Taking the ‘Bharat’ Growth Story Ahead!
A recent Crisil Ratings report stated earthmoving equipment accounted for 70% of sales volume last fiscal, material handling and concrete equipment 22%, while material processing equipment comprised the rest. According to the report, the revenue for the domestic construction equipment sector is expected to grow by 14-15% in FY24, driven by continued government focus on infrastructure build-out, especially roads, metros, and railways, including projects under the National Infrastructure Pipeline (NIP). In volume terms, the sector is projected to achieve all-time high sales of 1.2 lakh units this fiscal, compared to 1.1 lakh units in FY23. Additionally, with the sector migrating to CEV Stage-V2 emission norms from April 1, 2024, pre-buying of equipment is also likely towards the last quarter of this fiscal. The rise of smart cities is further fuelling the expanse of smart construction equipment.
Another report by JLL also echoed the same sentiments, mentioning that the Indian real estate market is expected to reach US$1 trillion, powered by a number of macroeconomic drivers, and significant inflows of FDI. The sector is looking poised for expansion, with the potential to tap into approximately $41 billion in domestic institutional capital.
On the other side, the construction equipment market has been traversing the green route to stay committed to reducing emissions. Be it fuel efficiency optimization to harnessing renewable energy sources, the industry has been innovating solutions that resonate with the collective imperative for a greener tomorrow.
With such impressive initiatives & buoyant outlook in place, construction equipment players and allied segments are poised to take the ‘Bharat’ Growth story ahead.
Here’s wishing the entire construction fraternity a great & prosperous season of festivities…