CASE will be showcasing its entire gamut of products in Excon 2019 - Puneet Vidyarthi, Brand Leader, Case Equipment Financing

CASE will be showcasing its entire gamut of products in Excon 2019 - Puneet Vidyarthi, Brand Leader, Case Equipment Financing

Share with us your views on the funding opportunities available and that can be explored for players like you today? 
CE rental, financing and after sales have emerged as a differentiator in providing a holistic view of the overall CME sector. Construction rental and financing services caters to the capital financing needs of almost all types of earthmoving equipment. As the segment requires large capital expenditure, financing accounts to a total of 80-85 percent of equipment purchased. Over the last six years disbursements to the sector have grown at a CAGR of 10.9 percent and are further expected to grow at a rate of 20-21 percent for the next three years until 2021 fiscal. On the other hand CE business gives a major advantage of cutting on higher equipment cost, protection from market fluctuations, eliminating storage and transportation issues. Currently the business accounts to 7-8 percent and is expected to grow rapidly. Therefore, the opportunities in the market are immense and the segment is destined to grow in the coming years.

How has the year fared in terms of demand and excitement for equipment financiers?
The year started with a lot of expectations from the construction equipment sector. The slow pace of growth in the industry led to a static phase, hence the demand and excitement is much less than last year. Although the need of equipment finance is now more than before as it helps in growth of CE rental business and offers the dealers as well as customers major advantages of cutting down on equipment acquisition cost, protection from market fluctuations, eliminating storage and transportation issues. Equipment finance helps the acquisition of equipment on easy terms and enabled regular cash flow and avoids business cycle fluctuations for customers. Also, the segment is at its recent stage and so we should definitely give it some time to penetrate well in the sector, to judge the curve it will be drafting in India.

Tell us about the hurdles that still needs a resolution and how do you tackle the same?
In India, construction equipment leasing is still a new concept, accounting for 6-8% of the overall construction equipment market as of Fiscal 2017; on the other hand the global average for leasing is 50-60% of the overall construction equipment business. Unfavorable tax treatment of leasing in India could be cited as one of the reason of slow penetration. The introduction of GST is expected to clarify the ambiguity on the tax front. There is a clear need to make the sector more organized. Leasing is of primary importance to ensure the infrastructure growth of the country. CASE India prioritizes customer satisfaction and has contributed to this practice by recently launching its financial services business - CNH Capital in India as well. CNH Capital provides a comprehensive range of services, including wholesale and retail equipment financing support for our customers. This service helps our customers and potential customers in their equipment purchases. For us and our customers, time is money. We endeavor to avoid downtime by making sure that our machines are regularly maintained and monitored. To enable easy access for customers to dealers and after-sales services, the company has an extensive network of around 74 dealers with nearly 300 plus touch points spanning the length and breadth of the country to support the products with spares and service even in remote locations.

New or rental - which is the largely demand pulling segment in regards to financing opportunities in India?
 The equipment financing segment in itself is at such a nascent stage, it is still trying to establish itself in the market. The demand definitely is more towards the rental side than new. Construction equipment rental business is the recent ongoing trend for the manufacturers. The current rental market is said to be around 7-8 percent and it is growing rapidly. Case India helps the customers by their ‘Capital Mitras’ policies, Capital Mitras function as a financial advisor to the customers - to educate customers on various financing related issues such as ‘kind of finance’ 6 months installments/ quartet installments, ‘best scheme ‘and help them in their journey. Customers mostly go for rental because it helps them in cutting down on equipment acquisition cost, protection from market fluctuations, eliminating storage and transportation issues. Equipment finance has also helped the acquisition of equipment on easy terms and enabled regular cash flow and avoids business cycle fluctuations for customers.

What are you bringing to the platform of Excon 2019? Any new additions in your offerings?
CASE will be showcasing its entire gamut of products at Excon 2019 and we expect the same would draw visitor’s attention to our booth. CASE India is planning some exciting launches in this Excon but same are under wraps of now, request you to please visit our stall OD75 at Excon 2019.

@EPC World Media



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