Page 115 - Constrution Opportunities December 2016 Digital Edition

INDUSTRY FOCUS: EQUIPMENT FINANCE interaction infrastructure projects? And how have you both these interrelated sectors. Infrastructure loaders will continue to remain our focus innovated out of this slump? fnancing in de-marketed projects is the need area in the CE sector. While the construction equipment industry of the hour. For instance, in the road sector, in particular witnessed a slowdown in terms the government is already in the process of Give us an idea of the current trends in of growth rate index, we, at Mahindra awarding 25,000 km of national highway construction equipment fnance. Finance, continued to ofer quality products projects in 2016- 17, as against 10,000 km In the current construction equipment Two decades ago, Mahindra and Mahindra Financial Services Ltd commenced its journey in and services to existing and new customers. awarded in 2015-16. Tis will drive demand financing scenario, we see increased the rural non-banking finance industry. The company today offers financial assistance to Te challenges of the past months helped for fnancing of construction equipment. participation in retail purchase. Our schemes segments such as construction equipment both new and used as well as wheeled vehicles. the company to strengthen its operations and product oferings are tailored to suit RAMESH IYER, VC AND MD, MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD offered and tap market potential. We introduced What support are you ofering to the rental customer requirements and operations. 250 new branches, recruited about 1,000 equipment segment? CONSTRUCTION OPPORTUNITIES an insight into the evolving trends in equipment financing employees and provided quality training to Mahindra Finance sees tremendous potential Give us a sense of the challenges faced by and company’s future plans. the workforce. Mahindra Finance regularly in used equipment financing and rental construction equipment fnance providers, introduces new fnancial products in the segments. Going forward, we are charting particularly in relation to cost and interest CE market. We do not believe in ofering plans to leverage this business segment. rates? What are your strategies to raise generalised products that may be more a We see opportunities for rental equipment your business profle? hindrance than a help. Instead, our products among small and mid-sized companies. Mahindra Finance is undergoing signifcant are designed as per customer requirement Tis segment plays an important role when digital transformation. To reduce cost, we and specifcation, and in sync with their a project is executed in two or more parts. are riding a wave of technological disruption business operations. Tis approach helped us Contractors also prefer hiring equipment, as to conduct business. In addition, we are also foster long-term relationship with clients. opposed to buying it, because of cost, storage training our existing workforce. Being an and maintenance issues. ‘AAA’ rated company, the cost of funds is Do you think there is a revival in public optimal. infra-projects? Have the provisions in the Which specifc equipment has growing Union Budget 2016-17 made a diference demand for fnancing? As a nonbanking fnance company, how on the ground for the infrastructure and Since road projects in both urban and do you measure up against national and construction sector? rural areas account for a large proportion international banks ofering equipment Te feedback from our customers indicates of infrastructure development, we are loan fnance? that there is heightened activity in expecting good demand for backhoe Mahindra Finance is unique in its strategies, infrastructure and construction projects. loaders, crawler excavators, motor graders, schemes and policies. We have always based Te government’s path-breaking initiatives compactors, mobile compressors, asphalt our business model on the basis of cash fow such as Make in India, 100 smart cities and fnishers, tippers, crusher units and other to the customer and we extend the same a liberalised FDI regime will further boost road equipment. Financing of backhoe philosophy to equipment fnancing. u DECEMbEr 2016 |construction opportunities 119