I believe that the impetus on infrastructure has been efficient in arresting the slowdown which had set in the construction equipment sector Ranjeet R. More Vice Chairman & MD, Universal Construction Machinery and Equipment
India has an impending need to build its infrastructure to nurture its economic growth what are your views on this?
I completely agree, when it comes to infrastructure, we need to have access to world class infrastructure which among other things ensures proper connectivity between cities, emerging cities, satellite towns and villages. The state of infrastructure as of now is inadequate to cater to the needs of a nation in the revival mode. We have not even scratched the surface; this is just the beginning, the destination is far off and we have miles to go before we can call it a day.
With government keen on giving a massive push to infrastructure sector how do you see the growth pattern for construction equipment sector in the near future?
The emphasis on infrastructure has been timely and precise but at the ground level it means a lot of work. This is where the construction equipment comes in; given the size and the targets of the projects on the anvil a lot of construction equipments will be put to use. For a company like Universal this is certainly good news because we have a diverse portfolio of the state of the art machines. Given the volume of projects and the short supply of labor, the market trends will ultimately boil down to increased mechanization which will create inroads for all the construction equipment manufacturers. Hence I believe that the impetus on infrastructure has been efficient in arresting the slowdown which had set in the construction equipment sector and we are looking at an optimistic period ahead.
Last year almost 8000 km of road construction was awarded and in the year 2016-17 the target is to release a contract of 10,000km, what does it mean to a company like Universal?
This is a very good opportunity for the construction equipment players to capitalize on; such initiatives provide the much necessary boost that every construction equipment manufacturer was waiting for. Universal too stands to benefit from this exercise. As an active player in the industry we will be thoroughly involved in these nation building initiatives and actively partake in all possible ways.
What kind of automation has set in the CE sector and what are the product trends?
A lot of smart technology is being put to use to ensure the end product is user friendly; to achieve this numerous processes have been streamlined and there are certain processes which still need to be streamlined. The precise integration of the functionalities and controls in the machines is being achieved through continual software development, this is turn allows the end user to effectively control the machine and thereby improve productivity. Not only managing the machine becomes a lot easier, the maintenance process too gets simplified.
What about concrete pumps? How has the slowdown in real estate market affected the pump market?
The pump market has been able to sustain owing to the increasing number of projects in the infrastructure segment, however the slump in real estate has led to lesser demand for specific products.For e.g. earlier the demand for Universal HBT 60 cubic meter concrete pump had shot up but ever since the slowdown people are opting for Universal HBT 40cubic meter concrete pump.
Considering the good deal of ongoing construction activity in New Mumbai and the adjoining areas Universal launched a show room in Kamothe offering CASE CE how has the demand been so far?
The Universal Constore construction equipment store caters to local demand rather than export markets; currently it exists in four cities one of which is based in Kamothe, Navi Mumbai, the other three stores are based is Pune, Delhi and Bangalore. As of now the focus is to satiate the local demand which has been sustainable. Considering that this entire set up is only two years old, we are very satisfied with the sales potential these outlets have exhibited.
What are the existing brands associated with Universal Constore and what are the new brands on the anvil?
Keeping in view the market demands we have entered into key tie ups in the earth moving sector. We have a tie up CASE CE for the earth moving sector we have tied up with Mahindra for gensets and roadways machines from China. We have tied up with some of the crusher equipment industry.We have an arrangement with the smallerplayers for safety equipments, safety gears and small machines. Likewise we are roping in new international companies including one from Korea and a few from Japan.
Your focus on R&D has enabled you to design customized products for Border Road Construction Organization (BRO) and NTPC, please tell us about these products?
The product which we delivered for BRO was a mobile concrete making machine, a small plant which has inbuilt drainage system and an inbuilt water measuring mechanism, all in all a mobile machine which can work in extreme temperatures,from minus twenty degree to plus fifty degree. When we say that the same machine is going to perform under different weather conditions a number of parameters get altered, right from the oil and the greasing system to water system everything changes. There is a provision for the heating system too.The machine has been extensively used in the remote areas of India along the China border. For NTPC we designed a lift called Urjawhich can reach an altitude of three hundred meters; it is an import substitute which is erected on the conveyor. Both these products have delivered acceptable results and we are getting repeat orders too.
What are the global markets you will cater to in the near future?
In these past few years we have realized that Universal should be more focused on international markets we have an existing tie up with TATA International Ltdfor reaching out to international markets. When it comes to distribution, off late, TATA International Ltd has exhibited a robust efficiency in the African markets. A lot of our products have made an entry in the Middle East and Asia Pacific markets.Last year we have opened an office in Dubai to ensure that we can reach out to the prospective clients in that region.
