Double-digit growth likely
Arvind K Garg Executive Vice President and Head, L&T Construction & Mining Machinery.
Excon is returning after a gap
of two years. What has been
the past experience at the
event?
Excon is a large, popular and
established platform for the
construction equipment industry in
India where corporates, large
infrastructure companies, contractors
and their subcontractors, project
construction professionals and retail
customers meet original equipment
producers and suppliers. The Indian
construction equipment industry looks
forward to each edition of Excon, to
showcase technologies, launch new
products and study ever-changing
customer preferences. Excon also
provides a convenient forum for our
customers to interact with our team
members, which helps build
confidence in our products.
L&T, along with its principals
Komatsu and Scania, has participated
in Excon since its first edition. Overthe years, as our product portfolio has
expanded, so has our stall area. We
have utilised Excon to launch new
products. It has benefitted us with
increased market share over the years.
At Excon, L&T has also been at the
forefront of the campaign to launch
Made-in-India products for road
construction in its run to fulfil the
Atmanirbhar Bharat mission.
What are the key products on
display during Excon? Explain
in detail.
In line with our focus on offering
sustainable technologies, L&T
Construction & Mining Machinery
and its principals, Komatsu and
Scania, will showcase the latest
technologies and digitalised solutions,
including virtual and augmented
reality backed simulators mimicking
real-life work conditions.
Komatsu offers a wide range of hydraulic excavators and is the market leader in the premium segment. The entire portfolio of Komatsu’s excavators available in India will be on display for our customers to experience. To complete the experience, Scania will display its mining tipper for customers to assess their suitability for different mining applications.
L&T will showcase its indigenous range of road machinery, vibratory compactors, wheel loaders, skid steer loaders and pneumatic tyred rollers so that customers can experience premium-quality machines built under the “Atmanirbhar Bharat” mission.
And for the first time, we will display a range of attachments for construction equipment, including crusher bucket, slope compactor, rock breaker, piling solution, rock splitter and cutter attachments.
Excon provides us with the opportunity to educate customers on the importance of genuine spares and lubes that increase equipment life and maintain machine productivity. So that customers can visualise genuine quality, we will present genuine spares and oils from Komatsu and L&T.
Reconditioned components like engines and pumps, available off the shelf, will be featured at the exhibition.
To offer customers respite in this tight lending environment, we will also present attractive purchase options and spot finance facilities for customers. New machines are also scheduled for launch at Excon, and we welcome you to join us at outdoor stalls No: 17 and 19.
How do you look at the market
in India for your products?
Our engineering and
manufacturing teams have successfully
launched CEV-IV models well in time.
These machines are working efficiently,
and customers have accepted them
well.
The ‘truly efficient’ Komatsu PC210-10M0 hydraulic excavator, launched recently, has also been received very well. It is currently setting new trends in performance. We have already sold over 2000 machines, with many achieving around 10,000 hours of smooth performance. We hope it will emerge as the undisputed leader in the 21-t segment very soon.
Komatsu’s bulldozer model D85 is already an undisputed market leader in the 200 HP segment. At the same time, L&T’s vibratory compactors are making deep inroads into the market. They are poised to corner a large chunk of the market very soon. We are upbeat about the sector’s growth prospects and emerging opportunities supported by the Government’s drive for infrastructure development and ambitious programmes like Gati Shakti and the ambitious National Pipeline Project.
What are the various
challenges faced in the sector
you are in?
CE demand slowed throughout
2019-20, which ended with lockdowns
imposed due to the pandemic. Since
then, the industry has been struggling
with various challenges ranging from
slow demand, muted rentals,
increasing fuel prices, and rising
equipment costs following increasing
commodity prices.
Equipment utilisation levels also dropped to a new low following the second wave of the pandemic and then an extended monsoon, which impacted the pace of infrastructure activities.
ICRA, in a recent report, had indicated that the sector, which witnessed a YoY growth in machine sales during H1 FY2022 due to a low base, saw a YoY decline during Q3 FY2022.
Rentals remain under pressure, although inventories have reduced to almost half compared to pre-Covid levels. In addition, the lending environment has also been cautious and tighter for smaller customers, first-time buyers and hirers.
Nevertheless, with the massive initiatives in infrastructure investment undertaken by both centre and state governments, we expect around 10 to 12 per cent growth during FY2023, reflecting a positive sentiment in the industry.
Please share more information
on the investment made in the
Indian market in terms of the
manufacturing facility, etc.
Our principal, Komatsu, through
its subsidiary, Komatsu India (KIPL),
has established a world-class
manufacturing plant for hydraulic
excavators in Oragadam, near
Chennai. Equipped with state-of-theart
systems such as automatic welding
robots, it handles both assembly and
processing of steel panels and rolls out
hydraulic excavators ranging from 7 t
to 45 t.
Scania has also invested in a production facility near Bengaluru. The plant produces heavy haulage off-road and on-road trucks and is its largest industrial footprint in Asia. KIPL has also invested in a parts distribution centre located in Nagpur, ensuring higher spare parts and machine uptime availability. L&T is the authorised exclusive distributor of Komatsu’s products and provides after-sales support to the products with genuine parts in India. L&T works closely with Komatsu to deliver exceptional value to its customers through effective site support and remote management of assets.
L&T Construction Equipment, a wholly-owned subsidiary of Larsen & Toubro and located in the industrial suburb of Doddaballapura, in outer Bengaluru, is engaged in the manufacture of a diverse range of road construction equipment such as vibratory compactors, pneumatic tyred rollers, asphalt pavers, skid steer loaders, wheel loaders and hydraulic excavators, besides attachments such as crusher buckets and slope compactors. L&T also markets and provides after-sales support for construction equipment manufactured by LTCEL.
LTCEL also manufactures and markets high-precision hydraulic components and customised systems for applications in construction equipment, industrial machinery and other engineering sectors.
To support our customers in getting the lowest lifecycle cost, L&T has invested heavily in service and training centres. It is the first OEM to be accredited as a training partner in the construction and mining equipment industry. L&T’s central training centre at Kanchipuram and regional training centres at Bahadurgarh, Durgapur, Nagpur and Kanchipuram are certified to conduct training and refresher courses for operators and technicians on excavator, dump truck, heavy tipper, wheel loader and vibratory compactor.
L&T also conducts classes for mechanics in hydraulics, mechatronics and engines under the various schemes in PMKVY.
L&T conducts RPL 4 (recognition for prior learning) programmes for customers’ operators and mechanics, which help operators earn formal recognition for their skills. In addition, L&T regularly conducts customised training programmes and technical appreciation courses on various product models for customers and dealers at Kanchipuram and customer sites.