We hope that construction segment as whole will have maximum mileage in GDP growth of India for financial year 2015-16, says Dhvanil Shah, Director, Jhanvi Earthmovers in an interaction with EPC World.
With the government’s emphasis on various reforms, the mining and construction equipment sector did not witness traction in demand during the first half of 2015. Can you please apprise us the dismal growth of the construction equipment sector?
We are already facing problems in reviving mining sector. However, with direct allocation and bidding process, the things will turn around soon. Moreover, slowdown in infrastructure segment is a global phenomenon and it will need international funding to revive fast. Construction equipment sector therefore has faced severe slowdown. It has led to second hand machine market where equipment are liquidated soon. Banks have also slowed investments in infrastructure sector. This financial crisis is pinching more.
What is the impact of present slowdown spell on the company? Has it provided the company an opportunity to fine tune its operations?
‘Make in India’ is a great initiative by our beloved prime minister. It is showing positive marketing signs world over. But still government agencies and business chambers will have to give priority in all events, decision policies, showcases and markets to the Indian parties over others. Also, some financial help should be given to Indian exhibitors by either subsidising cost or otherwise, to showcase their products to the world by participating at various exhibitions.
The present slowdown has a negative impact in terms of bottom line. However, it has given an opportunity to fine-tune ourselves. In recent past, we have created new synergies with our suppliers and customers to provide more efficient and cost-effective spares to them. These synergies have enabled us to reduce overheads such as inventory carrying cost and hence maintain our margins.
With the size and scale of business, how does the company maintain innovative edge?
Jhanvi Earthmovers has come up with more customer-friendly website and during Excon 2015. We launched our Android based Mobile App for the convenience of the customers to get in touch with us. Our mobile app is a great marketing tool and gives complete details and control to our customers.
Does India offer the strong growth opportunities and how much growth will come from this market in next financial year?
India is an emerging market and offers growth opportunities due to various infrastructure projects in pipeline and the revival of mining activities in near future. We hope that construction segment as whole will have maximum mileage in GDP growth of India for financial year 2015-16.
What are the most selling products and why?
Fast moving and regular wear and tear items are fast moving items. Capital goods and spares are not in demand due to overall slowdown in the market.
What kind of opportunities did the event Excon generate for your company? How has it generated the momentum for the construction equipment industry?
Excon is a great platform to get in touch with old as well as new customers. It is the largest marketplace and platform for construction equipment sector. Many new leads have been generated to the advantage of Jhanvi Earthmovers. Also, the company has created a great impact with its presence at the exhibition. It was the busiest exhibitions with a lot of potential. We believe that with reforms in government policies and such response at the exhibition(s), Jhanvi Earthmovers will reach new heights.
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