessary advanced features.
What are the challenges you face in the current scenario?
Present industry scenario is totally negative. Iron and coal are two major sources of economy, which have witnessed a huge slump; and we too, feel the heat of the market. However, we are putting extra efforts on sales and service front to sustain the momentum. I think, both the State and Central governments have to take necessary steps to refresh mining activities.
What are your future plans?
We are planning to start new branches in southern and northern parts of Odisha. We also have plans to start our second workshop for transmissions, engine and hydraulic works.
Konark Infracore deals with wheel loaders (1.8T, 3T and 5T), motor graders (12 ft and14 ft), excavators (8T and 2T), dozers, and forklifts (1.5T, 2T and 3T).