Tuesday, September 21, 2021

Interacton - Sanjay Saxena, Sr. VP & Head of Heavy Eqpt Business Unit, Sany Heavy Industry India Pvt. Ltd

Sany India has always been at the forefront to redefine the customers’ experience with its innovative technologies

 

Sany India offers a wide range of innovative and technologically advanced road construction equipment. With ‘Quality Changes the World’ as its motto, the company always strives to provide world-class products to its customers.

In an exclusive interview to CONSTRUCTION OPPORTUNITIES, SANJAY SAXENA , SENIOR VICE PRESIDENT & HEAD OF HEAVY EQUIPMENT BUSINESS UNIT., SANY HEAVY INDUSTRY INDIA PVT. LTD., speaks about his company’s range of road construction equipment, cutting edge technologies, aftermarket services and a lot more.

 

 

Briefly give us an overview of the road construction equipment industry, the latest trends, and current business drivers? What are the road equipment currently most in demand?

 

Currently, the construction equipment industry is witnessing substantial growth, due to increasing road development programmes undertaken by the central and state governments. It is expected to register a CAGR of 4% during the forecast period of 2020-2025.

 

With rapid progress, new and emerging technologies are also reshaping the dynamics of road construction with a renewed focus on sustainable development. To improve the efficiency and the quality of construction, the usage of telematics, automation, and machine control technologies is on a rapid rise In addition, the usage of improved materials for road construction such as recycled materials, plastic wastes, self-healing asphalt, are also increasing rapidly. Sustained growth of urbanization and major on-going national highways projects across the country are driving huge demands for the road construction equipment. Road construction equipment like Hydraulic excavators, Mobile cranes, Piling Rigs and Motor graders are high in demand among other equipment.

 

Many states have now eased the lockdown, has there been a uptake in sales for your company, provide details with regards to the current situation of the industry and what are your strategies to overcome these challenges

 

Yes, there has been green shoots of revival in sales of construction equipment as most of the states have eased the lockdown restrictions. With the resumption of economic activities in the country and the efforts of the government, we are witnessing positive movement in enquiries. Adapting to the new normal, our sales teams are interacting with clients, following the COVID appropriate protocols. Furthermore, the massive vaccination drive against the Covid-19 is also playing a pivotal role in reviving the economy.

 

As the CE industry is getting back in shape and coming out of the second wave, we aren’t facing any major challenges right now. However the impact of monsoon and lockdown extension in the south states have caused a slight disruption in sales. As the third wave concern looms large, we hope that that pace of revival remains intact in the coming months.

 

 

 

What are the range of construction equipment offered by your firm to support India’s road construction plans? Cutting edge technology like telematics, IoT featured in your machines?

 

Sany India offers a wide range of road construction equipment such as Crawler excavators, Motor graders, Road pavers, Surface Milling Machines, Cranes, Asphalt mixing plant, etc. Apart from these, Sany India provides essential equipment such as piling rigs and cranes for road construction. Our road construction equipment are widely used in the construction of highways, airports and higher-grade roads across the country.

 

Talking about technological advancements, Sany India has always been at the forefront to redefine the customers’ experience with its innovative technologies. We are among the first manufacturers to introduce ‘Telematics’ as a standard feature in excavators. Moreover, we also offer EVI Mobile App to our customers, which help them to manage their equipment status through (IoT) data lake architecture.

 

 

 

Aftermarket services as a strategic differentiator.

Aftermarket services are very important. We at Sany India strongly believe in delivering the best after sales services for all products. We give an option of full Maintenance Contract (FMC) for our machines at the time of sale. We also have an on-ground service team at the project sites like mines all the time, which is equipped with essential lubricants, parts etc for a quick address of any call. Good after-sale care increases the product life and durability considerably.

 

 

Please provide details on your emphasis on technology, research, design and innovation? What are the advancements you have introduced or plan to introduce?

We firmly believe that technology, design and innovation are the core sectors of product. To redefine the customers’ experience, we have been strongly focusing on all these core areas to make our product stronger in the market. As per the market requirements, we have been frequently upgrading our product with cutting edge technologies, which helped us increase our product quality.

 

As our motto is ‘Quality Changes the World’ we always strive to provide world-class products to our customers. We are among the first manufacturers in India, who have offered a telematics system as a standard feature with mini excavators. Furthermore, we also have developed an ‘EVI’ App so that customers can manage their business more efficiently through (IoT) data-like architecture. In the future we are planning to introduce new generation machines like excavators.

 

 

Are you looking to add new equipment to you existing product portfolio?

Many new products are lined up which will be rolled out in the market in near future. In view of the rising demands for construction equipment, more strength will be added to the excavator and piling-rig segment with new machines. In addition, more attachments will be added in most of the construction equipment segment to increase the work quality of products.

 

 

What are the trends driving purchase or hire of road construction equipment market in India? To what extent is consumer behavior influenced by cost? With uncertainty all round are you seeing a shift from purchase of machines to rental or leasing, your comments?

We are seeing promising trends in the road construction equipment with expected growth of up to 10 to 15 percent in FY22. An estimated investment of around `3000 crore is lined up across manufacturers in the road construction equipment market.*

 

Government’s increased spending on infrastructure projects along with exclusive emphasis on highways through accelerated highways development program has been a major driver for the demand of road construction equipment in the country. Moreover, there is also an accelerated growth in the related real estate sector and rise in public-private partnership projects. We are also observing a larger emphasis on increasing cost-efficiency and productivity via latest technologies and reducing dependency on the labour.

 

Despite these promising trends, COVID-19 had led to major disruptions in the market as well as financial strains for many buyers. Thus, rental equipment has also emerged as a viable option to utilise latest construction equipment for greater efficiency at reduced costs.

 

 

 

Your comments on the financing of equipment, how fast and easy it is for a customer to get finance. What according to you will enthuse customers to buy equipment and thereby increase sales?

With the ease of Covid-19 restrictions and rising construction activities – the financing companies have initiated hassle free loan sanction systems to meet the needs of the customers. Moreover, the financing companies are also providing creative financing programs & flexible payment options that enable the customers’ to finance equipment with much beneficial structure. Traditional financing process which used to take weeks or even months has now been reduced to days.

 

Understanding the needs of the customers during this uncertain time, Sany India also provides payment deferral options for quality buyers on our brand new products. We would like to share that last year we sold many machines through a deferral payment plan.

 

 

How do you expect the market to shape up for the road construction equipment industry. What sort of government policies or measures will foster growth for the infra industry at large thereby propel the growth of CE industry?

As the government has set an ambitious target to build roads worth `15 lakh crore over the next couple of years, the road construction equipment industry will register remarkable growth in the future. To propel the growth, the government can introduce a Production-Linked Incentive (PLI) scheme, which can enhance the domestic manufacturing in the country. The scheme can also play a key role for India to become a manufacturing and exporting hub in the world. Amid this economic upheaval, the creation of an ‘Infrastructure-focused bank’ to fund major projects can also be proven a boon for the CE industry.

 

Moreover, the government can also explore the FTAs to uplift Indian CE industry competitiveness and also introduce liberal measures to increase FDI in the country, which will further improve ease of doing business in infrastructure.

 

 

Future outlook from a company perspective?

After facing headwinds, the road construction equipment industry is expected to register a remarkable growth due to rapid urbanisation and infrastructure development activities in the country. With announcing the highest ever financial allocation of `1.18 lakh crore for highways construction, the government has accelerated the demand for road construction equipment.

 

Moreover, the government’s announcement to award another 8,500 km road projects and complete an additional 11,000 km of national highway corridors by 2022, has given much impetus to CE industry, which will drive the huge demands for road construction and earthmoving equipment in near future




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