We focus on delivering superior value through cost-effective solutions without compromising on quality or performance
Volvo CE has a reputation for bringing the latest technologies and innovations. Volvo’s equipment offer the company’s hallmark qualities: industry-leading fuel efficiency and productivity levels that customers love the world over—particularly in India. In an exclusive interview to CONSTRUCTION OPPORTUNITIES, DIMITROV KRISHNAN, MD,VOLVO CE INDIA, gives an over view on the compaction equipment industry, innovations & cutting edge technologies, aftermarket services and a lot more.
Give us an overview of the Compaction equipment industry in India, latest trends and market dynamics
The compaction equipment industry in India is witnessing robust growth, driven by substantial investments in infrastructure, urban development projects, and road construction. As the third-largest construction equipment market globally, India’s demand for compaction equipment continues to rise. Technological advancements are also shaping the market, with companies integrating smart diagnostics for enhanced monitoring and efficiency. Currently, the market size is estimated at around 5000 machines in 2023, with an overall increase in sales of 35% compared to 2022. Q1 of 2024 has shown similar market size compared to 2023 and we are expecting the market to grow by 8% on YoY basis. The compaction market is estimated to reach 6,000 units by 2026. The long-term outlook also remains promising, with ICEMA’s Vision 2030 report envisaging the compactor market to double from the current levels by 2030.
Tell us about the range of Compaction equipment offered by you, in terms of types, capacities and applications. Have you launched any new products or launching new products in the near future.
Volvo CE offers a comprehensive range of compaction equipment tailored for various applications in the construction sector. Our portfolio includes Soil & Asphalt compactors & Pneumatic tyre roller, available with different options to suit specific project requirements.
Our soil compactors SD110CD and SD110C are specially designed for the Indian market for application on steep gradients and in poor under-wheel conditions. In the asphalt compactors range, we offer DD100C & DD90C, with PT220C in Pneumatic tyre roller. All products are designed to deliver the highest level of quality and performance to compaction projects. In the electric range, we have developed a concept DD40 Electric mini asphalt compactor, India’s first electric road machinery designed, developed, to be built locally. In electric range, we also intend to offer PT220 roller which is designed for roadway applications. Our innovative range of compactors not only boost productivity but also minimize emissions, energy consumption, and waste, contributing to a significant CO2 emissions reduction and steering the construction equipment industry toward a more sustainable and eco-friendly future. Both products are presently undergoing field testing before we announce the commercial launch dates.
What innovations or technological advancements have you imbibed in your compaction equipment. What distinguishes them from competitors.
Volvo CE integrates cutting-edge technologies in its compaction range to ensure optimal performance and operational efficiency. Our products feature advanced hydraulics for precise control and fuel efficiency, which contribute to lower operating costs and reduced environmental impact. Safety is paramount, with Volvo CE’s equipment incorporating robust safety features such as reinforced, industry best and extremely safe canopies and ergonomic controls for operator comfort and protection. These innovations distinguish Volvo CE from competitors by offering superior reliability, productivity, and sustainability.
Factors such as safety, operator comfort, ease of operations are crucial. What are the steps undertaken by you for providing the same.
Volvo CE prioritizes safety, operator comfort, and ease of operation across its compaction equipment range. Our products are equipped with ergonomic designs, superior visibility from the operator’s cabin, and intuitive controls for enhanced operational efficiency. Safety features such as industry best canopies and comprehensive training programs underscore Volvo CE’s commitment to creating a secure working environment. Additionally, our Uptime Services ensure minimal downtime through proactive maintenance and quick service response, supported by a network of service centers across India.
Tell us about some major projects where your compaction equipment have been used and the benefits accrued to your customer
Volvo CE equipment has been integral to numerous prestigious projects across India, including highway expansions, airport runways, and urban infrastructure developments. Customers benefit from our equipment’s reliability, efficiency, and versatility, which contribute to accelerated project timelines, cost savings, and superior project outcomes.
Aftermarket services as a strategic differentiator.
Volvo CE’s aftermarket services play a pivotal role in enhancing customer satisfaction and equipment longevity. We offer a comprehensive suite of services, including Uptime Services, Safety Services, Fuel Efficiency Services, and Productivity Services. These services are designed to maximize equipment uptime, minimize operational costs, and improve overall productivity for our customers. Volvo CE’s Financial Services further support customers with flexible financing solutions tailored to their business needs, ensuring seamless equipment acquisition and operational efficiency.
Your strategy to play in a price sensitive market.
We focus on delivering superior value through cost-effective solutions without compromising on quality or performance. To achieve this, Volvo CE leverages localization strategies to utilize Indian-made components and parts. This helps us enhance cost competitiveness. Our range of compaction products also come with supreme fuel efficiency features to optimize operational costs, making our equipment a compelling choice for value-conscious customers.
Rentals are growing, your strategy to tap opportunities and outlook for the rentals market.
We recognize the growing trend towards equipment rentals in India and offer flexible rental solutions tailored to customer needs. Through our financial services, we provide attractive rental and leasing options that enable businesses to access our advanced equipment without significant upfront investments. Our digital platforms facilitate efficient fleet management and rental operations, ensuring customers benefit from operational flexibility, reduced downtime, and enhanced productivity. We also offer new-age service solutions like Equipment as a Service (EaaS), a flexible model that works on a usage-based contract with an uptime assurance, which makes it convenient to pay only when utilizing the equipment at a fixed hourly rate. We are optimistic about the rental market’s growth prospects and our ability to meet increasing demand with innovative rental solutions.
What sort of government policies or measures will foster growth for the compaction & paving equipment industry.
Infrastructure has taken the center stage in the recently announced Union Budget 2024. The proposed increase in capital expenditure to Rs.11.11 lakh crore for FY2025 and the Prime Minister’s vision of making India the third-largest global economy opens up huge opportunities for the industry. Government initiatives such as the National Infrastructure Pipeline (NIP) and policies promoting infrastructure development are pivotal for fostering growth in the compaction equipment industry. Volvo CE remains committed to supporting the nation’s forward-thinking initiatives through our comprehensive range of products and services designed to meet infrastructure demands sustainably.
Future outlook on the industry and from a company perspective?
Looking ahead, Volvo CE remains committed to driving innovation and sustainability in the compaction equipment industry. We will continue to introduce advanced technologies, expand our product portfolio, and enhance our service offerings to meet evolving customer expectations.
Through continued strategic investments and localization, we aim to strengthen our market leadership and contribute significantly to India’s infrastructure development journey.
